CLUMP or MERMAN HELP!!!!!!!!!!!!!!!!

[unclemonty]

Could you please help us with a question.
What are the cap savings from releasing Fiedler before AND after June 1st???? No one can agree on the numbers. We need an expert!!!

THX

[wonderl33t]

I made this post yesterday man check it


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[Merman]

Clump and I were just discussing this the other day and we didn't finish. We differ a few thousand on the signing bonus proration which is insignificant. We were also discussing bonus acceleration for not paying the option due 4/15/04 which does not make any difference if he is cut before 6/01. The big difference is the option bonus treatment. The Herald's numbers seem to be already prorating the $2 million option. This is the treatment I will give here as that is the reference in the other thread.

Base salary...................... $3.7 million
signing bonus proration..... 1.137
prorating option .................0.667

Total...................................$5.504

Less dead money (3yrs)......$3.412

Cap Savings........................$2.092

If you don't count the option at all the savings is reduced by $667k and if you include the option in total the savings are increased by $1.333 million.

[Clumpy]

I concur, but the real savings come in 2005 & 2006. If Fielder is let go now, there will be no cap hit for him after 2004.

[Aqua]

Actually Fiedler's deal was for five years with a $4M bonus so his dead money is $2.4M. You guys keeping the cap figures need to research that original deal further.

Base salary...................... $3.7M
signing bonus proration..... $800K
prorating option became roster bonus. ....$2.0M

Total...................................$6.5M

Less dead money (3yrs)......$2.4M

Cap Savings........................$4.1M

[Merman]

Originally posted by Aqua
Actually Fiedler's deal was for five years with a $4M bonus so his dead money is $2.4M. You guys keeping the cap figures need to research that original deal further.

You are missing last year's $1.25 million roster bonus that was considered signing bonus.

[Clumpy]

I also believe the Fins guaranteed his roster bonus. $312,500/season

[DeDolfan]

The way I see it, if he is cut now, it's the better option in that his base is 3.7 (a savings) his amortized bonus of around 1.12 X 3 (yrs left on contract), pretty much equals the salary and gets washed out cuz all the bonus $$ counts this yr cuz it's b4 6/1. but we'll save his 2 mil roster bonus that's due, when, 4/1 or thereabout.

If we wait til 6/1 to cut him, then the 2 mil roster bonus will have been pd and spread over the 3 yrs remaining on his deal will count as a 1.8 mil hit for 04 and all the rest, about 3.6 mil will count next yr. It would seem that if they're going to dump him, it would behoove us to do it b4 the roster bonus come due.

Please tell me that I'm somewhere in the ball park on this Clump !!!

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[Clumpy]

The $2 million bonus due in April is an option bonus that activates 2006. If he stays with Miami, it will not be paid. That would mean that amortization from 2006 would be accelerated into either 2004 or equally split between 2004 & 2005. Merman says it's accelrated into 2004 and I think it's the latter.

To figure cap savings, take the cap hit and subtract accelerated amortization:

$4.8125-$3.3375=$1.475 million

Then subtract the cost of the 52nd player (right now it's $235,000)

$1.475-$0.235= cap savings of $1.24 million

Since the option will not likely be paid, it's not necessary to include it in the calculations

[DeDolfan]

Originally posted by clumpedplatelet
The $2 million bonus due in April is an option bonus that activates 2006. If he stays with Miami, it will not be paid. That would mean that amortization from 2006 would be accelerated into either 2004 or equally split between 2004 & 2005. Merman says it's accelrated into 2004 and I think it's the latter.

To figure cap savings, take the cap hit and subtract accelerated amortization:

$4.8125-$3.3375=$1.475 million

Then subtract the cost of the 52nd player (right now it's $235,000)

$1.475-$0.235= cap savings of $1.24 million

Since the option will not likely be paid, it's not necessary to include it in the calculations

The confusing part to me is that the way it sounds is that it would be paid if he is cut in 06.
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