The Detroit Lions got creative with Will Harris’ contract, taking advantage of CBA rules and loosening the salary cap.
The Detroit Lions re-signed Will Harris on Tuesday and they were able to break their salary cap set for him due to some sort veteran salary benefit called four-year qualifying contract.
Here’s the NFL’s explanation of the Veteran’s Salary Advantage:
“Previously known as Minimum Salary Perk, the Veteran Salary Perk allows teams to offer any player with at least four credited seasons a “qualification contract” at a reduced salary cap hit. Pursuant to this provision, a qualifying contract is a one-year contract worth the minimum base salary applicable to a player with their number of seasons credited, plus $152,500 in additional compensation (i.e., signing bonus, roster bonus, incentive, etc. – amount begins increase in 2024). These contracts will count towards the salary cap at the rate of a player with two credited seasons in that league year.
Essentially, the Veteran Salary Perk is intended to give teams the ability to sign a player who has been in the league for four years at a discounted rate. It’s good for the team because those players cost less, and it’s good for the players because it encourages teams to sign veterans instead of just going to cheaper players on rookie deals.
There are two key numbers to remember here. First, the veteran minimum for a fourth-year player is $1,080,000. Second, veterans can be offered up to $152,500 in bonus cash to stay compliant.
Here’s the league’s statement on the four-year qualifying deal:
“Another type of veteran salary benefit may be offered to a player with at least four credited seasons whose contract with a team has expired after having played four or more consecutive league years with that team prior to the expiration of their contract. Such a player must have been on the team’s 90-man active/inactive roster for those seasons (and each regular-season and postseason game). Teams can sign a maximum of two eligible players for this type of benefit.
“A qualifying contract under this benefit is a one-year contract with a base salary of up to $1.35 million more (planned to increase in 2024) than the minimum base salary for that player. However, if a team signs two players on a qualifying contract, there can only be an additional base salary totaling $1.35 million between the two deals. Under such agreements, only the applicable minimum base salary (not the $1.35 million benefit) will count towards the salary cap.”
First, to qualify for this benefit, players must have been on a team’s active roster for four full seasons and enter free-hands upon the expiration of their rookie contract. The Lions had three players who met those requirements this season: Harris, Amani Oruwariye, and Austin Bryant. Bobby Price didn’t qualify because he spent time on the Lions practice team during his rookie season, while CJ Moore didn’t qualify because he was fired at cutdowns last offseason before returning at half.
The key numbers to know here is that teams can bid up to $1.35 million more than the Veteran League minimum – that’s $1,080,000 as mentioned earlier.
Also, this money can be allocated to one player or divided between two players. The Lions have opted to only apply it to one player (Will Harris) this offseason.
With those numbers in mind, let’s examine the parameters of Harris’ new contract.
Will Harris – Veteran’s Salary Cap with a four-year qualifying contract
(Details about Overthecap.comDiagrams created by Erik Schlitt)
As you can see from the contract above, Harris’ base salary is $2.43 million. This number was arrived at by adding the minimum for fourth-year veterans ($1.08 million) to the increase allowed by the four-year qualifying option ($1.35 million). The prorated bonus of $152,500 is also determined by Veteran Salary Benefits.
Once the Veteran Salary Agreement parameters are met, the four-year qualification rebate kicks in, reducing Harris’ salary cap in 2023.
One final note on this type of contract: expect Harris to do the roster
To prevent teams from taking advantage of this, both base salary and prorated bonus are fully guaranteed, totaling $2,582,500 for Harris.
If the Lions keep Harris on the roster, he’ll cost them a $1.3 million cap hit in 2023, but if they choose to release him, they’ll face a 2,582 dead cap penalty because of the guarantees. Get $500.
Therefore, it would cost the Lions more money ($1,265,000) to cut Harris than to keep him on the list.
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