Mike Chappell of the Indystar pointed out to me earlier today that the NFLPA’s website lists Ryan Lilja’s base salaries for the next few years at $620,000, $630,000, $765,000 and $775,000.

That’s not really interesting until you note that the contract he signed last year had base salaries of $2.35M, $3.055M, $3.76M, and $4.21M.

A quicker look also discovered that Adam Vinatieri’s salary is down to $1.49M from what was originally scheduled to be $2M.  If the actual move is what I expect, the savings will be approx. $250K in 2009 (and will increase his 2010 cap hit by that amount, which will be guaranteed).

What at first seemed likely that happened with Lilja is that the team wanted to convert the $1mil roster bonus he was due to receiver into a signing bonus, saving the team $750K.  But changing the base salaries wouldn’t have been necessary for that as his remaining salaries would have fit under the 30% rule.  Rather, what seems likely is that the team guaranteed a portion of his base salary for 2009 and converted it to a signing bonus (under the definition sof the CBA).  This signing bonus however, is not covered within the 30% rule.  As such, a reduction of base salary in 2009 would result in a violation of the 30% rule as an increase to $3.055M in 2010 salary would far exceed 30% of $620K in 2009.  As such, all future base salaries had to be lowered accordingly.

Now, I think it’s HIGHLY unlikely that Lilja would simply reduce his base salaries voluntarily in future yeras without additional compensation.  To that end, there’s likely an option bonus for the amout of salary reduction given in each year.  That way, he’s essentially out no money because if they exercise the option to keep him, then he gets the money and if they don’t, he doesn’t.  It’s no different than being cut in terms of how much money he would get.

My Take:

Taking the reduction in salary for 2009-2011 and making it an option bonus for those years would circumvent the 30% rule for those years (I believe the CBA requires the prorated amounts of an option bonus counts as it’s prorated, rather than all at once like a roster bonus or not at all like a signing bonus) .  The only issue is in 2012, since it is the final capped year, the discrepancy doesn’t result in a savings as the full amount of the decrease ($3.435M) would hit in that year.

Perhaps that amount was moved forward and spread out earlier.  Perhaps he’s just not going to receive it and he truly took a paycut.  Regardless, I’m not going to know the specifics until I can get ahold of his agent or Polian (I think I’ll go with the agent first).

Either way, two things can be taken from this.

First, the Colts are in bad enough cap shape that for the first time in recent history that they’ve had to push money that otherwise wouldn’t have been guaranteed, into the future.  This isn’t a simple accounting restructuring like with Manning and Harrison in the past.  This looks like the team is actually pushing money into the future that they had not planned on doing.

Secondly (and perhaps more optimistically), it looks like the team is comfortable enough with where Lilja’s at that they would guarantee a portion of his base salary for 2009.  Had they not been comfortable, I would think that they would be hard-pressed to guaranteed the money that they wouldn’t have to pay at the end of training camp should he not be fully recovered from his knee problems.

Either way, things are moving the in the front office, and once I get more details, I’ll be sure to post them.