[Dragon] The Chargers and safety Derwin James are "cautiously optimistic" they will agree on a long-term extension before the start of the regular season, per a person familiar with the situation. Both sides want to get a deal done. James is entering the final year of his contract.

What’s paid to the player is different than what hits the cap and when is important.

9m salary would usually be paid weekly through game checks. Cap hit 9m that year.

Signing bonus is paid as soon as you sign. But hits cap differently. Spread out over length of contract.

Players like it cuz they get money instantly guaranteed.

Orgs like it cuz they get lower cap hit to build team.

Possible to convert salary to signing bonus anytime.

8m signing bonus hits cap each yr.

8/5=~1.5

1-1.5 2-1.5 3-1.5 4-1.5 5-1.5

Cap hit = 1m + 1.5m = 2.5m 9m - 2.5 = 6.5m 6.5m spread over length of 5yr contract. 8m goes into their pocket. 6.5m lower cap hit for org. 1.5m/yr for 5yrs. Cap hit extra.

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