Jacksonville Jaguars veteran defensive end Jason Babin opted out of his $6.25 million contract with the team prior to the start of free agency, in part because it lacked zero guaranteed money. Babin returned to the team, signing a new three year deal, but also taking a decently sized pay cut to return.
On Babin's old deal, which had two years remaining, he was set to make $6.25 million each season. On his new three-year deal worth $8.275 million, he's set to make half that in 2014.
2014 - Babin is due $1 million in base salary with a $2.1 million roster bonus, making his cap hit $3.1 million and only accounting for $500,000 in dead money if he does not make the final roster, as his deal only has $500,000 in guaranteed money.
2015 and 2016 - Babin is due $1.5 million in base salary with an $850,000 roster bonus, making his cap hit $2.35 million. At this point all of his guaranteed money has been paid so his release will result in a straight cap savings of $2.35 million.
Babin can also make an additional $350,000 each year if he plays all 16 games. He gets a bonus of $21,875 per game. Babin also has an annual roster bonus of $500,000 and can make an additional $775,000 through other incentives (guessing playtime and sack numbers).
Overall, it's a pretty significant pay cut from Babin who must have known the market for his services wasn't going to be very big. By voiding out his deal and re-signing he at least assured himself of some guaranteed money in 2014 if he does not make the final roster.