Capology - the details behind Tom Brady's contract extention

Submitted by m1817 on

 

Earlier this week, Tom Brady agreed to a contract extension that would pay him a relatively paltry $24 million over 2015 through 2017. 
 
In the process, Tom Brady's salary cap figure for the next two years came down by nearly $15 million for the combined period of 2013 and 2014.
 
Before the extension, the remainder of Brady's existing deal had consisted of $19.5 million in salary and $10 million in roster bonuses over the 2013 and 2014 seasons. In this new deal, he will receive fully guaranteed salaries of $1 million in 2013 and $2 million in 2014, and a $30 million signing bonus paid out as follows:
 
- $10 million of that bonus this season
- $  5 million on Feb. 15, 2014 and 
- $10 million in the 2014 season
- $  5 million on Feb. 15, 2015.
 
So Brady will make $3 million more in 2013 and 2014.
 
The 2015 through 2017 portion of his deal is fully guaranteed for injury at anytime, and fully guaranteed so long as Brady is on the roster throughout the 2013 and 2014 seasons.  The only way Brady doesn't see every nickel of this deal is if he spontaneously retires at some point.
 
Because the NFL salary cap allows teams to spread signing bonus money out prorated over the life of a contract, the years 2015 through 2017, serve as a placeholder for the pro-rata portion of the $30 million that Brady is getting paid in signing bonus money these next two years.
 
Because it is virtually guaranteed, the three-year extension establishes a floor for Brady's compensation from 2015 through 2017, and more importantly establishes a golden parachute in the event he is catastrophically injured at any time during the life of the contract.
 
Brady's 2015-through-2017 salary figures are baseline floors that can be raised or supplemented with more bonus money come 2015.
 
Let's just wait until we get to the 2015 offseason and see what happens with those next three years. 
 
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LSAClassOf2000

March 1st, 2013 at 7:59 AM ^

....they talked about this very thing, oddly enough (LINK).

"The Ravens have until March 4 to decide whether to make Flacco their exclusive franchise player, at a cost of $19.63 million against the salary cap for the 2013 fiscal year, or a nonexclusive franchiste tender of $14.6 million."

The cap figure is actually reduced, according to the article, because Brady took less in 2013. All the same, Flacco's agent seems to want Baltimore to somehow make Flacco the highest-paid QB in the league, which would mean more than the annual average of contracts like those of Drew Brees and Peyton Manning (numbers in the article).

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APBlue

March 1st, 2013 at 8:53 AM ^

Although I do think he's overrated, I can't imagine he gets that non-exclusive offer.  Baltimore can't afford to lose him.  

There has to be more than a few teams that would pony  up two first round picks to have him as their QB.  I know he doesn't have a big wow factor, but how many teams, especially bad teams, screw up their first round picks anyway.  

If I were a team like Jacksonville, Arizona, Cleveland, Minnesota, Oakland, Tennessee, or Miami, I would give up two first rounders and not even think twice about it.  This isn't meant to be a totally inclusive list, but an example of teams that have question marks at QB.  

First round picks are not guarantees, so give 'em up, plug Flacco into your line-up and get on with the gettin' on.  

The other interesting note is that the Lions and Stafford are negotiating a new deal that is expected to lock him up for several more years and also lower his cap hit for 2013.  That will also have a negative effect on Flacco's franchise #.  

 

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boliver46

March 1st, 2013 at 12:50 PM ^

for other QB's to dislike Tom...first Gisele, and now he lowers the Franchise Tenders for all QB's in the league.

Tom is all-powerful.

 

EDIT: I hit 100 points with this post.  YAY!

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