Brady restructures contract - saves Pats $24 Mil in cash flow

[MJD42]

http://espn.go.com/blog/new-england-patriots/post/_/id/4775277/explaining-the-significance-of-tom-bradys-contract-restructure?ex_cid=espnapi_public

 

Brady is at it again. Restructures the guarantee performance of his deal to save the Pats $24 mil in cash flow that they can now spend on the many FAs they have this off-season.

[dw49]

http://espn.go.com/blog/new-england-patriots/post/_/id/4775277/explaining-the-significance-of-tom-bradys-contract-restructure?ex_cid=espnapi_public

 

Brady is at it again. Restructures the guarantee performance of his deal to save the Pats $24 mil in cash flow that they can now spend on the many FAs they have this off-season.

 

 

This is what ESPN is reporting. That it "frees up" 24 million in cash to spend on players this offseason. I'm going on record and saying that is total HOGWASH. The only way this was true is if Kraft didn't have the cash to give to any player. It no way changes the cap for the Pats. This is being reported all over the internet and I say they are all full of crap. In fact his cap # will go up as I've read that his base is going up 1 mill per season. Better put this is just saying that if Kraft didn't have the cash available to give signing bonus out in 2015 , he now has 16 million to dole out. Only way it's 24 minion is if they cut Brady .. unless I'm missing something here.

[Fx Stryker]

Wait, how does this clear up money? Not only does his contract become full guaranteed, before it was guaranteed only in the event of injury, but now he is getting a $3M raise spread through the next three season.

How does that save money?

[amfootball]

This is what ESPN is reporting. That it "frees up" 24 million in cash to spend on players this offseason. I'm going on record and saying that is total HOGWASH. The only way this was true is if Kraft didn't have the cash to give to any player. It no way changes the cap for the Pats. This is being reported all over the internet and I say they are all full of crap. In fact his cap # will go up as I've read that his base is going up 1 mill per season. Better put this is just saying that if Kraft didn't have the cash available to give signing bonus out in 2015 , he now has 16 million to dole out. Only way it's 24 minion is if they cut Brady .. unless I'm missing something here.

Yes, if you read the link that MJD posted it is a cash savings. Basically Brady changed his contract from performance guarantee to injury only which frees up the Pats from having the 24 mil in an escrow and allows them to use that cash in the 2015 season on their many FAs. It does not change his cap hits. But will allow the Pats to get more creative as they try to sign Revis, McCourtney, Vareen, etc. It also exposes Brady as now they can release him for performance.

[Superman]

This is what ESPN is reporting. That it "frees up" 24 million in cash to spend on players this offseason. I'm going on record and saying that is total HOGWASH. The only way this was true is if Kraft didn't have the cash to give to any player. It no way changes the cap for the Pats. This is being reported all over the internet and I say they are all full of crap. In fact his cap # will go up as I've read that his base is going up 1 mill per season. Better put this is just saying that if Kraft didn't have the cash available to give signing bonus out in 2015 , he now has 16 million to dole out. Only way it's 24 minion is if they cut Brady .. unless I'm missing something here.

As of today, the Pats would have had to place $24m in escrow. Now they don't have to. It's unclear whether Brady's 2015 base is guaranteed as of today, but it appears that it's not. So it increases cash flow by $24m.

I don't think Kraft has money issues, but that's a couple signing bonuses, easily. However, many big signing bonuses are paid in installments, anyways. So it's just paperwork. But as always, media is going to report it as Brady giving them money.

[dw49]

It was really a give and take although Brady could be exposed in his final year if he's not injured and his skills eroded. He frees up can and he get's 1 mill per year added to his guaranteed contracts. Actually the Pats have less to spend on free agents not more as his cap went up 1 mill per year. I believe I was correct with my first post , it's just helpful in the event Krfat didn't want to dig deeper into his pockets in 2015 -2016, Here a good explanation of what it really is...

 

 

 

http://www.bostonherald.com/sports/patriots_nfl/the_blitz/2014/12/source_tom_brady_restructures_deal_to_help_patriots_free_up

[amfootball]

As of today, the Pats would have had to place $24m in escrow. Now they don't have to. It's unclear whether Brady's 2015 base is guaranteed as of today, but it appears that it's not. So it increases cash flow by $24m.

I don't think Kraft has money issues, but that's a couple signing bonuses, easily. However, many big signing bonuses are paid in installments, anyways. So it's just paperwork. But as always, media is going to report it as Brady giving them money.

There is a risk here on Brady's part to give up that performance guarantee. That being said, I do think something else has to be in the works with his deal. I can't believe he will play for $8mil this season. If he does, then he is literally giving the Pats money.

[dw49]

As of today, the Pats would have had to place $24m in escrow. Now they don't have to. It's unclear whether Brady's 2015 base is guaranteed as of today, but it appears that it's not. So it increases cash flow by $24m.

I don't think Kraft has money issues, but that's a couple signing bonuses, easily. However, many big signing bonuses are paid in installments, anyways. So it's just paperwork. But as always, media is going to report it as Brady giving them money.

 

 

It would only be a "temporary " saving of 7 mill in cash for 2015. I think the link I posted explains it. It would be helpful "cash flow only" if the Pats decided to keep Revis by forking over 20+ million is cash. I think the first "payment " would be aided by the 2015 7 mill. In all likelihood not true as the Pats most likely will extend Revis if they keep him. I mean .. how are they going to sign and keep all this guys if Revis counts like 22 mill against the 2015 cap. I may be stupid but I'm not dumb enough to be suckered by the espy talking noggins. 

[dw49]

There is a risk here on Brady's part to give up that performance guarantee. That being said, I do think something else has to be in the works with his deal. I can't believe he will play for $8mil this season. If he does, then he is literally giving the Pats money.

 

 

God you guys never will understand the cap. Brady is being paid 14 million for 2014. The 7 mill base salary , the 6 mill prorated bonus and the 1 mill his base is now going up. That is a bargain. But stop saying he's playing for 8 mill

[amfootball]

It would only be a "temporary " saving of 7 mill in cash for 2015. I think the link I posted explains it. It would be helpful "cash flow only" if the Pats decided to keep Revis by forking over 20+ million is cash. I think the first "payment " would be aided by the 2015 7 mill. In all likelihood not true as the Pats most likely will extend Revis if they keep him. I mean .. how are they going to sign and keep all this guys if Revis counts like 22 mill against the 2015 cap. I may be stupid but I'm not dumb enough to be suckered by the espy talking noggins. 

No way Revis signs for $20 but they can redo him and have cash for the deal, bonsues, etc. There is McCourtey too and Vareen.

[Superman]

There is a risk here on Brady's part to give up that performance guarantee. That being said, I do think something else has to be in the works with his deal. I can't believe he will play for $8mil this season. If he does, then he is literally giving the Pats money.

Not really. If he gets hurt, he still gets paid. If they get stupid and release him, he goes to the Bears/Rams/Titans/Bills/Jets, etc., whomever offers the best deal in his eyes, and makes many times more than the $8m. He's trusting them to not be monumentally stupid and release him, but there's zero chance of that.

[amfootball]

God you guys never will understand the cap. Brady is being paid 14 million for 2014. The 7 mill base salary , the 6 mill prorated bonus and the 1 mill his base is now going up. 

Oh stop. He got the 33 mil up front two years ago which we both know is in Gisele's petty cash account. lol.

 

His base will be $8 mil. You think he plays for that?

[amfootball]

Not really. If he gets hurt, he still gets paid. If they get stupid and release him, he goes to the Bears/Rams/Titans/Bills/Jets, etc., whomever offers the best deal in his eyes, and makes many times more than the $8m. He's trusting them to not be monumentally stupid and release him, but there's zero chance of that.

He is mostly trusting that they will continue to build a champ team around him which they made good on this past season signing Revis, Browner and Lafells.

[dw49]

Oh stop. He got the 33 mil up front two years ago which we both know is in Gisele's petty cash account. lol.

 

His base will be $8 mil. You think he plays for that?

For sure he plays for that. He's already collected part of his 2015 - 2017 salaries

[amfootball]

For sure he plays for that. He's already collected part of his 2015 - 2017 salaries

$14 mil is less than what almost half the QBs make in the league. Cutler will make a lot more than him. Oh the shame. But he always has Gisele's $50 mil.

 

BTW, a Boston writer claims she is the real MVP of the Pats this year for taking care of Brady so he can play at such a high level at his age, read it if you can keep from puking, http://www.boston.com/sports/blogs/obnoxiousbostonfan/2014/12/patriots_real_mvp_give_it_to_gisele.html?p1=menu_sports_latest_hp

[dw49]

No way Revis signs for $20 but they can redo him and have cash for the deal, bonsues, etc. There is McCourtey too and Vareen.

 

 

They aren't going to sign any more players due to this. It's pretty much just an accounting favor Brady did them . As I said , they now have "LESS !!!" to spend on free agents . The only way this helps is if they needed the cash. Can that possible true when I see this.......

 

 

 

1. Kraft, 73, has a net worth of $4 billion, which is an increase from $2.9 billion last year. Forbes ranks the Patriots as the second-most valuable NFL franchise at $2.6 billion.

[dw49]

$14 mil is less than what almost half the QBs make in the league. Cutler will make a lot more than him. Oh the shame. But he always has Gisele's $50 mil.

 

BTW, a Boston writer claims she is the real MVP of the Pats this year for taking care of Brady so he can play at such a high level at his age, read it if you can keep from puking, http://www.boston.com/sports/blogs/obnoxiousbostonfan/2014/12/patriots_real_mvp_give_it_to_gisele.html?p1=menu_sports_latest_hp

 

 

I always tell it like it is. Not only am I always right but I'm very fair minded also. Post # 9 of this thread I say "That is a bargain" when we spoke about his 14 mill cap hit. I might read that later as a favor to you but my stomach is a little off right now.

[Superman]

He is mostly trusting that they will continue to build a champ team around him which they made good on this past season signing Revis, Browner and Lafells.

He doesn't really have any choice there. He's under contract, with no leverage. But $24m is a lot of money for cash flow purposes, so regardless what else happens, it helps the team right now.

[amfootball]

 

They aren't going to sign any more players due to this. It's pretty much just an accounting favor Brady did them . As I said , they now have "LESS !!!" to spend on free agents . The only way this helps is if they needed the cash. Can that possible true when I see this.......

 

 

 

1. Kraft, 73, has a net worth of $4 billion, which is an increase from $2.9 billion last year. Forbes ranks the Patriots as the second-most valuable NFL franchise at $2.6 billion.

 

It's all paperwork and green paper. He and Brady bought land together in Brookline for heaven's sakes. He will be king of the castle when he retires. Robert may have more in his will for Brady than his four sons.

[amfootball]

I always tell it like it is. Not only am I always right but I'm very fair minded also. Post # 9 of this thread I say "That is a bargain" when we spoke about his 14 mill cap hit. I might read that later as a favor to you but my stomach is a little off right now.

Don't read it on an upset stomach. You won't make it. I almost didn't on a well stomach.

 

I have come to realize in this city that Gisele equals how ever many trophies Brady wins. He has three now so Gisele=3 Lombardi's. If he wins the 4th then Gisele = 4 Lombardi's. The obsession with her is beyond fanatic and obsessive to borderline compulsive creepy. I think the media/men think he won her.

[dw49]

It's all paperwork and green paper. He and Brady bought land together in Brookline for heaven's sakes. He will be king of the castle when he retires. Robert may have more in his will for Brady than his four sons.

 

 

I understand all that and it's good. My point is this really just makes life easier for the Pats. Pretty much an accounting issue. It really has no cap implications and makes zero room to pay other players. Is it possible they can write a better contract to two as a result of this ? Ehhh .. IMO that's stretching it as it's really 16 mill and not 24 as soon as the league year starts. 

[dw49]

Hey.. no doubt Tom Brady is the ultimate team guy and is not greedy.

[Cynjin]

If it frees up that much money, that is a great move by Brady to help the team out.  I am not one to tell a player he needs to sign for less, but in the NFL it sure can help the team out.  Brady seems to recognize that he can win more if he has better players around him.

[oldunclemark]

Oh stop. He got the 33 mil up front two years ago which we both know is in Gisele's petty cash account. lol.

 

His base will be $8 mil. You think he plays for that?

a.m.....he might play for that...clearly he doesn't need the money.

Giselle shows up and folks just start throwing money at her.

I wonder if he has issues because his wife makes more than him??

[amfootball]

a.m.....he might play for that...clearly he doesn't need the money.

Giselle shows up and folks just start throwing money at her.

I wonder if he has issues because his wife makes more than him??

Can I be her for like a day?

[21isSuperman]

"Awwww, he's so nice!"

     -Jay Cutler

[Superman]

I understand all that and it's good. My point is this really just makes life easier for the Pats. Pretty much an accounting issue. It really has no cap implications and makes zero room to pay other players. Is it possible they can write a better contract to two as a result of this ? Ehhh .. IMO that's stretching it as it's really 16 mill and not 24 as soon as the league year starts. 

 

We're talking about cash flow. If his 2015 salary isn't guaranteed prior to the season starting, then that money doesn't need to be escrowed. It gets paid out weekly.

[Fx Stryker]

The bottom line is the Pats no longer have to hold that $24M aside for Brady. He isn't saving them anything just letting Kraft spend his own money.

 

In terms of football and cap this is nothing. It actually increases his cap by $1M.

[MTC]

Am I missing something? 

 

They really don't save much money to re-sign free agents. 

[Fx Stryker]

Am I missing something? 

 

They really don't save much money to re-sign free agents. 

 

They don't save anything. They just don't have to hold the $24M aside for Brady anymore.

[Everyone]

ProFootballTalk ‏@ProFootballTalk 6m6 minutes ago

Folks, this new Tom Brady deal does not give the Patriots an extra penny in cap space. It's a cash-flow gimmick. Nothing more.

[TAPLOOK]

Awesome. Dude was born in a manger.

[High Valyrian]

a.m.....he might play for that...clearly he doesn't need the money.

Giselle shows up and folks just start throwing money at her.

I wonder if he has issues because his wife makes more than him??

It seems very difficult for people to believe this, and I don't know why. Giselle makes and has made more money per year than Tom does...for a few years now. Brady is beyond worrying...at all...about making more money. He and his family are set for life...perhaps generations if it is handled correctly. He needs to continue to have weapons and protection around him in his last NFL years. He's willing to take a pay cut in order to have that. He'll then retire and live a fairytale life that we peons can't even dream of. 

[LordHelpOurColts]

I wonder how much of that they'll give to Amendola?

[dw49]

We're talking about cash flow. If his 2015 salary isn't guaranteed prior to the season starting, then that money doesn't need to be escrowed. It gets paid out weekly.

 

 

true

[dw49]

It seems very difficult for people to believe this, and I don't know why. Giselle makes and has made more money per year than Tom does...for a few years now. Brady is beyond worrying...at all...about making more money. He and his family are set for life...perhaps generations if it is handled correctly. He needs to continue to have weapons and protection around him in his last NFL years. He's willing to take a pay cut in order to have that. He'll then retire and live a fairytale life that we peons can't even dream of. 

 

 

Nice but he didn't take any pay cut and the Ptas have less cap room and not more

[coltsfansince65]

He's such a good boy....................

[southwest1]

Okay, Eric Allen has officially ticked me off now. I'm getting sick & tired of NFL pundits making Tom Brady sound like the darn Pope for restructuring his contract. #1. He's not the 1st & only QB to ever do it, #2. I like Tom as a QB but let's not make it seem like he gave millions in salary to feed the hungry at a homeless shelter for a year, #3. Robert Kraft run a world class organization, but ESPN please stop licking the ground the Patriots walk on as if they are the only franchise that sets the agenda for 31 other organizations in the NFL okay. 

 

Was it a nice thing for Brady to do? Sure. Does it help keep their club retain quality players to win down the stretch? Of course it does. Just keep the gesture in it's proper perspective & don't elevate Brady to sainthood for being smart & a team player. Thank you. 

[jvan1973]

Awesome. Dude was born in a manger.

He uses his own name in vein a lot then. Also, seems like they would have more rings if that were the case

[IcEWoLF]

People that believe they are saving money really don't know what restructuring really means.

Tom is going to get paid either way. He just wants to have the talent around him in his last few years to make few playoff runs...I think they are doing this to try to win a championship while Brady is still at the helm...