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

[jvan1973]

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...

This isn't freeing up cap space

[southwest1]

"What does it say about a player of his caliber that he's not consumed by every last penny?" Sigh...Drop the "A Christmas Carol" Tiny Tim act already Mr. Jim Basquil. [From the ESPN video clip]

 

Would you like a hour alone with a life size Tom Brady poster sir? Again, it was a nice thing for him to do, but let's not infer or create the misguided impression that he's the Mother Theresa of football for working with Kraft to spread more money around. 

 

At least, I let people know my obsessions up front: Zoe Saldana, percussion playing, Dallas Cowboys animosity, & Colts football. If your wife is cool with it, who am I to judge right? 

[amfootball]

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. 

That is all well and good but the two could divorce next week with Gisele taking half of everything. The fact is this. Just because Brady is in the position to be able to take a pay cut does not obligate him to. Did Kobe really need to sign a two year extension that made him the highest paid player given all the money he has made since he was 18? This is as much about ego than anything else. I am not saying a player should do what Brady did. Actually, just the opposite. I think they should make all they can while they can and most do just that. The fact that Brady has chosen NOT to do that is what stands out in a time where athletes are grabbing and clawing for every last cent. Just think about how much it must gnaw at a player like Brady to make less than Flacco, Ryan, Romo, and Cutler. And he is doing it after an MVP caliber season when he could command the moon. He is easily the most committed player to winning that professional sports has seen in the modern era.

[Shane Bond]

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.

How many did he win after being with Gisele .

[GoPats]

 

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.

 

 

 

I'm not a cap expert by any means. But I do know the Patriots operate within the cap while also having an internal budget with which they run the team. (As I imagine most teams do...)

 

There are a lot of creative ways to manipulate the salary cap. But in order to do that, you must have free cash to spend. By removing the skill guarantee, Brady freed up money to pay out two or three signing bonuses, minimum. 

 

You can criticize the Krafts for running the Patriots like a business, but at the end of the day that's what it is. They stick to their budget and run a tight ship. 

 

I'm not heaping even more praise on Brady, but money is clearly not a huge deal to him. I suppose that's a byproduct of being married to one of the richest women in the world. 

[Yehoodi]

good to see that the pats and Brady redid his deal to free up some cash to spend on other players.  I know some say Kraft has a lot of money, but to tie up 24 mil in escrow for essentially no reason does not make sense either.  Nice move by both parties. 

 

Will be interesting to see if this modified contract leads to any future moves with Brady down the road.

[Gramz]

I believe he's been referred to as "selfless in every aspect of the word".    

 

To some, I suppose.    To others, it's just another way to spin things.

 

They're ALL overpaid in my opinion.

[Yehoodi]

I believe he's been referred to as "selfless in every aspect of the word".    

 

To some, I suppose.    To others, it's just another way to spin things.

 

They're ALL overpaid in my opinion.

 

yah is unfortunate and I guess good for them.  Alas, the economy is strong enough to allow the NFL to increase the cash flow to allow them the funds to pay these players the money they receive.  The players really are not anymore talented than women althetes in the sports of women's basketball or women's soccer, in their respective sports.  The NFL players are fortunate enough to have their talents and gender to be in line with an employment that pays very well in this nation. 

 

Unfortunately, so fans can not now afford to attend games and/or purchase merchandise of their favorite teams or players . . .

 

btw, is that a Peyton Manning poster or blanket in your avatar ?   . .. looks like a goodie either way . . .

[Dustin]

He took a $3 raise.....

[Gramz]

yah is unfortunate and I guess good for them.  Alas, the economy is strong enough to allow the NFL to increase the cash flow to allow them the funds to pay these players the money they receive.  The players really are not anymore talented than women althetes in the sports of women's basketball or women's soccer, in their respective sports.  The NFL players are fortunate enough to have their talents and gender to be in line with an employment that pays very well in this nation. 

 

Unfortunately, so fans can not now afford to attend games and/or purchase merchandise of their favorite teams or players . . .

 

btw, is that a Peyton Manning poster or blanket in your avatar ?   . .. looks like a goodie either way . . .

It's a sheet full of Fatheads for the Wall in my Sports Den    (a gift from my son and daughter in law)

[21isSuperman]

So if I understand this correctly, it doesn't save the Pats any cap space (in fact, it costs them $1 mil more against the cap), it just lets Kraft save his own money.  Instead of having to give Brady $24 mil, he only gives it to Brady if Brady gets hurt.  Is that right?

[Superman]

So if I understand this correctly, it doesn't save the Pats any cap space (in fact, it costs them $1 mil more against the cap), it just lets Kraft save his own money.  Instead of having to give Brady $24 mil, he only gives it to Brady if Brady gets hurt.  Is that right?

 

Only exception is the bolded. The $24m wasn't going to Brady, yet. It was to be placed in escrow. Now, it doesn't have to be placed in escrow.

 

So essentially, Brady got a $1m/year raise in exchange for agreeing to allow Kraft to hold his cash for a while. No material difference, other than the raise.

[21isSuperman]

Only exception is the bolded. The $24m wasn't going to Brady, yet. It was to be placed in escrow. Now, it doesn't have to be placed in escrow.

 

So essentially, Brady got a $1m/year raise in exchange for agreeing to allow Kraft to hold his cash for a while. No material difference, other than the raise.

Sorry, I worded that poorly.  Instead of the $24 mil being based on Brady's performance, it is now based on his health (ie. he gets it if he's hurt)?

[Gramz]

Sorry, I worded that poorly.  Instead of the $24 mil being based on Brady's performance, it is now based on his health (ie. he gets it if he's hurt)?

wow   seriously..??  How can I get someone to guarantee me some money if I get hurt..??  

[BOTT]

$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

He obviously got some of those miracle shakes from Chip Kelly.

[ViriLudant]

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.

Oh please . They worship Peyton on ESPN 24/7, and I never see you complain.

Second of all, ESPN couldn't care less about the Patriots, primarily because the Patriots ignore them. The Patriots and their fans loathe ESPN. Think otherwise? Poll the fans here.

Third, please name NFL players who have taken the risk to change their contract so that they may lose guaranteed money. Please provide that list. Because that is what Brady did. Will he lose that money? Probably not, but please do not tell me that most NFL players will do that.

[ViriLudant]

This isn't freeing up cap space

So?

It frees up $24 mil in signing bonuses.

[GoPats]

 

They're ALL overpaid in my opinion.

 

Compared to us for sure.

 

But compared to MLB and NBA players? You could almost consider football players "underpaid." They deserve to make more than those other guys! (IMO, of course!) 

[Superman]

Sorry, I worded that poorly.  Instead of the $24 mil being based on Brady's performance, it is now based on his health (ie. he gets it if he's hurt)?

 

Yeah, his salaries for 2015-17 were fully guaranteed (skill and injury). Now those salaries are partially guaranteed (for injury only).

 

If the salaries remained as fully guaranteed, the Patriots would have had to place that full amount into escrow now. Now they don't have to.

[GoPats]

Yeah, his salaries for 2015-17 were fully guaranteed (skill and injury). Now those salaries are partially guaranteed (for injury only).

 

If the salaries remained as fully guaranteed, the Patriots would have had to place that full amount into escrow now. Now they don't have to.

 

Exactly. One of the interesting aspects is that they could conceivably cut him without incurring any cap penalties. But that would be nuts, given the value of his $8M-$9M-$10M "modest" salaries the next three years.

 

As naive as it sounds, I think the simplest explanation is the right one here. I honestly don't think Brady cares all that much about the money. He knows he's set for life no matter what and that's good enough. I think he'd genuinely like to see them field a competitive team until he retires and he's trying to make it easier for them to do that. 

[jvan1973]

So?

It frees up $24 mil in signing bonuses.

which means nothing. I'm sure kraft could come up with what ever he would need if this wasn't an option

[Superman]

Exactly. One of the interesting aspects is that they could conceivably cut him without incurring any cap penalties. But that would be nuts, given the value of his $8M-$9M-$10M "modest" salaries the next three years.

 

As naive as it sounds, I think the simplest explanation is the right one here. I honestly don't think Brady cares all that much about the money. He knows he's set for life no matter what and that's good enough. I think he'd genuinely like to see them field a competitive team until he retires and he's trying to make it easier for them to do that. 

 

There would be a cap penalty to release him. A total of $18m from his prorated signing bonus which was paid two years ago.

 

However, it would be nuts to release him. There's really no risk for him. If he gets hurt, he still gets paid. If they did get rid of him for "skill," he'd get a dozen offers at $20m+/year.

 

I don't see how this adjustment is about Brady's viewpoint on the money. It doesn't affect his cash flow at all right now. As of Week 1, it increases his pay. 

 

This deal makes cash flow easier for the Pats this offseason, presumably for signing bonuses to guys like Revis. We'll see what they do with it. When Brady did his restructure two years ago, it was presumed that the Pats would keep Welker, and they didn't. I definitely agree that he wants them to do all they can to compete for the rest of his career. This makes it easier from a cash flow perspective. Good for him, good for them.

 

I just wish I didn't have to hear people talking about how Saint Brady has surrendered all his worldly possessions on behalf of the greater good of mankind. Lots of people with microphones in front of their faces either don't understand what happened, or are content to lie about it. It's annoying.

[Superman]

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

 

I believe there's a restriction that says a player's contract can only be restructured once within 12 months. If that applies here, then Brady will be playing at least 2015 under these terms.

[-JJ-]

 

 

I just wish I didn't have to hear people talking about how Saint Brady has surrendered all his worldly possessions on behalf of the greater good of mankind.  

Of course he did. He's the REAL Superman

[Superman]

Of course he did. He's the REAL Superman

 

One of your brethren says he was born in a manger... I assume he was being silly, but I had to turn off ESPN Radio on the way to work this morning because they were drooling all over the microphones. 

[GoPats]

There would be a cap penalty to release him. A total of $18m from his prorated signing bonus which was paid two years ago.

 

However, it would be nuts to release him. There's really no risk for him. If he gets hurt, he still gets paid. If they did get rid of him for "skill," he'd get a dozen offers at $20m+/year.

 

I don't see how this adjustment is about Brady's viewpoint on the money. It doesn't affect his cash flow at all right now. As of Week 1, it increases his pay. 

 

 

Huh, thanks... must be reading some bad sources here! A couple of articles I saw mentioned the whole thing about making it possible for them to release him without penalties. But I'm sure you're right. 

 

As for his view on money, I was referring only to his salaries over the next three years. I realize that he's actually making a little more with this rearrangement. People speculated that these years on his deal were "place holders" and that there's no way Brady would play out the contract. But it sure looks like that's the plan. And as you pointed out, he'd have a ton of offers if he was on the open market. They're getting him at a bargain price, unless he drops off steeply. 

[Superman]

Huh, thanks... must be reading some bad sources here! A couple of articles I saw mentioned the whole thing about making it possible for them to release him without penalties. But I'm sure you're right. 

 

As for his view on money, I was referring only to his salaries over the next three years. I realize that he's actually making a little more with this rearrangement. People speculated that these years on his deal were "place holders" and that there's no way Brady would play out the contract. But it sure looks like that's the plan. And as you pointed out, he'd have a ton of offers if he was on the open market. They're getting him at a bargain price, unless he drops off steeply. 

 

It reduces the potential cap penalty for releasing him from $42m down to $18m. Still prohibitive. So that's a half-truth, at least. We're making progress...

 

I posted a bit ago that I don't believe he can restructure again for 12 months. So at the very least, he'll play 2015 for $8m, which is less than the other top QBs will receive in cash this season (some of those QBs didn't receive a $30m signing bonus, though, so it's not quite as lopsided as it might seem). I won't call it noble, but it's definitely a bargain.

[GoPats]

I won't call it noble, but it's definitely a bargain.

 

Yes, don't get me wrong... I'm not trying to make him a saint here. It's just that in a league where guys constantly go for top dollar over all else (and I'm not even saying that's wrong, really), it's kind of cool to see a guy of his stature playing on an undervalued contract. 

[Superman]

Another tidbit: I think the CBA only requires a team to place 75% of the value of the guaranteed salary into escrow. That's $18m, not $24m. 

 

Again, nothing to sneeze at.

[Valpo2004]

$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

 

Tried and true trope of giving the wife credit for everything the husband does.  Shoot most husbands do this.  

[21isSuperman]

wow   seriously..??  How can I get someone to guarantee me some money if I get hurt..??  

Interestingly, you seem some professionals get insurance in case they get hurt.  For example, I believe it's fairly common for surgeons to get their hands insured in case they have an injury and can't perform surgeries anymore.

 

Many teams in many leagues put these clauses into contracts.  I believe Islanders goalie Rick DiPietro signed some ridiculous contract many years ago (something like 10 years, $120 mil) and there was a clause in the contract that if he got a career ending injury, the Islanders would pay him the entire contract.

[amfootball]

I believe there's a restriction that says a player's contract can only be restructured once within 12 months. If that applies here, then Brady will be playing at least 2015 under these terms.

That's interesting. So I guess he is playing for $14 mil in 2015.

[Superman]

That's interesting. So I guess he is playing for $14 mil in 2015.

 

Assuming this qualifies as a restructure, and I believe it does, since his salaries changed. If it was just a change of the guarantees, that might have been different.

[jvan1973]

Interestingly, you seem some professionals get insurance in case they get hurt. For example, I believe it's fairly common for surgeons to get their hands insured in case they have an injury and can't perform surgeries anymore.

Many teams in many leagues put these clauses into contracts. I believe Islanders goalie Rick DiPietro signed some ridiculous contract many years ago (something like 10 years, $120 mil) and there was a clause in the contract that if he got a career ending injury, the Islanders would pay him the entire contract.

J Lo insured her butt for several million. Im not sure what she thought might happen to it

[southwest1]

Oh please . They worship Peyton on ESPN 24/7, and I never see you complain.

Second of all, ESPN couldn't care less about the Patriots, primarily because the Patriots ignore them. The Patriots and their fans loathe ESPN. Think otherwise? Poll the fans here.

Third, please name NFL players who have taken the risk to change their contract so that they may lose guaranteed money. Please provide that list. Because that is what Brady did. Will he lose that money? Probably not, but please do not tell me that most NFL players will do that.

Show me another ESPN clip where broadcasters literally tripped over themselves breaking their hands patting themselves on the back like they had something to do with it VL. I'd love to see it actually. Trey Wingo might sing Peyton's praises for taking less money up front, but not to that "school girl crush" Brady level in the pervious clip. 

 

You might see Jeff Saturday do it a little because he's got blinders on when it comes to Manning objectivity I will readily admit. If you can tell me with a straight face that ESPN doesn't think Brady walks on water then you're in the wrong profession VL & you need to join the CIA doing espionage & black ops work. Please yourself....

 

Let me also remind you who went after Peyton for his inability to take responsibility for his role in losing the SB to the Seahawks...So drop this crap that I idolize 18...What a crock of you know what. Do I like him? Yes. Can I be critical of him & his failure to win SBs? Yes. 

 

Brady restructured his deal to keep players like Revis in place. It's a selfless move on his part yes, but the way ESPN raves about it, you'd think he just devised a cure for cancer or something. So over the top & ridiculous that it's almost a comedy routine & you know VL. Let's get real...

 

" The Patriots and their fans loathe ESPN. Think otherwise? Poll the fans here." 

 

If you going to claim that most people hate ESPN, wouldn't logic suggest that no one would read an thread with an ESPN video in it? This thread proves otherwise. Also, it is possible for NE fans to detest ESPN & still not change the fact that those 2 broadcasters in that clip were displaying full throttle Brady hero worship. 

 

Again, I have no issue with Brady himself just how the act of restructuring his contract was overzealously interpreted by ESPN. 

[amfootball]

Show me an ESPN clip where broadcasters literally tripped over themselves breaking their hands patting themselves on the back like they had something to do with it VL. I'd love to see it actually. 

 

You might see Jeff Saturday do it a little because he's got blinders on when it comes to Manning objectivity I will readily admit. If you can tell me with a straight face that ESPN doesn't think Brady walks on water then you're in the wrong profession VL & you need to join the CIA doing espionage. Please yourself....

 

Let me also remind you who went after Peyton for his inability to take responsibility for his role in losing the SB to the Seahawks...So drop this crap that I idolize 18...What a crock of you know what. Do I like him? Yes. Can I be critical of him & his failure to win SBs? Yes. 

 

Brady restructured his deal to keep players like Revis in place. It's a selfless move on his part yes, but the way ESPN raves about it, you'd think he just devised a cure for cancer or something. So over the top & ridiculous that it's almost a comedy routine & you know VL. Let's get real...

You might want to turn ESPN off SW. Both Manning and Brady are sacred cows on that network.

[dgambill]

wow   seriously..??  How can I get someone to guarantee me some money if I get hurt..??  

You can...its called AFLAC lol!!

[Yehoodi]

There would be a cap penalty to release him. A total of $18m from his prorated signing bonus which was paid two years ago.

 

However, it would be nuts to release him. There's really no risk for him. If he gets hurt, he still gets paid. If they did get rid of him for "skill," he'd get a dozen offers at $20m+/year.

 

I don't see how this adjustment is about Brady's viewpoint on the money. It doesn't affect his cash flow at all right now. As of Week 1, it increases his pay. 

 

This deal makes cash flow easier for the Pats this offseason, presumably for signing bonuses to guys like Revis. We'll see what they do with it. When Brady did his restructure two years ago, it was presumed that the Pats would keep Welker, and they didn't. I definitely agree that he wants them to do all they can to compete for the rest of his career. This makes it easier from a cash flow perspective. Good for him, good for them.

 

I just wish I didn't have to hear people talking about how Saint Brady has surrendered all his worldly possessions on behalf of the greater good of mankind. Lots of people with microphones in front of their faces either don't understand what happened, or are content to lie about it. It's annoying.

 

I hear where you are coming from but we need to be fair and assess things . . . not that Brady's talent is going to drop off but if it does and he does not maintain the level of a highly paid QB, he has given away money that was guaranteed him a few years ago . . . not saying this will happen, but it might . . .

 

In addition, if this was such a small thing and such a big benefit, it should easy for any of the other football players to do the same, correct?  lets see how many of the football players pull of this "its nothing for the player, great gain for team" deal . . . perhaps not the ones on a rookie contract making 1.2 mil per year might want to do this, but there are many vets that could do this . ..  

 

Also, him doing this is essentially an extension of what he has already done by having his yearly salary in the last few years to be lower than what it might be otherwise.

 

Lastly, altho I do not see it happening, it does provide options for the pats if they want to move Brady.  A HOF QB under a contract for under 10 million with no skill guarantee makes for a nice tradable commodity as the team receiving him will have a HOF QB without being saddled with a skill guarantee, which will be very attractive to teams if they are concerned about bringing on a late 30s QB.

[dgambill]

Not sure how this helps the team out that much. I mean his cap goes up a million. We are basically to assume that Kraft didn't have the 18-24 million to give out in signing bonuses......the billionaire?? For an organization that is in a huge market that is raking in the cash hand over fist I find it hard to believe Kraft really needed that money. Doesn't even mean it gets spent on football operations...perhaps Kraft wants to put in a bid to own another sports franchise or just wants to invest it....making more than the money he is paying out to Brady each year. Honestly I just think this is an owner very comfortable with his player and a player very comfortable with the owner/team. Kraft gets to use his money...Brady still gets his money...win/win but nothing here states that the money will be used for signing bonuses etc...maybe your getting some new seat cushions in the stadium?? All in all Brady has been a great qb and is worth several times over what he has been paid for that organization.....given the buddy buddy nature I see him a part of that organization for many decades to come.

[Superman]

I hear where you are coming from but we need to be fair and assess things . . . not that Brady's talent is going to drop off but if it does and he does not maintain the level of a highly paid QB, he has given away money that was guaranteed him a few years ago . . . not saying this will happen, but it might . . .

 

In addition, if this was such a small thing and such a big benefit, it should easy for any of the other football players to do the same, correct?  lets see how many of the football players pull of this "its nothing for the player, great gain for team" deal . . . perhaps not the ones on a rookie contract making 1.2 mil per year might want to do this, but there are many vets that could do this . ..  

 

Also, him doing this is essentially an extension of what he has already done by having his yearly salary in the last few years to be lower than what it might be otherwise.

 

Lastly, altho I do not see it happening, it does provide options for the pats if they want to move Brady.  A HOF QB under a contract for under 10 million with no skill guarantee makes for a nice tradable commodity as the team receiving him will have a HOF QB without being saddled with a skill guarantee, which will be very attractive to teams if they are concerned about bringing on a late 30s QB.

 

1) If Brady's play drops off, he's still a bargain at $9m/year for an average to above average QB. And his dead money is still prohibitive.

 

2) Pretty much no other players, aside from top 20 first round draft picks since 2011, have fully guaranteed contracts. So, no, there are virtually NO other vets who could do this. Brady is the only one who had a fully guaranteed contract.

 

3) You're basically say that by Brady getting a raise, he's taking a pay reduction. Does not compute. This is a matter of contract verbiage and a pay raise.

 

4) We all know it will be a cold day in hell before the Pats trade or release Tom Brady. Unless he's charged with murder...