Brady's new contract structured to save him 2 million him if gets 4 game suspension

[bayone]

The contract, via terms reported by CBS Sports NFL Insider Jason La Canfora, will also protect him in the event he is suspended by the NFL for Deflategate.

Brady previously had a base salary of $9 million for 2016 but now, per La Canfora, will have just a $1 million salary for this coming season. The court system is still dealing with the NFL's appeal of Brady's previous victory.

As noted by the Boston Globe's Ben Volin, a four-game suspension now would only cost Brady a couple hundred thousand in lost salary, instead of $2 million plus

http://www.cbssports.com/nfl/eye-on-football/25511457/tom-bradys-new-contract-protects-him-from-deflategate-suspensions

[BullsColtsFan1]

I read this as well. My question is.  Why do this?  I understand wanting to get paid but if your innocent, you should be proved innocent in the court of law correct?  Personally I think this points at him even more.  That's just my opinion though. I guess we'll see how it all plays out in the next few months or years lol.

[Yehoodi]

Patriot Way baby. .

[crazycolt1]

3 minutes ago, Yehoodi said:

Patriot Way baby. .

Of coarse it is.

[shakedownstreet]

< insert vile diatribe about patriots here >

[Gramz]

Well, I see this as pretty smart negotiations on Brady's part.   He's getting a Pretty Hefty Raise, and it's structured in a way that he really won't lose much $$$  when his suspension takes place.

 

Maybe now this can put to rest all the talk about him being selfless and sacrificing his salary for the team.

[Yehoodi]

7 minutes ago, crazycolt1 said:

Of coarse it is.

 

 . . . . just one of them unintentionally side benefits . . .  funny how that is all shaping up . . . who would of thunked it.

 

In all seriousness, 2 million verses 250K, is not the end of the world, and its any missed games that is more important in the grand scheme of things.   Plus Brady wants to play for more years.   

 

It also creates dead cap hits of 21 mil for '18 and '19, so my guess is that the pats want him to stick around a while for the team.

[Yehoodi]

10 minutes ago, Gramz said:

Well, I see this as pretty smart negotiations on Brady's part.   He's getting a Pretty Hefty Raise, and it's structured in a way that he really won't lose much $$$  when his suspension takes place.

 

Maybe now this can put to rest all the talk about him being selfless and sacrificing his salary for the team.

 

Well actually this contract really does not change the discount he gave the team in '15, '16 and '17, as the money is basically the same for those years, but just adds that he will be making 22 mil in '18 and '19, which may be middle of the road money at that time.

[Gramz]

14 minutes ago, Yehoodi said:

 

Well actually this contract really does not change the discount he gave the team in '15, '16 and '17, as the money is basically the same for those years, but just adds that he will be making 22 mil in '18 and '19, which may be middle of the road money at that time.

IF he plays that long.     I personally don't see it.

[Nadine]

Instead of making $9 mil in 2016, he's making $1 mil

Then how much in 2017?

[Gramz]

4 minutes ago, Nadine said:

Instead of making $9 mil in 2016, he's making $1 mil

Then how much in 2017?

Don't forget his $28 MIL  Bonus

 

Tom Brady's two-year contract extension through 2019 includes a $28 million signing bonus ...

[Nadine]

Just now, Gramz said:

Don't forget his $28 MIL  Bonus

what bonus?

I have a hard time understanding these contracts but it sounds like $1 million / year in 16 and 17 and $14 mil per year for the next 2 years

So in base pay $30 million dollars instead of $36 million? So the pats save 6 million in base pay?

[Gramz]

5 minutes ago, Nadine said:

what bonus?

I have a hard time understanding these contracts but it sounds like $1 million / year in 16 and 17 and $14 mil per year for the next 2 years

So in base pay $30 million dollars instead of $36 million? So the pats save 6 million in base pay?

The deal, which includes $41 million in "new money," has officially been filed with the league and breaks down as follows:

Signing bonus: $28 million

2016

Base salary: $1 million

Cap hit: $14 million

2017

Base salary: $1 million

Cap hit: $14 million

2018

Base salary: $14 million

Roster bonus: $1 million (paid per game)

Cap hit: $22 million

2019

Base salary: $14 million

Roster bonus: $1 million (paid per game)

Cap hit: $22 million

[Nadine]

6 minutes ago, Gramz said:

The deal, which includes $41 million in "new money," has officially been filed with the league and breaks down as follows:

Signing bonus: $28 million

2016

Base salary: $1 million

Cap hit: $14 million

2017

Base salary: $1 million

Cap hit: $14 million

2018

Base salary: $14 million

Roster bonus: $1 million (paid per game)

Cap hit: $22 million

2019

Base salary: $14 million

Roster bonus: $1 million (paid per game)

Cap hit: $22 million

Roster bonus?

I'm lost but I'm sure all involved know what's going on and we'll hear about it

[Nadine]

ps, I WANT A $1000000 bonus

[bayone]

1 hour ago, Gramz said:

Well, I see this as pretty smart negotiations on Brady's part.   He's getting a Pretty Hefty Raise, and it's structured in a way that he really won't lose much $$$  when his suspension takes place.

 

Maybe now this can put to rest all the talk about him being selfless and sacrificing his salary for the team.

 

 

1 hour ago, Yehoodi said:

Patriot Way baby. .

 

1 hour ago, Yehoodi said:

 

 . . . . just one of them unintentionally side benefits . . .  funny how that is all shaping up . . . who would of thunked it.

 

In all seriousness, 2 million verses 250K, is not the end of the world, and its any missed games that is more important in the grand scheme of things.   Plus Brady wants to play for more years.   

 

It also creates dead cap hits of 21 mil for '18 and '19, so my guess is that the pats want him to stick around a while for the team.

as do I smart move by kraft & Brady , he gets paid & is protected as u never know about a ruling, its like an insurance encase things go adverse

 

True games missed matters, for him unlike us 2 miliion is not much, significant but nothing in the grand scheme of things for his family

[Gramz]

35 minutes ago, Nadine said:

Roster bonus?

I'm lost but I'm sure all involved know what's going on and we'll hear about it

The $28 Million is Guaranteed money.  It is guaranteed as soon as he signs the contract.   The way it is paid out  all depends on the details of the contract. Often it is paid out in installments, but it is all guaranteed. The salary is broken down per game amount (someone correct me if I'm wrong) He will get the $28 MIL whether he plays or not.

 

Bottom line..... Combined salary over next 4 years = $30 Mil.

Bonus = $28 Mil

 

Total: $58 Mil.

[21isSuperman]

48 minutes ago, Gramz said:

The deal, which includes $41 million in "new money," has officially been filed with the league and breaks down as follows:

Signing bonus: $28 million

2016

Base salary: $1 million

Cap hit: $14 million

2017

Base salary: $1 million

Cap hit: $14 million

2018

Base salary: $14 million

Roster bonus: $1 million (paid per game)

Cap hit: $22 million

2019

Base salary: $14 million

Roster bonus: $1 million (paid per game)

Cap hit: $22 million

 

41 minutes ago, Nadine said:

Roster bonus?

I'm lost but I'm sure all involved know what's going on and we'll hear about it

I may not be the best person to explain this, but I'll explain what I understand of it.  He gets a $28 mil signing bonus, which means he gets that money once he signs the contract extension (thus, signing bonus).  The roster bonus is given if he makes the final 53 after training camp, which is all but guaranteed.  If (rather, when) Brady makes the roster, he'll get his roster bonus.  The base salary is paid per game.  If Brady's base salary was, for example, $16 mil and he was getting $1 mil per game he played, he could lose $4 mil if he gets suspended for 4 games.  However, with the way it's structured now, it's $1 mil that's distributed evenly among the 16 games, so he gets $62 500 per week.  If he were suspended for 4 weeks, he'd lose $250 000.

 

The signing bonus is divided evenly among the years of the extension, I believe.  The roster bonus is paid each year and could vary each year.  Cap hit = base salary + signing bonus + roster bonus.  If he were to be cut, his signing bonus would still be paid to him and would count against their cap.

[Yehoodi]

1 hour ago, Gramz said:

IF he plays that long.     I personally don't see it.

 

He may not, but if he does not play in '18 and '19 the pats will have to take his dead cap space against their cap.  So the pats are hoping he is still around in those two years or will have wasted cap space taken up. 

 

It does not help the pats if Brady plays the next two years and is cut or retires.

[Yehoodi]

1 hour ago, bayone said:

 

 

 

as do I smart move by kraft & Brady , he gets paid & is protected as u never know about a ruling, its like an insurance encase things go adverse

 

True games missed matters, for him unlike us 2 miliion is not much, significant but nothing in the grand scheme of things for his family

 

I think the 2 mil is chump change and maybe is a shot at the NFL how they structured the contact. 

 

But like I mentioned in my prior post, it does not help the pats if Brady retires or is cut after two years.  They have dead cap space that has to be accounted for in '18 and '19 if Brady stops playing in two years.   So it would be a benefit if he plays the 4 years.

[Nadine]

39 minutes ago, Yehoodi said:

'18 and '19 the pats will have to take his dead cap space against their cap

Not sure I'll understand but could you explain what dead cap space is and why it's there if he's not?

[OffensivelyPC]

1 hour ago, 21isSuperman said:

 

I may not be the best person to explain this, but I'll explain what I understand of it.  He gets a $28 mil signing bonus, which means he gets that money once he signs the contract extension (thus, signing bonus).  The roster bonus is given if he makes the final 53 after training camp, which is all but guaranteed.  If (rather, when) Brady makes the roster, he'll get his roster bonus.  The base salary is paid per game.  If Brady's base salary was, for example, $16 mil and he was getting $1 mil per game he played, he could lose $4 mil if he gets suspended for 4 games.  However, with the way it's structured now, it's $1 mil that's distributed evenly among the 16 games, so he gets $62 500 per week.  If he were suspended for 4 weeks, he'd lose $250 000.

 

The signing bonus is divided evenly among the years of the extension, I believe.  The roster bonus is paid each year and could vary each year.  Cap hit = base salary + signing bonus + roster bonus.  If he were to be cut, his signing bonus would still be paid to him and would count against their cap.

Correct except the last paragraph is a bit confusing.  Signing bonuses are paid up front.  It's just how it hits the cap is prorated over the contract length up to 5 years.  I think that's what you meant, but it was worded such that I couldn't tell if you meant Tom was paid over the years of extension.  

 

Also, when Tom restructured he already had $6m in signing bonus attributed to the cap from his prior contract for both 2016 and 2017.  With the restructure, the new signing bonus gets prorated on top of what already is assigned against the cap for those 2 years - because it already applies.  Hence you have the odd signing bonus prorations of 2016 and 2017 as $13m and then the $7m for 2018 and 2019.  

[Yehoodi]

1 hour ago, Nadine said:

Not sure I'll understand but could you explain what dead cap space is and why it's there if he's not?

 

It is my understanding that dead cap space deals with money you prior paid the player that is being credited to a future date, well year.  As some point funds that that are deferred to future years caps for credit against those years has to be accounted for and can not be removed.  That is, you can not hide it.

 

Here, I believe all of his dead cap space is his signing bonus.  A signing bonus is paid up front but is prorated and divided equally amoug the years of the contract.  His signing bonus is $28 million and its a 4 year contract, so that 28 million is divided in 4 equal shares of 7 million dollars a share to be accounted towards the pats salary cap each year over the fours years.  So 7 mil in 2016, 7 mil in 2017, 7 mil in 2018 and 7 mil in 2019. 

 

As the pats have already compensated the player with the money and it has gone out the door to the player it has to be on the books and can not be take off regardless of what happens to the player.   Instead of taking a 28 mil cap hit this year, the signing bonus allows the team to take a 7 mil hit each of the 4 years.   

 

But the team can not cut him and then say I want to take the money off the cap.  The team has already allocated that cap space in future years once they give out a bonus and not taking the entire hit in year one, if for example, they paid Tom Brady 28 mil in extra salary in 2016 and not did the bonus.  

 

This makes sure that all of the money that is given to a player in the form of compensations is credited at some point. 

 

I hope this helps, I know its kind of long. 

 

Also, the dead cap space goes down over time.  If they cut him at the end of this year, there would be 3 full years to be account for so it would cost them 21 mil in dead space for 2017.

 

Here is a look Brady contract. 

 

http://www.spotrac.com/nfl/new-england-patriots/tom-brady/

 

There is some old dead cap space from the prior contract, which can be seen lower on the page.  12 mil in 2016 and 6 mil in 2017.

 

Also, the dead space starts are 28 mil in its first year and goes down by the 7 mil each year as you are accounting for that 7 million each year and thus comes off the books.  So the dead cap space for this 28 million signing bonus will be 28 mill in 2016, then 21 mill in 2017, then 14 mil in 2018, and then 7 mil in 2019. 
 

With the additions of the old cap money from '16 and '17 the over all dead space is 40 mil (28+12) in '16 and 27 mil (21 + 6) in '17.

 

[Nadine]

@Yehoodi Thank you. So, it's dead because is was paid in a prior year.  And it's old and dead if it is from a prior contract.

I would think that they couldn't carry it over from another contract though?  Can they say in a four  year contract that they are spreading the cap out over say......6 years.  And then when they do the next four year contract they still have 2 years from the previous contract?

[2006Coltsbestever]

It will be interesting to see if Tom can play 4 more years. He looks healthy as of now but that would put him playing until he's 42. In order to beat Peyton's TD's and Yards he will have to play 4 more years and have 3 Very Good to Great years.

[21isSuperman]

39 minutes ago, OffensivelyPC said:

Correct except the last paragraph is a bit confusing.  Signing bonuses are paid up front.  It's just how it hits the cap is prorated over the contract length up to 5 years.  I think that's what you meant, but it was worded such that I couldn't tell if you meant Tom was paid over the years of extension.  

 

Also, when Tom restructured he already had $6m in signing bonus attributed to the cap from his prior contract for both 2016 and 2017.  With the restructure, the new signing bonus gets prorated on top of what already is assigned against the cap for those 2 years - because it already applies.  Hence you have the odd signing bonus prorations of 2016 and 2017 as $13m and then the $7m for 2018 and 2019.  

Thanks for clarifying!  I'm not a cap expert, so your comments are helpful!

[Yehoodi]

1 hour ago, Nadine said:

@Yehoodi Thank you. So, it's dead because is was paid in a prior year.  And it's old and dead if it is from a prior contract.

I would think that they couldn't carry it over from another contract though?  Can they say in a four  year contract that they are spreading the cap out over say......6 years.  And then when they do the next four year contract they still have 2 years from the previous contract?

 

No that is not how I think it works.  Its kind of like a credit card.  You can pay $10.00 in cash now or charge it and pay $10.00 from next month's budget when you pay the bill. 

 

I believe the word is dead as the team has "killed" that portion of the cap and can not use it in that year.   So this 28 million dollar bonus has already, as of today, like the credit card, tied up $7 mill of the pats cap space for 2019.  So by signing that contact with that bonus the pats have used up 7 mil of cap space for the 2019 season.   So if Brady is not on the team in 2019 they, like having to pay a credit card, have tied up 7 mil of that years cap funds.  

 

This dead cap space will stay on the books regardless if they redue another contract with Brady (again you can not hide that 28 mil no matter what you do down the road).  The tied up cap space is contract specific and so if you do another contract you can have a second dead cap hit added on.

 

The signing bonus can only be prorated for the number of years of the contact that it is attached too and can not be changed, that I aware of, so any extensions in the future will not change the fact that there are 4 years of 7 mil each on the dead cap space.  Like the last contract you can see that there was 6 mil per year from the last extension.  And the 7 mil per year for this extension added on top of the old ones. 

 

Again, like the credit card.  You can make a charge of $10 and then $7, two separate transactions, and you have a total $17.00 against next month funds. 

 

Also, it is my understanding that the team is limited to dividing it up in the number of the years of the contract and can not prorated it for more or less years than the contact.  So here the pats can not do 3 years at 9.33 mil per year or do 7 years at 4 mil per year

 

The only thing that I am not sure of, if the player retires, traded or cut early in the contract does it accelerate all of the dead space to the year he was cut.  That is if Brady is cut after two years, do the pats have a 14 mil dead cap hit in 2018, or two 7 mil cap hits for both '18 and '19.   I think it is the latter but I am not 100% sure.  Either way, the 28 mil is going to be credited against the pats caps over the 4 year period.

 

Again sorry for being long, it tough for me to be concise with this stuff.

 

  

[King Colt]

I am glad I don't follow the money like most of you. I also don't care who is on what team and how many millions they "earn". I just want my team to win. Guess I'm old school and that is just all right by me.

 

[ReMeDy]

5 hours ago, 2006Coltsbestever said:

It will be interesting to see if Tom can play 4 more years. He looks healthy as of now but that would put him playing until he's 42. In order to beat Peyton's TD's and Yards he will have to play 4 more years and have 3 Very Good to Great years.

 

Oh, I'm sure he can play until he's 42, but sadly for Brady, the Patriots will trade him when he's 40 and some gullible team will snag him up for a 1st rounder, minimum. That's why the Patriots structured his contract to age 42 to make the trade offer more attractive. It's the Patriot way to trade aging veterans. No one is exempt, not even Brady.

 

If Belichick retires before then, that could also result in a Brady trade, as they'll want to wipe the slate clean with a new HC and QB tandem.

[OffensivelyPC]

4 hours ago, Yehoodi said:

 

No that is not how I think it works.  Its kind of like a credit card.  You can pay $10.00 in cash now or charge it and pay $10.00 from next month's budget when you pay the bill. 

 

I believe the word is dead as the team has "killed" that portion of the cap and can not use it in that year.   So this 28 million dollar bonus has already, as of today, like the credit card, tied up $7 mill of the pats cap space for 2019.  So by signing that contact with that bonus the pats have used up 7 mil of cap space for the 2019 season.   So if Brady is not on the team in 2019 they, like having to pay a credit card, have tied up 7 mil of that years cap funds.  

 

This dead cap space will stay on the books regardless if they redue another contract with Brady (again you can not hide that 28 mil no matter what you do down the road).  The tied up cap space is contract specific and so if you do another contract you can have a second dead cap hit added on.

 

The signing bonus can only be prorated for the number of years of the contact that it is attached too and can not be changed, that I aware of, so any extensions in the future will not change the fact that there are 4 years of 7 mil each on the dead cap space.  Like the last contract you can see that there was 6 mil per year from the last extension.  And the 7 mil per year for this extension added on top of the old ones. 

 

Again, like the credit card.  You can make a charge of $10 and then $7, two separate transactions, and you have a total $17.00 against next month funds. 

 

Also, it is my understanding that the team is limited to dividing it up in the number of the years of the contract and can not prorated it for more or less years than the contact.  So here the pats can not do 3 years at 9.33 mil per year or do 7 years at 4 mil per year

 

The only thing that I am not sure of, if the player retires, traded or cut early in the contract does it accelerate all of the dead space to the year he was cut.  That is if Brady is cut after two years, do the pats have a 14 mil dead cap hit in 2018, or two 7 mil cap hits for both '18 and '19.   I think it is the latter but I am not 100% sure.  Either way, the 28 mil is going to be credited against the pats caps over the 4 year period.

 

Again sorry for being long, it tough for me to be concise with this stuff.

 

  

If you retire, it's like being cut. You forego the P5 salary and roster bonus (provided said roster bonus hasn't already guaranteed, i.e. retirement occurs after bonus date), but still on the hook for guaranteed monies. The Post-June 1 designation also applies, but practically speaking, guys retire early in the new league year if they retire at all because, why work for free? That or teams cut them before certain guarantees kick in.

[Yehoodi]

9 hours ago, OffensivelyPC said:

If you retire, it's like being cut. You forego the P5 salary and roster bonus (provided said roster bonus hasn't already guaranteed, i.e. retirement occurs after bonus date), but still on the hook for guaranteed monies. The Post-June 1 designation also applies, but practically speaking, guys retire early in the new league year if they retire at all because, why work for free? That or teams cut them before certain guarantees kick in.

 

Yes, I think you are correct that only the guarantee bonus values are kept in the dead cap space.  Thanks for adding that point I forgot.

[Yehoodi]

15 hours ago, Nadine said:

@Yehoodi Thank you. So, it's dead because is was paid in a prior year.  And it's old and dead if it is from a prior contract.

 

 

Nadine, just wanted to add one more thing, my points on Brady's dead cap space being around is that those monies are guaranteed, as was the last roster bonuses.   I forgot to mention this point.   OffensivelyPC, mentioned this addition in his recent post.

[Nadine]

2 minutes ago, Yehoodi said:

 

Nadine, just wanted to add one more thing, my points on Brady's dead cap space being around is that those monies are guaranteed, as was the last roster bonuses.   I forgot to mention this point.   OffensivelyPC, mentioned this addition in his recent post.

I saw that. Thanks

I should have been an accountant, then this would be easier to follow

[Yehoodi]

7 minutes ago, Nadine said:

I saw that. Thanks

I should have been an accountant, then this would be easier to follow

 

Yes it takes time to figure these things out.  . 

 

Really only in the last year or two have I began to get at least a little grip on things regarding the salary cap and really only in a few areas.  

[chad72]

20 hours ago, Yehoodi said:

 

He may not, but if he does not play in '18 and '19 the pats will have to take his dead cap space against their cap.  So the pats are hoping he is still around in those two years or will have wasted cap space taken up. 

 

It does not help the pats if Brady plays the next two years and is cut or retires.

 

Yeah, you better hope he does not suffer a Peyton like decline due to injuries like Peyton started to last year in the next 2 years. It is hard to predict the future, just have to keep hoping.

[CanuckColtsFan]

Is anyone else a little mad that Brady only has a 14mil cap hit. At the level he plays it is an incredible advantage for the Pats. How does the NFL know he's not getting money through other channels? I think salary cap is probably  the biggest hurdle for teams that win supper bowls. Brady could be counting 7 mil more towards the cap easily if he was getting paid market. Brock osweiler makes more cash. The Colts could keep Freeman with that leftover cash. In FA it could be the difference in getting a serviceable player and an elite one. Just kinda shady from a team that has some shade cast.

 

 

 

[chad72]

2 minutes ago, CanuckColtsFan said:

Is anyone else a little mad that Brady only has a 14mil cap hit. At the level he plays it is an incredible advantage for the Pats. How does the NFL know he's not getting money through other channels? I think salary cap is probably  the biggest hurdle for teams that win supper bowls. Brady could be counting 7 mil more towards the cap easily if he was getting paid market. Brock osweiler makes more cash. The Colts could keep Freeman with that leftover cash. In FA it could be the difference in getting a serviceable player and an elite one. Just kinda shady from a team that has some shade cast.

 

They just keep pushing money to the future for Brady, do not restructure or renegotiate (Gronk will be a steal deal the next 2 years), given their SB equity from the early 2000s, and that is how they are able to sustain what they do.

[2006Coltsbestever]

22 minutes ago, CanuckColtsFan said:

Is anyone else a little mad that Brady only has a 14mil cap hit. At the level he plays it is an incredible advantage for the Pats. How does the NFL know he's not getting money through other channels? I think salary cap is probably  the biggest hurdle for teams that win supper bowls. Brady could be counting 7 mil more towards the cap easily if he was getting paid market. Brock osweiler makes more cash. The Colts could keep Freeman with that leftover cash. In FA it could be the difference in getting a serviceable player and an elite one. Just kinda shady from a team that has some shade cast.

 

 

 

 Just glad Peyton and Eli owns them in the Playoffs when it really counts, right Pats fans? I mean Peyton is 3-2 against Brady in the Playoffs/3-1 when it really counts in the Title Game and Eli is 2-0 in the SB. So that is all that counts to me  What a choker that Brady is, cant even beat the Manning's when it counts LOL. Record of 1-5 when it counts. Facts are facts cant twist them. If Peyton gets ripped for his 9 1 and dones than Brady should be ripped by his crap play vs the Manning's.

[Yehoodi]

17 minutes ago, chad72 said:

 

Yeah, you better hope he does not suffer a Peyton like decline due to injuries like Peyton started to last year in the next 2 years. It is hard to predict the future, just have to keep hoping.

 

Yes time will tell.   Be nice if he could play out the whole fours years as it what I think the pats and Brady think will happen.

 

However, if for some reason he can not play past the next two years, the pats are only out of pocket $30.00 mil for this year and next, with signing bonus and 2 mil in salary in the next two years.

 

But both would want Brady to stick around for all four years.  

[Archer]

Sounds like they are planning for Brady's suspension, which is (almost) another admission of guilt from the Pats.