Details on Fletcher Cox contract

[Superman]

This contract is reported as a six year deal worth $103m, with $63m guaranteed. Okay, kind of. It's actually a seven year deal worth $110.3m, with $36.3m guaranteed at signing. We all know that they're counting new money (and new years), so it's six years, $103m, new. But the big, shocking figure is the guaranteed money. 

 

All details from Spotrac. http://www.spotrac.com/nfl/philadelphia-eagles/fletcher-cox/ (Looks like they have one error; the option bonus starts in 2017, per their notes, but they account for it starting in 2016. Not a big deal.) Cap hits go:

2016: $7.7m

2017: $9.4m

2018: $17.9m

2019: $22m

2020: $20.3m

2021: $16m

2022: $17.1m

 

The contract includes a $26m signing bonus, which is obviously guaranteed. There's also an option bonus due in 2017 (basically a second signing bonus), which is also guaranteed. His base salary in 2016 is $1.3m, and in 2017 is $3m. That's all guaranteed at signing, $36.3m. And that's it. 

 

So why are they reporting this as $63m guaranteed?

 

In March 2017, his 2018 salary and about half of his 2019 salary becomes guaranteed. That's another $19.25m. If they chose to cut him prior to March 2017, the total dead money would be about $29m, so that's obviously not going to happen, making that $19.25m effectively guaranteed (though not contractually guaranteed). In March 2018, the remaining $7.85m of his 2019 salary is guaranteed. If they chose to cut him prior to March 2018, the total dead money is still ~$28m. Again, not going to happen. It's not feasible to cut him until after 2019, at which point the total dead money is still ~$14m. At that point, he will have been paid $63.4m. The Eagles are also likely to restructure his contract at some point prior to 2019.

 

Effectively, the first four years of his contract are guaranteed, using staggered guarantees. He's very likely to be paid at least $63.4m, barring unforeseen circumstances (like him being suspended and his guarantees being voided, per the CBA).

 

So why not just fully guarantee all that money, no tricks? Because the CBA requires all guaranteed money to be placed in escrow in advance. That means that, per NFL rules, the Eagles not only have to pay Cox his $26m signing bonus, they also have to place an additional $10.3m in escrow. Next March, they have to place an additional $19.25m in escrow. This is a cash flow decision, not a guaranteed money decision.

 

Anyways, congratulations, Fletcher Cox. Great player. And congratulations, Mo Wilkerson (and Von Miller). This deal sets the baseline for yearly average for Wilkerson, and the baseline for guaranteed money for Miller. 

 

I'm probably the only one that interested in these contract details. But be ready for Luck's deal. When you hear $70m guaranteed or whatever the number is, know that the guarantees will gradually kick in.

[21isSuperman]

I've never heard of an option bonus before.  Does that mean he has a player option and if he picks it up, he gets the bonus?

[southwest1]

Nice break down of what Fletcher Cox contract actually entails Superman. So basically, when Von Miller's agent looks at what Philly gave Cox, the SB MVP might need to temper his payday enthusiasm in Denver just a tad after examining the fine print? It sure sounds like it. 

[Superman]

9 hours ago, 21isSuperman said:

I've never heard of an option bonus before.  Does that mean he has a player option and if he picks it up, he gets the bonus?

 

An option bonus means the team has an option. This is how Peyton Manning's 2011 contract was structured. The Colts had an option to pay him an additional $28m after the 2011 season, which was due by a certain date if he was still on the roster. They declined that option by releasing him. It's a way to break up the signing bonus over two payouts, and push some of the cap hit out an extra year.

 

In Cox's case, the option bonus is reported as guaranteed at signing. The way I understand it, in order for it to be an "option," it can't be guaranteed at signing. The guarantee has to kick in a few days later. So it's effectively guaranteed.

 

Option bonuses are not uncommon. They're typically used only for highly paid players.

[NewColtsFan]

11 hours ago, Superman said:

 

 

I'm probably the only one that interested in these contract details.  But be ready for Luck's deal. When you hear $70m guaranteed or whatever the number is, know that the guarantees will gradually kick in.

 

You're not quite the ONLY one!      

 

I think Luck's guaranteed number is going to be huge.    And much like Cox's,  will be staggered all over the place in creative ways allowing the contract to be interpreted as more "cap" friendly.     And I won't be the least bit surprised (In fact, I think you and I have predicted this in previous Luck discussions)  if Luck will want to restructure his deal,  not just once, but perhaps twice in his 6-years.     He'll get more guaranteed money in exchange for being able to lower the cap hit.    

 

Most top quarterbacks making that kind of money do that to help the team and help themselves.

 

[Coffeedrinker]

Superman, you're not the only one on the forum interested in this kind of stuff.  You are just the only one that understands it well enough to do a break down.

 

Great breakdown btw.

[dw49]

12 hours ago, southwest1 said:

Nice break down of what Fletcher Cox contract actually entails Superman. So basically, when Von Miller's agent looks at what Philly gave Cox, the SB MVP might need to temper his payday enthusiasm in Denver just a tad after examining the fine print? It sure sounds like it. 

 

 

Not really. The deal is essentially guaranteeing Cox over 60 mill. In less than a year , the guarantee goes from 36 mill to around 55 mill. It's only done this way so they don't have to escrow all the guarantee money. I guess if he has a career ending injury or big suspension in 2016 , he could lose some of the guarantee. This certainly doesn't weaken any Von Miller leverage. 

[southwest1]

1 hour ago, dw49 said:

 

 

Not really. The deal is essentially guaranteeing Cox over 60 mill. In less than a year , the guarantee goes from 36 mill to around 55 mill. It's only done this way so they don't have to escrow all the guarantee money. I guess if he has a career ending injury or big suspension in 2016 , he could lose some of the guarantee. This certainly doesn't weaken any Von Miller leverage. 

Contracts are all about the language spelled out therein. That was my actual point. Translation: Getting the largest payout in the shortest amount of time as an elite player. 

[csmopar]

18 hours ago, Superman said:

This contract is reported as a six year deal worth $103m, with $63m guaranteed. Okay, kind of. It's actually a seven year deal worth $110.3m, with $36.3m guaranteed at signing. We all know that they're counting new money (and new years), so it's six years, $103m, new. But the big, shocking figure is the guaranteed money. 

 

All details from Spotrac. http://www.spotrac.com/nfl/philadelphia-eagles/fletcher-cox/ (Looks like they have one error; the option bonus starts in 2017, per their notes, but they account for it starting in 2016. Not a big deal.) Cap hits go:

2016: $7.7m

2017: $9.4m

2018: $17.9m

2019: $22m

2020: $20.3m

2021: $16m

2022: $17.1m

 

The contract includes a $26m signing bonus, which is obviously guaranteed. There's also an option bonus due in 2017 (basically a second signing bonus), which is also guaranteed. His base salary in 2016 is $1.3m, and in 2017 is $3m. That's all guaranteed at signing, $36.3m. And that's it. 

 

So why are they reporting this as $63m guaranteed?

 

In March 2017, his 2018 salary and about half of his 2019 salary becomes guaranteed. That's another $19.25m. If they chose to cut him prior to March 2017, the total dead money would be about $29m, so that's obviously not going to happen, making that $19.25m effectively guaranteed (though not contractually guaranteed). In March 2018, the remaining $7.85m of his 2019 salary is guaranteed. If they chose to cut him prior to March 2018, the total dead money is still ~$28m. Again, not going to happen. It's not feasible to cut him until after 2019, at which point the total dead money is still ~$14m. At that point, he will have been paid $63.4m. The Eagles are also likely to restructure his contract at some point prior to 2019.

 

Effectively, the first four years of his contract are guaranteed, using staggered guarantees. He's very likely to be paid at least $63.4m, barring unforeseen circumstances (like him being suspended and his guarantees being voided, per the CBA).

 

So why not just fully guarantee all that money, no tricks? Because the CBA requires all guaranteed money to be placed in escrow in advance. That means that, per NFL rules, the Eagles not only have to pay Cox his $26m signing bonus, they also have to place an additional $10.3m in escrow. Next March, they have to place an additional $19.25m in escrow. This is a cash flow decision, not a guaranteed money decision.

 

Anyways, congratulations, Fletcher Cox. Great player. And congratulations, Mo Wilkerson (and Von Miller). This deal sets the baseline for yearly average for Wilkerson, and the baseline for guaranteed money for Miller. 

 

I'm probably the only one that interested in these contract details. But be ready for Luck's deal. When you hear $70m guaranteed or whatever the number is, know that the guarantees will gradually kick in.

 

 

still a HUGE sum.  and now Von Miller saying he will sit out and not play on the tag this year

[dw49]

2 hours ago, southwest1 said:

Contracts are all about the language spelled out therein. That was my actual point. Translation: Getting the largest payout in the shortest amount of time as an elite player. 

 

Cox is receiving 55.54 million in guarantees after the first 9 months of his contract. This does not in any way shape or from give Miller less leverage. Just the opposite is the case. So if your "actual point" is something different than  "So basically, when Von Miller's agent looks at what Philly gave Cox, the SB MVP might need to temper his payday enthusiasm in Denver just a tad after examining the fine print? It sure sounds like it. "  let me know what you mean.

[dw49]

20 hours ago, Superman said:

This contract is reported as a six year deal worth $103m, with $63m guaranteed. Okay, kind of. It's actually a seven year deal worth $110.3m, with $36.3m guaranteed at signing. We all know that they're counting new money (and new years), so it's six years, $103m, new. But the big, shocking figure is the guaranteed money. 

 

All details from Spotrac. http://www.spotrac.com/nfl/philadelphia-eagles/fletcher-cox/ (Looks like they have one error; the option bonus starts in 2017, per their notes, but they account for it starting in 2016. Not a big deal.) Cap hits go:

2016: $7.7m

2017: $9.4m

2018: $17.9m

2019: $22m

2020: $20.3m

2021: $16m

2022: $17.1m

 

The contract includes a $26m signing bonus, which is obviously guaranteed. There's also an option bonus due in 2017 (basically a second signing bonus), which is also guaranteed. His base salary in 2016 is $1.3m, and in 2017 is $3m. That's all guaranteed at signing, $36.3m. And that's it. 

 

So why are they reporting this as $63m guaranteed?

 

In March 2017, his 2018 salary and about half of his 2019 salary becomes guaranteed. That's another $19.25m. If they chose to cut him prior to March 2017, the total dead money would be about $29m, so that's obviously not going to happen, making that $19.25m effectively guaranteed (though not contractually guaranteed). In March 2018, the remaining $7.85m of his 2019 salary is guaranteed. If they chose to cut him prior to March 2018, the total dead money is still ~$28m. Again, not going to happen. It's not feasible to cut him until after 2019, at which point the total dead money is still ~$14m. At that point, he will have been paid $63.4m. The Eagles are also likely to restructure his contract at some point prior to 2019.

 

Effectively, the first four years of his contract are guaranteed, using staggered guarantees. He's very likely to be paid at least $63.4m, barring unforeseen circumstances (like him being suspended and his guarantees being voided, per the CBA).

 

So why not just fully guarantee all that money, no tricks? Because the CBA requires all guaranteed money to be placed in escrow in advance. That means that, per NFL rules, the Eagles not only have to pay Cox his $26m signing bonus, they also have to place an additional $10.3m in escrow. Next March, they have to place an additional $19.25m in escrow. This is a cash flow decision, not a guaranteed money decision.

 

Anyways, congratulations, Fletcher Cox. Great player. And congratulations, Mo Wilkerson (and Von Miller). This deal sets the baseline for yearly average for Wilkerson, and the baseline for guaranteed money for Miller. 

 

I'm probably the only one that interested in these contract details. But be ready for Luck's deal. When you hear $70m guaranteed or whatever the number is, know that the guarantees will gradually kick in.

 

 

A few people are reading this to mean that the contract was not a "blockbuster" due to the guaranteed money issue. It's over 55 million in the first 9 months. That says it all....or at least most of it.

 

You are correct with everything you pointed out but some are misunderstanding a bit. This is really not a "team friendly deal" as "all" the guarantees are not written in stone. It's like you said... are of an accounting issue. This is a another big win for Cox and the great players that are ready to sign new deals.

[southwest1]

38 minutes ago, dw49 said:

 

Cox is receiving 55.54 million in guarantees after the first 9 months of his contract. This does not in any way shape or from give Miller less leverage. Just the opposite is the case. So if your "actual point" is something different than  "So basically, when Von Miller's agent looks at what Philly gave Cox, the SB MVP might need to temper his payday enthusiasm in Denver just a tad after examining the fine print? It sure sounds like it. "  let me know what you mean.

If you wanna make the argument that Cox's contract sets a new financial floor for what elite pass rushers going rate is in 2016, that's fine, but every franchise has different clauses in their contract that detail say offset language, workout bonuses, & payouts in case of a severe injury.

 

No one is debating that Von Miller will receive life changing money or not DW49; he will. All I'm saying is this: Every GM in the NFL always pays close attention to guaranteed money & how they can get out of contracts if suddenly Miller becomes as fragile as peanut brittle, he starts missing significant games, & his field production or sacks starts to plummet rapidly. 

 

All Cox's deal did is set the floor for premier pass rushers that's it. It's hardly conclusive when it comes to Miller's longterm financial, take home wealth over the duration of the deal. 

[dw49]

14 minutes ago, southwest1 said:

If you wanna make the argument that Cox's contract sets a new financial floor for what elite pass rushers going rate is in 2016, that's fine, but every franchise has different clauses in their contract that detail say offset language, workout bonuses, & payouts in case of a severe injury.

 

No one is debating that Von Miller will receive life changing money or not DW49; he will. All I'm saying is this: Every GM in the NFL always pays close attention to guaranteed money & how they can get out of contracts if suddenly Miller becomes as fragile as peanut brittle, he starts missing significant games, & his field production or sacks starts to plummet rapidly. 

 

All Cox's deal did is set the floor for premier pass rushers that's it. It's hardly conclusive when it comes to Miller's longterm financial, take home wealth over the duration of the deal. 

 

What you have above is true but you did first say that Miller might want to "soften" his demands after seeing this contract. I think maybe you might have missed the point that this was only a 9 month wait for the bulk (55.4) of the additional guaranteed money to come in. If Philly cut Cox before that date , it would cost them around 30 million in 2017 cap space. So I would say it's pretty much "impossible" for him not to receive this. Plus the 63 million is "fully guaranteed against injury." 

 

You're a good guy and I'll drop it but I think you misread how this contract played out when you first read it. I often say I missed something or was just plain mistaken....

[southwest1]

2 hours ago, dw49 said:

 

What you have above is true but you did first say that Miller might want to "soften" his demands after seeing this contract. I think maybe you might have missed the point that this was only a 9 month wait for the bulk (55.4) of the additional guaranteed money to come in. If Philly cut Cox before that date , it would cost them around 30 million in 2017 cap space. So I would say it's pretty much "impossible" for him not to receive this. Plus the 63 million is "fully guaranteed against injury." 

 

You're a good guy and I'll drop it but I think you misread how this contract played out when you first read it. I often say I missed something or was just plain mistaken....

Thanks. We usually see eye to eye on NFL topics & I will be the 1st to admit that salary cap knowledge & the intrcises of player contracts are not my strong suit & they never will be. I leave that stuff to forum members like Superman, NCF, & others. 

 

We're cool DW49. It's all good. No harm done. It wouldn't be the first time I read something backwards & it won't be the last either. My bad. I appreciate it. 

[dw49]

46 minutes ago, southwest1 said:

Thanks. We usually see eye to eye on NFL topics & I will be the 1st to admit that salary cap knowledge & the intrcises of player contracts are not my strong suit & they never will be. I leave that stuff to forum members like Superman, NCF, & others. 

 

We're cool DW49. It's all good. No harm done. It wouldn't be the first time I read something backwards & it won't be the last either. My bad. I appreciate it. 

 

Man it's a long offseason... On another note look for Luck to have a really big year. I think if truth were to be known , he hurt that shoulder in the first game and never was the same all year. I think teams want to keep that kind of stuff quite as their QB might take extra hits if known. If he stays upright , the sky is the limit. We are really being underestimated this year ... which is cool ... who cares ?

 

[southwest1]

3 minutes ago, dw49 said:

 

Man it's a long offseason... On another note look for Luck to have a really big year. I think if truth were to be known , he hurt that shoulder in the first game and never was the same all year. I think teams want to keep that kind of stuff quite as their QB might take extra hits if known. If he stays upright , the sky is the limit. We are really being underestimated this year ... which is cool ... who cares ?

 

Yeah, until the HOF game, time feels like it's frozen with no hope of de-thawing at all. I was more worried about the lacerated kidney than Luck's shoulder because it just makes me cringe when I think about it like a torturous method utilized during the Spanish Inquisition. What's on the menu today for traitors? Be-hendings, death by fire, the rack...Oh swell...Lacerated kidneys. An oldie but a goodie. [Sarcastic humor]. 

 

You're right though. Messing up his shoulder affects Andrew's throwing motion. Exactly, keep chewy on his feet & INDY will win a boat load of games. Plus, I like Brian Schottenheimer as our new QB coach. His dad Marty had to teach his son something beneficial right? 

 

INDY always plays better when we're underestimated anyway like you said. Being the dark horse is always more exciting anyway. 

[Superman]

7 hours ago, dw49 said:

A few people are reading this to mean that the contract was not a "blockbuster" due to the guaranteed money issue. It's over 55 million in the first 9 months. That says it all....or at least most of it.

 

You are correct with everything you pointed out but some are misunderstanding a bit. This is really not a "team friendly deal" as "all" the guarantees are not written in stone. It's like you said... are of an accounting issue. This is a another big win for Cox and the great players that are ready to sign new deals.

 

I meant to state that this is how pretty much all "guarantees" are structured on big money deals. The guaranteed money is reported differently than it's actually structured, which was the whole reason for me diving into this contract in the first place.

[dw49]

9 hours ago, Superman said:

 

I meant to state that this is how pretty much all "guarantees" are structured on big money deals. The guaranteed money is reported differently than it's actually structured, which was the whole reason for me diving into this contract in the first place.

 

There was nothing wrong with your posts it was accurate.

 

What might be happening is the contract parameters are "leaked out." and consequently not reported completely and accurately ? Say in this case .. Cox agent tells a talking head he just signed a 100 mill deal with 63 mill guaranteed. While there is really only 36 mill that is guaranteed when he signs it , the other 27 million is like 95% going to happen. So maybe the player and agent figure the deal is 63 mill guaranteed and that's how it's first reported ? In any event , the price for good players is catching up quickly with current and projected salary cap increases.

[Superman]

52 minutes ago, dw49 said:

 

There was nothing wrong with your posts it was accurate.

 

What might be happening is the contract parameters are "leaked out." and consequently not reported completely and accurately ? Say in this case .. Cox agent tells a talking head he just signed a 100 mill deal with 63 mill guaranteed. While there is really only 36 mill that is guaranteed when he signs it , the other 27 million is like 95% going to happen. So maybe the player and agent figure the deal is 63 mill guaranteed and that's how it's first reported ? In any event , the price for good players is catching up quickly with current and projected salary cap increases.

 

I believe agents are leaking these details, and it's in the agent's best interests to report the higher effective guaranteed figure rather than the true guaranteed figure. 63 > 36. I also believe agents are the ones promoting the new money calculations.

 

That's why I always look forward to contract details, because that's when we see what's really going on with these deals. 

 

Kind of off topic, if you compare Cox's deal with Malik Jackson's, there are two big differences. First, Cox has a MUCH bigger signing bonus ($26m vs $10m), which makes his contract tougher to navigate in future years, making him less likely to be a cap casualty after a couple seasons. Second, Jackson's guaranteed money at signing is $31.5m, then an additional $10.5m of his 2018 salary is guaranteed, but not until 2018. So if the Jaguars decided to cut him after 2017, they could, and they would only have $6m in dead money. Reporting Jackson's deal as $42m guaranteed is more of a stretch than reporting Cox's as $63m guaranteed. If you ask me, Jackson got half the guaranteed money of Cox.

 

http://www.spotrac.com/nfl/jacksonville-jaguars/malik-jackson/

[dw49]

2 hours ago, Superman said:

 

I believe agents are leaking these details, and it's in the agent's best interests to report the higher effective guaranteed figure rather than the true guaranteed figure. 63 > 36. I also believe agents are the ones promoting the new money calculations.

 

That's why I always look forward to contract details, because that's when we see what's really going on with these deals. 

 

Kind of off topic, if you compare Cox's deal with Malik Jackson's, there are two big differences. First, Cox has a MUCH bigger signing bonus ($26m vs $10m), which makes his contract tougher to navigate in future years, making him less likely to be a cap casualty after a couple seasons. Second, Jackson's guaranteed money at signing is $31.5m, then an additional $10.5m of his 2018 salary is guaranteed, but not until 2018. So if the Jaguars decided to cut him after 2017, they could, and they would only have $6m in dead money. Reporting Jackson's deal as $42m guaranteed is more of a stretch than reporting Cox's as $63m guaranteed. If you ask me, Jackson got half the guaranteed money of Cox.

 

http://www.spotrac.com/nfl/jacksonville-jaguars/malik-jackson/

 

 

Yeah Cox deal is WAY richer than Jackson's. To me it's 56 mill guaranteed not 36. He's not going to be cut in 9 months.