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Brees agrees to 100 million dollar deal

Gavin

By Gavin
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21isSuperman Walk On

21isSuperman

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Dont know about what? 60 million of it is guaranteed, 40 million in the first year

40 million in the first year? Wow! Talk about a front loaded contract. If it's too extreme, they might get penalized for circumventing the cap....in which case the Saints will become public enemy #1 and go from the little team that could to one of the more hated teams in the league.

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Gavin Walk On

Gavin

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40 million in the first year? Wow! Talk about a front loaded contract. If it's too extreme, they might get penalized for circumventing the cap....in which case the Saints will become public enemy #1 and go from the little team that could to one of the more hated teams in the league.

Depends on whos perspective really your looking at, from a fans perspective they are the most hated team do to bounty gate by many, I doubt its to front loaded then again I dont know if thats possible
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oldunclemark Walk On

oldunclemark

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According to the link I posted above:

Brees' contract includes $60 million in guarantees and is worth $61 million over the first three years, according to NFL Network and NFL.com's Albert Breer.

Maybe he can stop crying about how awful the NFL is now...

Stand up for the game instead of standing up for your hooligan teammates

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NewColtsFan

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FJC is correct....

The big money is the signing bonus up front that prorated over the 5-years. Remember Sam Bradford's $50 Mill signing bonus on his $78 Mill contract?

That's how they do this.... a big bonus and small salary which frees up salary cap space for the Saints. Say, for example, there very well may likely be similar resets for years 2 and 3. There's 20 Mill more of guaranteed money. He may get $5 Mill on a year 2 bonus and $5 Mill in salary and another $5 Mill for a year-3 bonus and $5 Mill more in salary for that year. All to make it cap friendly.

Then, they can restructure the deal for years 4 and 5 based on the teams salary cap needs and what Brees thinks is fair as well.

Good for Brees.... Someone needed to be a little creative. And $61 Mill (if that's the correct guaranteed figure for 3-years) puts Brees in a $20+ Mill category all to himself. Win-win for player and team.

Well done, Drew.....

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Superman

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According to the link I posted above:

Brees' contract includes $60 million in guarantees and is worth $61 million over the first three years, according to NFL Network and NFL.com's Albert Breer.

It's really kind of a bogus designation. They consider the $60 million to be guaranteed because it's unlikely that the Saints will release Brees before Year 3. Really, it looks like it's $40 million guaranteed, with $20 million more in option bonuses after 2012 and 2013.

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21isSuperman Walk On

21isSuperman

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It's really kind of a bogus designation. They consider the $60 million to be guaranteed because it's unlikely that the Saints will release Brees before Year 3. Really, it looks like it's $40 million guaranteed, with $20 million more in option bonuses after 2012 and 2013.

So it's $40 mil guaranteed and then he gets $20 mil if he isn't released? Kind of like how Peyton had that $28 mil option?

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Superman

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So it's $40 mil guaranteed and then he gets $20 mil if he isn't released? Kind of like how Peyton had that $28 mil option?

FJC says it's a $37 million signing bonus with a $3 million base salary in 2012, making it $37 million that's actually guaranteed. Assuming he plays this season, it's $40 million. Then, there's an option bonus of $15 million after the 2012 season, and another option bonus of $5 million after the 2013 season. That brings us to $57 million in bonuses in the first three years, plus his base salaries of $3 million in 2012 and whatever his base salary will be in 2013 and 2014 = > $60 million in the first three years.

But all that money isn't guaranteed, from a technical standpoint. It is likely to be paid, but then again, the entire $100 million is likely to be paid, barring unforeseen circumstances. I just look at it differently than others do. Just like Manning's contract was reported to be guaranteed for a lot more than the $23.4 million that he actually made, because the remaining bonuses were likely to be paid. However they weren't.

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FireJimCaldwell

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FJC says it's a $37 million signing bonus with a $3 million base salary in 2012, making it $37 million that's actually guaranteed. Assuming he plays this season, it's $40 million. Then, there's an option bonus of $15 million after the 2012 season, and another option bonus of $5 million after the 2013 season. That brings us to $57 million in bonuses in the first three years, plus his base salaries of $3 million in 2012 and whatever his base salary will be in 2013 and 2014 = > $60 million in the first three years.

But all that money isn't guaranteed, from a technical standpoint. It is likely to be paid, but then again, the entire $100 million is likely to be paid, barring unforeseen circumstances. I just look at it differently than others do. Just like Manning's contract was reported to be guaranteed for a lot more than the $23.4 million that he actually made, because the remaining bonuses were likely to be paid. However they weren't.

This is from Flubio.

The $40 million paid in 2012 is fully guaranteed. For now, $20 million beyond 2012 is guaranteed for injury only. Next year, on the third day of the waiver period (typically, the third day after the Super Bowl), $15 million of the injury guarantee becomes fully guaranteed. The extra $5 million remains guaranteed for injury only.

In 2015, again on the third day of the waiver period, more than half of his $19 million base salary becomes fully guaranteed. Ditto for 2016; on the third day of the waiver period, more than half of the $20 million base salary becomes fully guaranteed.

The device in the last two years of the contract forces the Saints to cut him, if at all, sufficiently early in the offseason to give him a full chance to land elsewhere.

In all, he’ll receive $40 million this year, $10 million in 2013, $11 million in 2014, $19 million in 2015, and $20 million in 2016. Which makes it, in essence, a three-year, $61 million contract with a team option for year four (at $19 million) and year five (at $20 million).

http://profootballtalk.nbcsports.com/2012/07/13/brees-gets-37-million-to-sign/

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FireJimCaldwell

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Andrew Brandt ‏@adbrandt

Looks like Brees has a staggering $40M in 2012. Saints have 3-day window to get out in February, otherwise $15M more gteed in 2013.

Getting out of it would also create a 29.6 dead cap hit, so that addtional 15 million in 2013 is all but guaranteed.

Andrew Brandt ‏@adbrandt

I am told the structure of Brees in year one is : 37M signing bonus, 3M salary. 10.4M Cap, down almost 6M from Tag number of 16.37M.

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NewColtsFan

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Some here are down on this deal I think because they view it as a sign of disrespect to Peyton Manning. That Brees shouldn't be making a higher number than Manning.

I'm here to offer another way to look at it.

The ultimate sign of respect to Peyton Manning is what just took place this off-season. A quarterback who missed an entire season due to nerve damage on his throwing arm and who underwent FOUR surgeries in the hope of regaining that arm strength was courted by more than 10 franchises ALL of whom were prepared to sign him to HUGE money before finding out if he'd ever be the same.

In the history of the NFL it's completely unprecedented. And that's the kind of respect Peyton Manning gets.

In the eyes of those who run NFL franchises, Peyton Manning is a better quarterback than Drew Brees and that's all that should matter to the Peyton fans here. :manning: Your guy is still King of the Hill. :thmup:

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Superman

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Some here are down on this deal I think because they view it as a sign of disrespect to Peyton Manning. That Brees shouldn't be making a higher number than Manning.

I'm here to offer another way to look at it.

The ultimate sign of respect to Peyton Manning is what just took place this off-season. A quarterback who missed an entire season due to nerve damage on his throwing arm and who underwent FOUR surgeries in the hope of regaining that arm strength was courted by more than 10 franchises ALL of whom were prepared to sign him to HUGE money before finding out if he'd ever be the same.

In the history of the NFL it's completely unprecedented. And that's the kind of respect Peyton Manning gets.

In the eyes of those who run NFL franchises, Peyton Manning is a better quarterback than Drew Brees and that's all that should matter to the Peyton fans here. :manning: Your guy is still King of the Hill. :thmup:

It's been clearly obvious for three years now that the highest paid label doesn't necessarily mean "best." Eli Manning was the highest paid quarterback for about two months, until Brady got his new deal. Then Peyton Manning got his, then he got another one, and now Brees holds the title. That is, until Brady or Eli or Rodgers get new deals. Has nothing to do with who is best. There's a group at the top, and they all can be included in the discussion for "best." But there's no objective way to make that determination.

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NewColtsFan

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It's been clearly obvious for three years now that the highest paid label doesn't necessarily mean "best." Eli Manning was the highest paid quarterback for about two months, until Brady got his new deal. Then Peyton Manning got his, then he got another one, and now Brees holds the title. That is, until Brady or Eli or Rodgers get new deals. Has nothing to do with who is best. There's a group at the top, and they all can be included in the discussion for "best." But there's no objective way to make that determination.

Absolutely agreed. And the top QB's will jockey back and forth, up and down, for who is #1 as their next contract comes up. (Once Jaws got to his final 6 QB's -- and they've all won at least one Super Bowl, some two -- I said then there was an argument to be made that any of them could be #1)

I was only trying to offer the Manning fans a bone... something to get them to see this differently. Their guy is as good as it gets and the people who make the ultimate decisions are the ones saying that. That sign of respect -- what happened in the Manning Sweepstakes this spring -- is the ultimate form of currency in the NFL.

Props to Peyton.

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Superman

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I'd like to see more on it before commenting more on it.

Hopefully Brandt will do a write up about it. I trust him far more than Flubio.

Fair enough, but that's what "guaranteed for injury" means, no?

If the question is whether it's really guaranteed for injury or not, that's another thing. Just looking for clarification on the meaning of the term.

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Fair enough, but that's what "guaranteed for injury" means, no?

If the question is whether it's really guaranteed for injury or not, that's another thing. Just looking for clarification on the meaning of the term.

Guaranteed for injury in my opinion is that he will be paid even if he is injured for the amounts guaranteed for injury.

Using Manning's deal with Denver as an example, if he hurts his neck/arm again then they can get out it, but if he tears his ACL or Achilles he's still going to get paid. It's guaranteed for injury outside of neck/arm.

Brandt did expand on it and explains more about the staggered guarantees outside of the signing bonus.

The deal is finally done. After two years of haggling, the New Orleans Saints and Drew Brees have reached common ground. Let's go inside the deal, looking at the numbers provided by a league source:

Year 1

[+] Enlarge

nfl_u_brees_b1_200.jpgDerick E. Hingle/US PresswireDrew Brees will earn up to $40 million for his 2012 earnings.

Brees was carrying a one-year franchise tag number of $16.371 million. That is no longer.

Brees will receive a staggering $37 million signing bonus, to be paid in full over the next six months. And for the 2012 season, Brees will receive a salary of $3 million, bringing his 2012 earnings to $40 million. This represents the highest one-year earnings in the NFL.

As the signing bonus is prorated over the contract term of five years, Brees’ cap number this year consists of the prorated bonus amount ($7.4 million), plus the salary ($3 million). This $10.4 million compares favorably to the $16.371 cap number that the Saints were carrying on Brees, a savings of almost $6 million to the Saints’ tight cap.

Year 2

When the 2013 waiver period begins after the Super Bowl -- held in New Orleans this year -- the Saints will have three days to release Brees. Should they do so (highly unlikely), he will become a free agent with $40 million in his pocket for his 2012 services.

If the Saints do not release him, a $15 million guarantee activates -- $10 million in 2013 and $5 million in 2014.

Thus, Brees’ two-year earnings are $50 million, but the functional amount is really $55 million as an additional $5 million for 2014 is guaranteed with no offset. That means if Brees is released before 2014 and signs with another team, he would keep the entire $5 million from the Saints in addition to his earnings from a new team.

Year 3

Similar to 2013, the Saints will have three days to either release Brees -- letting him walk with $55 million earned over two seasons -- or activate another $5 million guaranteed. That would put Brees’ total guarantee at $60 million, another NFL record. And, for good measure, he has a $1 million salary in 2014, bringing his three-year earnings to $61 million.

The $61 million over three years is -- technically -- not the highest three-year amount in the history of the NFL. That honor goes to the contract signed 11 months ago between the Colts and Peyton Manning, with three-year earnings of $70 million. However, as we know, that contract never saw Manning play a game and was terminated in March, allowing Manning to become a free agent and sign with the Broncos.

Years 4 through 5

There are similar triggers relating to the remaining $39 million of the contract -- $19 million in Year 4 and $20 million in Year 5. Of course, these triggers become more relevant than the earlier ones in the contract, as there is more risk later in the deal. It is hard to forecast the future, but the deal sets up for another negotiation three years from now, with perhaps a different leverage equation.

The Manning factor

In any negotiation there is always a contract that becomes a focal point for the talks. In this case it is the freshest data point in the marketplace, the contract in March between the Broncos and Manning. Manning makes “only” $18 million in the first year, but he is coming off a season where he didn’t play due to a neck injury.

The fulcrum of Manning’s contract is for Manning to pass a 2013 physical, activating $40 million of guarantees for Years 2 and 3, meaning Manning, if healthy, will make $58 million over the first three years of his deal, all guaranteed. Now Brees, 33, who is three years younger than Manning and obviously healthier, will make $61 million over the same period.

Outlook

We knew this deal was going to get done and we knew the magic number of $20 million per year was a target for the Brees camp. The devil was always in the details -- Year 1 money, guarantee triggers, three-year value, etc.

Brees, who was discarded by the Chargers in 2006 and turned down by the Dolphins in free agency that year, now becomes the highest-paid player in the history of football. And no one is arguing that he shouldn't.

http://espn.go.com/blog/nfcsouth/post/_/id/36679/breaking-down-drew-brees-deal

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Guaranteed for injury in my opinion is that he will be paid even if he is injured for the amounts guaranteed for injury.

That's what I would think, also, except that doesn't make sense. Why would a team agree to a contract that guarantees a player's pay if he gets injured? I can understand it the other way: The team can't release the player just because they want to get out from under the contract after Year 1, but they can release him if he gets hurt between now and then. That makes a lot more sense to me. But you're right, the verbiage suggests the opposite. And that would mean that they can release him without paying him the other bonuses (so-called guaranteed) unless he gets hurt. Which, again, sounds backward to me. I understand it from the player's perspective, but not from the team's perspective.

Using Manning's deal with Denver as an example, if he hurts his neck/arm again then they can get out it, but if he tears his ACL or Achilles he's still going to get paid. It's guaranteed for injury outside of neck/arm.

And again, that seems strange to me. But if that's the case, then okay.

Brandt did expand on it and explains more about the staggered guarantees outside of the signing bonus.

http://espn.go.com/b...drew-brees-deal

Pretty much the way it sounds. The $60 million is not fully guaranteed. Likely to be paid, but not guaranteed.

And Andrew Brandt is the man.

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FireJimCaldwell

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That's what I would think, also, except that doesn't make sense. Why would a team agree to a contract that guarantees a player's pay if he gets injured? I can understand it the other way: The team can't release the player just because they want to get out from under the contract after Year 1, but they can release him if he gets hurt between now and then. That makes a lot more sense to me. But you're right, the verbiage suggests the opposite. And that would mean that they can release him without paying him the other bonuses (so-called guaranteed) unless he gets hurt. Which, again, sounds backward to me. I understand it from the player's perspective, but not from the team's perspective.

And again, that seems strange to me. But if that's the case, then okay.

Pretty much the way it sounds. The $60 million is not fully guaranteed. Likely to be paid, but not guaranteed.

And Andrew Brandt is the man.

I guess it's just a way to entice a player to sign a deal, to offer them more protection.

If the skills aren't there they can still get out of it unless they guarantee it vs. skills as well.

Like with Manning, If he dings up his neck again then the Broncos deserve the protection. If he tears his ACL, it's just the bad luck that goes with football.

With the signing bonus that is paid they've basically put themselves in a spot that they will be forced to retain his services in 2013 based on the cap hit. They would either absorb the remaining 29.6 in dead space in one year or take the 7.4 hit next year and then the 22.2 the following year. It's still not fully guaranteed, but it is as close as it can get.

The bad news is that this contract and the others:

Eli 2015

Roethlisberger 2015

Rodgers 2014

Rivers 2015

Brady 2014

Ryan 2013

Stafford 2014

Each of those will be pushing the dollars higher and higher and that will put Luck's 5th year option easily into the 20's.

Brees will have a 26.4 cap hit as it stands now in 2015

Peyton's is set to be 19 million in 2015

Roethlisberger is at 19.5 in 2015

Eli's will be 19.75 in 2015.

The others with new deals will keep the $'s going up and up. So if Luck pans out Grigson will need to begin discussing an extension before year 5 is here.

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Superman

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How ridiculous--to put this into context, a person earning $100k per year (which is a pretty good salary) would take 1000 years to earn what Brees will earn in 5 years

The person earning $100k/yr probably isn't one of the primary draws of a billion dollar enterprise. Yeah it's crazy that athletes make soooo much money, but we buy the tickets, watch the games, support the advertisers, buy merchandise, etc.

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