The football business continues to grow as NFL teams train out of season. Here are some items that have caught my eye in the last two weeks and my perspectives.
The Packer Way
The PackersExtending his contract with Jaire Alexander, a player in a premium position, is a reflection of their philosophy. They did the drafting, turned it into one of the top corners of the NFL, and have now blocked it with a long-term extension.
What is different about the financial strategy of the Packers players now, compared to when I made the contracts from 1999 to 2009 and managed the cap, is their contract structure. It was the philosophy of my hat “As you pay,” the limit and cash are matched as closely as possible to allow for future flexibility. This is not how the Packers structured Alexander’s agreement, or other contracts in their books.
Alexander is receiving a $ 30 million signing bonus, spread over six years, with a $ 5 million annual charge and a $ 1 million salary. Thus, its 2022 cash figure is $ 31 million and its ’22 cap number is $ 7 million, more than the $ 24 million cash limit. I would use more borderline rooms this year, giving the same $ 31 million with more salary or list bonuses (not prorated) to smooth out borderline words in the future. As we know in caps management: caps early = cap-unfriendly late.
The current Packers management has low early wages and high signing fees. I understand; They’re trying to squeeze everything they can out of Aaron Rodgers ’uncertain tenure (his contract is structured as a one-year deal) and they care less about the future than I do.
There’s one constant left about the Packers, something I’ve been telling people about for the last 25 years: they’re constantly one of the biggest spending teams in the NFL. This is not noticeable because the Packers spend it on their players mostly not on free quick fix agents. Alexander’s extension is a shining example of this.
New Tom Brady
So let me be clear: Outside of the 2022 season, Tom Brady 1) retired, 2) owned a portion of the Dolphins and immediately hired Sean Payton to be his coach (same as the Rooney Rule), 3) without retiring. and 4) signed a 10-year deal with Fox to broadcast the games (when he actually retires). I’m sure I’m missing a few things, but they seem to be the most prominent.
Brady’s deal with Fox was a whopping $ 375 million in 10 years, a staggering amount and more than Brady’s 22-year playing career. Fox admitted he hired Brady, but denied the amount. The situation is similar to the usual news of a major player contract: the agent goes to the media with the most beneficial numbers to shout at the world, and the “real number” is hidden. In this case, however, Fox is the big media.
As for the number — or the actual number — I’m not surprised. To secure Brady for an unspecified date at the end of the game, Fox had to make an offer that he could not refuse. And it did so by basically paying Tony Romor and Troy Aikman double the top market rate of $ 18 million a year. Brady will double that number (reportedly), but that’s now, not then. By the time Brady retires — that, who knows, five years from now — at an age of 50 — he averages $ 37.5 million a year. may rate the top analysts in the NFL!
Finally, in Brady, it’s striking — at least for me — how different we’ve seen Tom Brady since he left the Patriots in 2020, both professionally and personally. Financially, after leaving his money on the table in his contracts with the Patriots, for two decades Brady has not done so with the Buccaneers and now with Fox. In New England, Brady not only took less caps (which all paid quarterbacks do and did in Tampa Bay), but less money. “New Brady” is taking all the last bucks on his contracts. Also, from a personality standpoint, we’re really seeing a new Brady: playful, active on social media, funny in a nerdy way, and very revealing. We had never seen this Brady in New England in two decades.
It’s fascinating how much more interesting Brady has been in Belichickia for the past two decades.
Watson’s discipline is close
NFL investigators met with Watson last week to indicate that the end of a 14-month investigation into his behavior is nearing completion.
In his experiences with cases of personal conduct in the NFL, the last conversation in the league has almost always been with the accused. After interviewing Watson, Lisa Friel, who conducts research for the NFL, will report on her discovery. A disciplinary officer, a NFL and a NFLPA jointly appointed judge, will administer discipline so that any appeal — you guessed it — can be heard by NFL Commissioner Roger Goodell. According to the new CBA, he is no longer “judge, jury and executioner.” Now he’s just an “appellate judge”.
As I have repeatedly said in this space, I expect a long break for Watson. Ben Roethlisberger and Ezekiel Elliott face this six-game interruption commissioner with an NFL precedent for sexual misconduct with a woman. I would expect the six-game break to be the minimum given to Watson.
Watson may suffer from not playing but, as I said before, Brown they have actually diminished its potential economic loss. Loss of income due to an NFL break is limited to salary, not allowance. Browns deliberately structured Watson’s 2022 minimum wage to be approximately $ 1 million, and the remaining $ 46 million in compensation was a signature bonus.
Thus, if Watson were suspended for half a season (using a simple calculation number), his total financial loss would be about $ 500,000. His 2022 salary instead of $ 46 million would be around $ 45.5 million. The Browns have used this structure with their players, but not with outside players; they sold their souls, among all the players, to Watson.
In this rare case, the player, not the team, remains the winner in the football business.
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