dfosterf
16 years ago
It is probably just a coincidence, but last week Andrew Brandt did an article on Rookie contracts. In the comments, I asked him if it would be possible to break down a "typical" contract...And he is !


In the first installation, he talks about the signing bonus.

A look at rookie contracts 

Over the next couple of weeks, I want to take you inside the negotiations of these rookie contracts in a few stages. A common misperception about rookie contract negotiations is that with the rookie salary cap setting basic levels of contract values the only substantive negotiation is the number inserted for the signing bonus. In some contracts, that might be the case, but the reality is a bit more complicated. Its the infrastructure of the contract that often becomes more debated than the dollars and cents. Today, lets look at the signing bonus.

The Signing Bonus
Depending on when the contract is negotiated, there may be precious little to negotiate with regard to the bonus. In the seventh round, the haggling may be over tens of dollars. In the sixth round, it may come down to a hundred dollars. In the fifth, the debating may be over a few hundred dollars and so on.

For those teams that wait until the week of training camp which some teams do the bonus amounts will have likely filled in around the pick, and its simple to fill in a fair number for both sides. As mentioned, some teams will look around the rounds of their picks in the week of training camp, call the agents and fill in the numbers. Thats a relatively stress-free way of doing the contracts; my nature would not allow me to do that because Id be worried if we hadnt signed most of our rookies by early to mid-July. For those like myself who tried to lock in contracts early in the development of the round, filling in a number becomes a task based on the previous, rather than the current, year.

Thus, in negotiating among the first deals in a couple of the rounds, the markers used this year were from the 2008 draft, examining the increase in bonus from 2007 to 2008 in various data points:
the exact slot of the selection;
the overall selection in the draft;
the area three picks above and below the slot;
the quadrant of the round;
the half of the round;
the full round.

In the lower rounds, the increases in bonus amounts are typically in the 3-4 percent range. In the second round, the range is broader and higher, anywhere from 6-8.5 percent.

In round numbers, the following are current signing bonus amounts for a mid-round selection in the lower rounds, assuming four-year deals, which most teams are now routinely using:
Seventh: $50,000
Sixth: $100,000
Fifth: $180,000
Fourth: $470,000
Third: $735,000
Second: $1.8 million (signing bonus plus guaranteed salary)

On a four-year contract, the salaries for each player are locked in at the following for contracts this year:
2009: $310,000
2010: $395,000
2011: $480,000
2012: $565,000

So before any bonus discussion, the player is assured of a contract worth $1.75M in total value, although not guaranteed.

Thus, the negotiation about hard numbers becomes a negotiation about the signing bonus, except for the second round, which, due to the operation of the rookie pool, necessitates teams shielding part of the guaranteed amount in a one-time incentive using the easiest-earned categories allowable for the player to make the money to keep it out of the pool number. Second-round picks receive signing bonuses and incentives backed by future guarantees in later salaries in the contract.

The rookie cap went up five percent from 2008 to 2009. Interestingly, the minimum salary for year one went from $295,000 in 2008 to $310,000 2009, a 5.1-percent increase in itself. Thus, teams can realistically argue that there should be no increase in bonus this year as the cap number for each player is already up five percent due to the minimum increase. That argument has and continues to be made, although without much success in the agent community.

For most agents, the negotiation is all about the bonus, and I cant blame them. The sobering fact is that the majority of these players will not last the contract and should probably grab every penny of guaranteed money they can. Every agent should bet on his player to protect the upside but be realistic about the downside.

Speaking of the upside, next in this series: the escalator.

Formo
16 years ago
Stop with the numbers!!!
UserPostedImage
Thanks to TheViking88 for the sig!!
Nonstopdrivel
16 years ago
Hey, paying attention to numbers is the reason why I'm currently up $54.50 (on an initial bankroll of $200) after only 31 hands.

God, I love Texas Hold'em.

Oh, yeah, great article too. 😉
UserPostedImage
dfosterf
16 years ago
From Andrew Brandt at NFP

Rookie Contracts Part 2 ; Andrew Brandt, National Football Post 

More stuff you find nowhere else but there.
Fan Shout
beast (18h) : But the Return from IR designations had to be applied by the 53 man cutdown.
beast (18h) : It's a new rule, so it's not clear, but my understanding was that they could be IR'd at any time
Mucky Tundra (22h) : *had to be IRed at 53
Mucky Tundra (22h) : beast, I thought the designate return from IR players had to be IR at cutdowns to 53, not before
beast (23h) : It's a brand new rule, either last season or this season, prior, all pre-season IRs were done for the season
beast (23h) : But the Packers would have to use one for their return from IR spots on him, when they cut down to 53.
beast (23h) : I think the NFL recently changed the IR rules, so maybe the season might not be over for OL Glover.
Zero2Cool (8-Aug) : Packers star Howton, first NFLPA prez, dies at 95 😔
dfosterf (8-Aug) : Apparently it is too complicated for several to follow your simple instructions, but I digress
dfosterf (8-Aug) : Zero- Did you see what I posted about Voice of Reason and his wife? She posted over at fleaflicker that they are both "In"
Zero2Cool (7-Aug) : Well, not crazy, it makes sense. Crazy I didn't notice/find it earlier
Zero2Cool (7-Aug) : it's crazy how one stored procedure to get data bogged everything down for speed here
dfosterf (7-Aug) : to herd cats or goldfish without a bowl. They reminded me of the annual assembly of our fantasy league
dfosterf (7-Aug) : out on a field trip, outfitting them with little yellow smocks. Most of the little folk were well behaved, but several were like trying
dfosterf (7-Aug) : Yesterday my wife and I spent the afternoon on the waterfront here in Alexandria, Va. A daycare company took about 15 three/four year olds
wpr (7-Aug) : seems faster. yay
dfosterf (7-Aug) : Wife of reason posted on the in/out thread on fleaflicker that both she and vor are in
Zero2Cool (7-Aug) : This page was generated in 0.135 seconds.
Mucky Tundra (7-Aug) : Tbh, I can never tell the difference in speed unless it's completely shitting the bed
Zero2Cool (7-Aug) : Sure does feel like site is more snappy
Zero2Cool (6-Aug) : I thought that was the Lions OL
Mucky Tundra (6-Aug) : Travis Glover placed on IR; seasons over for him
Zero2Cool (6-Aug) : found bad sql in database, maybe site faster now?
dfosterf (5-Aug) : I'm going to call that a good move.
Zero2Cool (4-Aug) : Packers sign CB Corey Ballentine
Zero2Cool (4-Aug) : I'm not sure how to kill the draft order just yet so it's not so confusing.
Mucky Tundra (4-Aug) : *to be able
Mucky Tundra (4-Aug) : and because it's not a dynasty league (which makes a lot more sense to be ability to trade picks)
Mucky Tundra (4-Aug) : Oh I know; I was just exploring and it blew my mind that you could trade picks because of the whole reordering thing
Mucky Tundra (4-Aug) : Zero, I think I preferred my offer: your 1st for my 15th rounder
Zero2Cool (4-Aug) : Keep in mind, we do a draft reorder once all members locked in
Zero2Cool (4-Aug) : You can have my 12th Rd for your 2nd round
Mucky Tundra (4-Aug) : Hey i didn't know we could trade picks in fantasy
Mucky Tundra (3-Aug) : Update: Rock has tried a cheese curd, promises it's not his last
Zero2Cool (3-Aug) : watch it!! lol
Mucky Tundra (3-Aug) : you're right, we never did leave, the site just went down :P
Mucky Tundra (3-Aug) : Rock claims to have never eaten a cheese curd
Zero2Cool (3-Aug) : We did not leave.
Mucky Tundra (3-Aug) : Family Night! WE ARE SO BACK!
Mucky Tundra (2-Aug) : To this day, I'm still miffed about his 4 TD game against Dallas on Thanksgiving going to waste
Martha Careful (2-Aug) : Congratulations Sterling Sharpe. He was terrific and I loved watching him play.
beast (2-Aug) : I believe it's technically against the CBA rules, but Jerry just calls it a simple unofficial chat... and somehow gets away with it.
beast (2-Aug) : Jerry Jones is infamous for ̶n̶e̶g̶o̶t̶i̶a̶t̶i̶n̶g̶ chatting with players one on one... and going around the agent.
Mucky Tundra (1-Aug) : Oo just saw a blurb saying that Dallas negotiated directly with Parsons and not through his agent
Mucky Tundra (1-Aug) : I assumed that both guys will get paid, just a matter of when or how we get there
Zero2Cool (1-Aug) : McLaurin nor Micah going anywhere. They will get money
Mucky Tundra (1-Aug) : the Synder years or do they take care of one of their own?
Mucky Tundra (1-Aug) : Do the Commanders risk losing a top WR with an emerging QB just because he's turning 30 and potentially risk damaging the rebuild from
Mucky Tundra (1-Aug) : Turns 30 this September, plays at a high level and Washington has some cap space I believe
Mucky Tundra (1-Aug) : More interesting is Washington with Terry McLaurin
Please sign in to use Fan Shout
2025 Packers Schedule
Sunday, Sep 7 @ 3:25 PM
LIONS
Thursday, Sep 11 @ 7:15 PM
COMMANDERS
Sunday, Sep 21 @ 12:00 PM
Browns
Sunday, Sep 28 @ 7:20 PM
Cowboys
Sunday, Oct 12 @ 3:25 PM
BENGALS
Sunday, Oct 19 @ 3:25 PM
Cardinals
Sunday, Oct 26 @ 7:20 PM
Steelers
Sunday, Nov 2 @ 12:00 PM
PANTHERS
Monday, Nov 10 @ 7:15 PM
EAGLES
Sunday, Nov 16 @ 12:00 PM
Giants
Sunday, Nov 23 @ 12:00 PM
VIKINGS
Thursday, Nov 27 @ 12:00 PM
Lions
Sunday, Dec 7 @ 12:00 PM
BEARS
Sunday, Dec 14 @ 3:25 PM
Broncos
Friday, Dec 19 @ 11:00 PM
Bears
Friday, Dec 26 @ 11:00 PM
RAVENS
Saturday, Jan 3 @ 11:00 PM
Vikings
Recent Topics
1h / Green Bay Packers Talk / Zero2Cool

8-Aug / Around The NFL / Zero2Cool

8-Aug / Fantasy Sports Talk / packerfanoutwest

8-Aug / Green Bay Packers Talk / beast

7-Aug / Green Bay Packers Talk / beast

5-Aug / Green Bay Packers Talk / beast

4-Aug / Green Bay Packers Talk / bboystyle

3-Aug / Green Bay Packers Talk / Mucky Tundra

3-Aug / Green Bay Packers Talk / beast

3-Aug / Feedback, Suggestions and Issues / Zero2Cool

2-Aug / Green Bay Packers Talk / Mucky Tundra

2-Aug / Green Bay Packers Talk / wpr

28-Jul / Random Babble / Zero2Cool

28-Jul / Green Bay Packers Talk / Mucky Tundra

28-Jul / Green Bay Packers Talk / Mucky Tundra

Headlines
Copyright © 2006 - 2025 PackersHome.com™. All Rights Reserved.