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
Zero2Cool (3m) : Harrisburg Packers
Mucky Tundra (21m) : Yes
Zero2Cool (1h) : No.
dfosterf (1h) : The man carried us a lot of the time
dfosterf (1h) : I think a Kenny Clark tribute is in order
Zero2Cool (9h) : new site, text editor gooder even on phone
beast (9h) : Oh yes, sometimes they make using a cellphone tough. I just wanted to make sure it was the correct article, & thank you for pointing it out.
jdlax (11h) : I can't believe one of my teams went out and wablammo just up and acquired one of the best players in the world overnight
dfosterf (16h) : I do very much appreciate when Beast and others pick up my slack 😊
dfosterf (16h) : I accept Beast's admonishment regarding my failure to link stuff I reference. I simply never learned to link from my cell phone.
beast (16h) : That's not what your she said 😌, she said keep going 😏
Mucky Tundra (19h) : Anything over 4 hours means he needs to get to the hospital
Mucky Tundra (19h) : Someone might want to check on Hafley and make sure his erection has gone down
Zero2Cool (21h) : LaFleur texts "bleep me I cannot sit down"
Zero2Cool (21h) : YouTube has had me last hour or two lol
Mucky Tundra (21h) : Ugh this trade happened right as my shift started and it's killing me
Zero2Cool (21h) : Parsons wore 23 in high school.
Zero2Cool (22h) : Packers just cost Lions more money with Hutchinson too huh
Zero2Cool (23h) : That is fair by me.
buckeyepackfan (23h) : Kenny Clark is the player, 2 1st rnd picks
Zero2Cool (23h) : umm... what?
wpr (23h) : I am stunned
Mucky Tundra (23h) : RICKEY SCOOPS WAS RIGHT AGAIN!!!
Mucky Tundra (23h) : ITS HAPPENING
buckeyepackfan (23h) : DEAL IS DONE
buckeyepackfan (23h) : MICAH IS COMING TO GREEN BAY!!!!!!!!!
wpr (28-Aug) : Me do-ed it gooderly,
Zero2Cool (28-Aug) : Bahah, I was like WTF why isn't anyone posting on PP.com ... oops no one has permissions
dfosterf (27-Aug) : tell her I reckon
dfosterf (27-Aug) : Micah Robinson cut. Probable PS player tomorrow. Has to call mom back and t
Zero2Cool (27-Aug) : New site so much better. Might make switch and deal with it.
dfosterf (27-Aug) : Mecole Hardman to our practice squad
dfosterf (27-Aug) : Nick Nieman from Texans our 5th linebacker. Special teams signing
TheKanataThrilla (27-Aug) : Looks like we signed Clayton Tune as QB3
wpr (27-Aug) : TKT people lose their minds over QB3. Point is almost none of them are ready that's why they are on the PS and other teams don't take them.
TheKanataThrilla (27-Aug) : Unfortunately he doesn't seem ready to be an emergency QB.
TheKanataThrilla (27-Aug) : As a Canadian and a follower of Canadian University football. I am rooting for him
dfosterf (27-Aug) : I bet a lot of us will follow the Taylor Elgersma journey with interest. Personally, got a Kurt Warner vibe goin' on. I like him
TheKanataThrilla (27-Aug) : Not sure if either will be claimed though.
TheKanataThrilla (27-Aug) : Tune or Hooker would make sense
dfosterf (27-Aug) : Clayton Tune cut by the Cards? Don't know if that's the guy, we shall see
TheKanataThrilla (27-Aug) : Per Bill Huber, the Packers will not be bringing back Taylor Elgersma or Sean Clifford on the practice squad, so a new third quarterback
Mucky Tundra (27-Aug) : Schefter must have deleted his tweet
dfosterf (27-Aug) : Hopefully Jerry reaches under the seat cushions and ashtrays of his jet and scrapes up the 45 million apr and spares us further nonsense
dfosterf (27-Aug) : Have to admit the PO'd Cowboy fan videos would be fun to watch. Problem with draft picks is half their fanbase barely knows what that is
beast (27-Aug) : I think Cowboys fans are ready to get their pitch forks and burning sticks if Jerry were to trade Micah
dfosterf (27-Aug) : If Jerry traded Micah to GB, here in northern Va. they would have to quick build yet another data center to handle the internet hate traffic
Zero2Cool (27-Aug) : its signing and trades that you don't hear about, other then announced
Zero2Cool (27-Aug) : If you hear rumors about Packers sign or trade, won't happen. Not how they work
dfosterf (27-Aug) : 19 players in a contract year. Jones called loss to us worst loss in Cowboy history. Forget Parsons trade. Not happenin' Cap'n
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