Packers save on Harris
This weeks release of longtime Packer Al Harris by the team illustrates a couple interesting money issues.
As a vested veteran, Harris would normally be entitled to termination pay the balance of his salary upon release by the Packers. However, since Harris started the season on the Physically Unable to Perform (PUP) list, he is not entitled to termination pay and the remaining balance of his $2.5 million salary ($1.18 million). Thus, the Packers, who acquired Harris in 2003 from the Eagles, have no further financial obligation to Harris.
Harris received his weekly paycheck of $147,000 (1/17th of his $2.5 million 2010 salary) from the Packers through the first nine weeks of the season. However, since he was never active for a game, he did not receive any of the $62,500 per game 45-man active roster bonuses (up to a maximum of $1 million for all 16 games). In his deal for the rest of the season with the Dolphins, Harris will earn about that same $147,000 amount per week should he now earn similar 45-man active roster bonuses on top of his salary.
I first inserted 45-man active roster bonuses in 2006 in deals with Ahman Green and Charles Woodson, both coming off seasons curtailed by injury. The Packers and many other teams now use the structure in all veteran contracts. It also is a way of dealing with players grumbling about new contracts, providing easily earned incentive money as long as the player was active and a compromise between tearing up their contracts and giving them new ones as they wished and doing nothing.
The one unanticipated problem with these clauses was at the end of the season when we had clinched playoff berths and coach Mike McCarthy unaware of these clauses decided to rest some starters who were otherwise healthy. Players and their agents were rumbling about those roster bonuses and we had to renegotiate a couple deals to make these players whole.