dfosterf
15 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
15 years ago
Stop with the numbers!!!
UserPostedImage
Thanks to TheViking88 for the sig!!
Nonstopdrivel
15 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. šŸ˜‰
UserPostedImage
dfosterf
15 years ago
From Andrew Brandt at NFP

Rookie Contracts Part 2 ; Andrew Brandt, National Football Post 

More stuff you find nowhere else but there.
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Zero2Cool (54m) : Oh? It wasn't on the injury report. That sucks, but it's what is best.
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beast (3h) : What does the weather look like?
Martha Careful (8h) : You can wear long-johns mittens and a hat. We want Hill and their other skill guys FROZEN
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Martha Careful (25-Nov) : I hope it is colder than a well-diggers ass on Thanksgiving night.
Zero2Cool (25-Nov) : doubt he wants to face the speedsters
beast (25-Nov) : Dolphins offense can be explosive... I wonder if we'll have Alexander back
Zero2Cool (25-Nov) : No Doubs could be issue Thursday
Mucky Tundra (25-Nov) : Bears. Santos. Blocked FG
Zero2Cool (24-Nov) : Bears. Vikings. OT
Mucky Tundra (24-Nov) : Thems the breaks I guess
Mucky Tundra (24-Nov) : Two players out and Williams had an injury designation this week but Oladapo is a healthy scratch
Zero2Cool (24-Nov) : Packers inactives vs 49ers: ā€¢ CB Jaire Alexander ā€¢ S Kitan Oladapo ā€¢ LB Edgerrin Cooper ā€¢ OL Jacob Monk
TheKanataThrilla (24-Nov) : Aaron Jones with a costly red zone fumble
Zero2Cool (24-Nov) : When we trade Malik for a 1st rounder, we'll need a new QB2.
packerfanoutwest (23-Nov) : Report: Aaron Rodgers wants to play in 2025, but not for the Jets
beast (23-Nov) : That's what I told the Police officer about my speed when he pulled me over
packerfanoutwest (23-Nov) : NFL told Bears that Packersā€™ blocked field goal was legal
packerfanoutwest (22-Nov) : 49ers are underdogs at Packers, ending streak of 36 straight games as favorites
Zero2Cool (22-Nov) : 49ers might be down their QB, DL, TE and LT?
packerfanoutwest (22-Nov) : Jaire Alexander says he has a torn PCL
Zero2Cool (20-Nov) : Even with the context it's ... what?
Mucky Tundra (20-Nov) : Matt LaFleur without context: ā€œI donā€™t wanna pat you on the butt and you poop in my hand.ā€
beast (20-Nov) : We brought in a former Packers OL coach to help evaluate OL as a scout
beast (20-Nov) : Jets have been pretty good at picking DL
Zero2Cool (20-Nov) : He landed good players thanks to high draft slot. He isn't good.
Zero2Cool (20-Nov) : He can shove his knowledge up his ass. He knows nothing.
beast (20-Nov) : More knowledge, just like bring in the Jets head coach
Zero2Cool (19-Nov) : What? Why? Huh?
beast (19-Nov) : I wonder if the Packers might to try to bring Douglas in through Milt Hendrickson/Ravens connections
Zero2Cool (19-Nov) : The Jets fired Joe Douglas, per sources
packerfanoutwest (19-Nov) : Jets are a mess......
Zero2Cool (19-Nov) : Pretty sure Jets fired their scouting staff and just pluck former Packers.
Zero2Cool (19-Nov) : Jets sign Anders Carlson to their 53.
Zero2Cool (19-Nov) : When you cycle the weeks, the total over remains for season. But you get your W/L for that selected week. Confusing.
packerfanoutwest (19-Nov) : the total and percentage are the same as the previous weeks
packerfanoutwest (19-Nov) : the total and percentage are the same as the previous weeks
packerfanoutwest (19-Nov) : the totals are accurate..nrvrtmind
Zero2Cool (19-Nov) : I don't follow what you are saying. The totals are not the same as last week.
packerfanoutwest (19-Nov) : ok so then wht are the totals the same as last week?
Zero2Cool (19-Nov) : NFL Pick'em is auto updated when NFL Scores tab is clicked
Martha Careful (19-Nov) : The offense was OK. Let's not forget the Bear defense is very very good.
packerfanoutwest (19-Nov) : Who updates the leaderboard on NFLPickem?
beast (19-Nov) : Has the Packers offense been worse since the former Jets coach joined the Packers?
Zero2Cool (19-Nov) : Offense gets his ass in gear, this could be good.
Zero2Cool (19-Nov) : Backup QB helped with three wins. Special Teams contributed to three wins.
bboystyle (18-Nov) : Lions played outside thats why. They scored 16 and 17 in the only 2 outside games this year
Zero2Cool (18-Nov) : The rest of the NFL is catching up to Packers ... kicking is an issue throughout league
packerfanoutwest (18-Nov) : Packers DL Kenny Clark: We knew 'we were going to block' Bears' game-winning field goal attempt
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