Tom Brady Restructures Contract - shifts $24 million

patsinthesnow said:

Team's viewpoint: Makes Brady easier to cut/trade. Waiting on Miguel's blog to see how the cap hits/cap savings change by year for a hypothetical Brady trade with this move. This also helps "cash flow" within the organization.

Brady's viewpoint: No idea.

EDIT: update

http://espn.go.com/blog/new-england...ys-contract-restructure?ex_cid=espnapi_public

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So overall it appears to still help us bring back the likes of Revis and McCourty in FA this year.

Didn't we place a 5th year option on Solder?

Jackson 2 said:

... Just don't appreciate those who basically lie saying they're Pats fans (hello Rhody Patriot) when they're not.

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hwc said:

Lot of Brady ball-washing in Reiss' reports. Brady is not renegotiating contracts out of the goodness of his heart or "to help the team surround him with weapons" or to improve Krafty's cash flow. Trading the skill part of the guarantee for an extra million a year might make sense from Brady's standpoint. The Pats were never going to cut him. Trade was the only rational option and this doesn't change the trade ramifications one iota. If anything, it makes a trade a little easier because the new team wouldn't be on the hook for a three year guarantee, either.

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Joey007 said:

Didn't we place a 5th year option on Solder?

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YEARBASESIGNING BONUSROSTER BONUSOPTION BONUSWORKOUT BONUSRESTRUC. BONUSINCENTIVECAP HITDEAD
2011 375,0001,177,817-----1,552,817-
2012 763,2041,177,817-----1,941,021-
2013 1,151,4081,177,817-----2,329,2254,276,848
2014 769,8061,177,817769,806----2,717,4291,947,623
2015 7,438,000------7,438,000-
2016 UFA

Solder needs to restructure, or.....

The point is not to hold guaranteed money for Brady in an escrow account.

No cap ramifications, it just unemcumbers millions of Kraft's dollars to do other things with (like to award a huge upfront Revis payout)

Joey007 said:

So overall it appears to still help us bring back the likes of Revis and McCourty in FA this year.

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As reported, it trims the available cap room by $1 million for 2015. Not sure how that makes it easier to sign other players.

hwc said:

As reported, it trims the available cap room by $1 million for 2015. Not sure how that makes it easier to sign other players.

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Trollishly spoken.

You must be frantic that people will think well of Brady because of this contract restructure. I was willing to back off of my Troll accusations when Oswlek spoke up for you.. but man, you are trying way too hard to refute any possibility of positive feedback for Brady.

But to your "point". Having this money available allows the Patriots to sweeten contracts and entice players to resign by offering them bigger signing bonuses. Sign with us and we will give you an 8 million dollar signing bonus. Accept this contract and we can offer you a 10 million dollar signing bonus.

So yes, that makes it easier to resign other players.

hwc said:

As reported, it trims the available cap room by $1 million for 2015. Not sure how that makes it easier to sign other players.

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It frees up about 6% of their cash flow for bonus money to players like Revis/MacD

Palm Beach Pats Fan said:

The point is not to hold guaranteed money for Brady in an escrow account.

No cap ramifications, it just unemcumbers millions of Kraft's dollars to do other things with (like to award a huge upfront Revis payout)

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Well, according to Tanguay and Minehan, this just proves that Krafty Bob is cheap.

http://www.patsfans.com/salary-cap/?p=1020 is my blog post.

Its been said a hundred different times, but can't be said enough.

We (if Patsfans.com doesn't mind me using that word) are lucky to have you, Miguel. Thank you.

OK. This kind of makes sense. If you figure a 4% interest rate on borrowing the $24 million to place in escrow, that's $1 million a year. So maybe this is as simple as paying Brady rather than a bank. Putting aside injury (which is still guaranteed), the Pats are no more likely to release Brady over the next three years now, because it simply doesn't make sense from a cap standpoint.

I don't think for a minute that the Pats couldn't come up with the $24 cash (the value of the team went through the roof with the sale price of the Bills). So it may be just not wanting to throw away the cost of the $24 million. Or, there may be some arcane cash over cap rules that muddy the waters on these guaranteed deals. Is there a max limit on cash over cap in any given year (or problems with the resulting cash under cap in subsequent years?). That makes my head hurt...

hwc said:

OK. This kind of makes sense. If you figure a 4% interest rate on borrowing the $24 million to place in escrow, that's $1 million a year. So maybe this is as simple as paying Brady rather than a bank. Putting aside injury (which is still guaranteed), the Pats are no more likely to release Brady over the next three years now, because it simply doesn't make sense from a cap standpoint.

I don't think for a minute that the Pats couldn't come up with the $24 cash (the value of the team went through the roof with the sale price of the Bills). So it may be just not wanting to throw away the cost of the $24 million. Or, there may be some arcane cash over cap rules that muddy the waters on these guaranteed deals. Is there a max limit on cash over cap in any given year (or problems with the resulting cash under cap in subsequent years?). That makes my head hurt...

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Unless I misread Miguel's table, it makes it far easier to release him from 2015 on. It looks like if they release him in the offseason before the 2016 season before June 1, it goes from 29mil to 12 mil, and after June 1, it goes from 23 mil to 6 mil.

At least I /think/ that's what the table says.

robertweathers said:

I think Brady decided that if he gets hurt, he gets $24m. If he decides to leave the team, he can be released and make the $24m back on the open market.

What I don't know is the cap charge to the Pats if that happens. It might go down b/c it is no longer has a "skill" but an "injury" designation for the guarantee.

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I was actually thinking the same also.

I'm not a familiar with how the cap works and all so I could be (probably am) totally wrong, but in my opinion...

I recall Brady mentioning in an interview earlier this year that he wants to play for as long as he feels he is good - whether that's with the Pats or another team. Then mentioned how other top QBs like Montana played for different teams because they still felt they were good even if their original team did not (paraphrasing).

I think Brady did this so that *if* the time comes and the pats want to part ways they will be able to release him without a huge hit, and allow him to go to the team of his choice who will more than likely pay far more than the Pats.

Brady's already giving us discount and almost any other team would trade for him at his current contract. This change at least allows the Pats to release him and let him go to the team of his choice, unless of course the Pats want to be douches to one of the best things to ever happen for us and trade him to the raiders or bucs or something.

rochrist said:

Unless I misread Miguel's table, it makes it far easier to release him from 2015 on. It looks like if they release him in the offseason before the 2016 season before June 1, it goes from 29mil to 12 mil, and after June 1, it goes from 23 mil to 6 mil.

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On paper, it makes it easier to release him. (Release becomes the same as trading him, which was always an option). But, realistically, Brady goes into 2015 as the starter, so we are only talking a max of 2016 and 2017. If you release him, you still have to sign a veteran back up QB. A decent one is going to cost nearly as much as Brady's new money. Factor in the fan uproar and releasing him just doesn't make sense. If the Pats wanted to get rid of him, the trade route is still far more attractive -- same cost (now) and draft picks in return. Maybe releasing him before the final season in 2017 is doable, but honestly... I think Brady retires a Patriot sometime at or before the end of this current deal, making it all moot.

I don't see this reported rework as having much impact on the broad implications of his contract, except that it increases the Pats cap number by $1 a year.

West Philly Patriot said:

Honestly, you're not the 1st to point out mistakes, It's not meant to be a biography. Just making a point That the guy isn't a thug, seems to be the exact opposite actually.

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he's not a thug. he is just a jackass

He makes 1 million more per year so his cap hit actually goes up.

Makes it slightly harder to sign fa's.

I don't think a billion dollar franchise would have a hard time putting up 24m in cash. They could use a letter of credit most likely.

cash flow volatility where they might borrow millions of dollars at a time and pay it back soon after wouldn't be a big deal. Probably borrow money at 3% or so. So I don't think the cash flow was the real issue.

wolverinejoe80 said:

he's not a thug. he is just a jackass

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He's funny tho, I like when he goes on a rant and scares the bejessus out of the poor female reporter.

RhodyPatriot said:

Duncan has more rings.

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it's much easier to get ring in basketball.

this seems like a giant nonstory to me. nothing really changed brady is getting more money, but its not guarenteed.