Cap questions

Discussion in ' - Patriots Fan Forum' started by Triumph, Mar 8, 2011.

Thread Status:
Not open for further replies.
  1. Triumph

    Triumph Experienced Starter w/First Big Contract

    #75 Jersey

    In the event of a lockout, are roster bonuses paid?

    Brady is due 10 Million of his 16 Million signing bonus in August of 2011. Is that paid if there is no season?
  2. Box_O_Rocks

    Box_O_Rocks Supporter Supporter

    In the case of a lockout there is no roster from which to assign bonuses.
  3. MoLewisrocks

    MoLewisrocks Supporter Supporter

    Yes, because that portion of Brady's deal was guaranteed signing bonus (not roster bonus)and only deferred to a later payout date and not contingent on a new league year.

    Most roster or option bonuses are paid in March, or on a date within a week or so of the normal start of a league year. Most of the contracts teams entered into over the last year or so had that language changed to tie future payments due players to the start of a new league year or I think in some cases even the first week of the next season.

    When Borges explained that in his detail of the contract he referred to it as Brady's lockout insurance. But Brady (and the Kraft's) may have also preferred him not to be the one high profile NFLPA member getting $10M handed to him by ownership in March 2011 during a time when he might also find his name being attached to a lawsuit... He has often agreed to split up his bonus money probably because it works for both sides from a cash flow and/or tax standpoint. The CBA allows for those kinds of accommodations, although if payment is deferred past a certain point, I believe one year, there is language that requires it be paid with interest as a result of the deferral.

    As far as we know Big Vince got his $18M signing bonus up front. And as far as we know Bodden got a $6M signing bonus. So Kraft was handing those 3 alone $40M unless some of it was deferred. And there were several smaller signing or roster bonuses due. I'm sure some teams find themselves tight from a cash on hand (aka cash over cap) for immediate bonus money payment standpoint early in a new season... Back in the day when Manning signed his 2004 contract that had a $34M signing bonus it wasn't all paid out on the day he signed because Irsay needed a couple of months to liquidate some of his personal possessions in order to fund it. The Colts didn't have that kind of cash on hand based on their operating income or cash flow, which was one reason they were desperate for a new stadium and stadium deal.
Thread Status:
Not open for further replies.

Share This Page