Tom Brady Restructures Contract - shifts $24 million

[mrscruff]

https://www.facebook.com/AdamSchefter/posts/879202748799034

In a deal turned into NFL today, Tom Brady restructured his contract to give NE $24 million more in cash to spend this winter, per sources.

Under the new deal, Brady changed the $24 million in “skill” guarantee to only “injury” guarantee, meaning that Brady now would get the guaranteed money only if he were injured. Brady also now can be released from the Patriots without any liability, but he then would become an unrestricted free agent, free to command the type of guaranteed money he has agreed to surrender. This frees up cash for the Patriots to use on other players. New England needs the cash to help re-sign some of its own free agents such as Darrelle Revis, Devin McCourty, Nate Solder and Shane Vereen, amongst others.

 

[rochrist]

https://www.facebook.com/AdamSchefter/posts/879202748799034

Interesting. Not a peep from any of the local guys.

 

[West Philly Patriot]

The Tim Duncan of Professional Football. All about the wins man. Lucky to have watched this dude play.

 

[ctpatsfan77]

How does this free up money?

 

[BradyManny]

PUT IN GARAPOLOH.

 

[BradyManny]

How does this free up money?

Good question. It's an amazingly vague report by Schefter. I'll wait for someone like Miguel to digest it for us lay people.

 

[rochrist]

So they've gained 24 million in cap room from this one move?

 

[FrodoBagginz]

Welcome back Revis.

 

[rochrist]

Reiss is reporting it now.

 

[Rob0729]

How does this free up money?

It is my understanding that any money that is fully guaranteed must be put into escrow so that it is available when the team pays it to the player. Now that it isn't fully guaranteed, the Pats do not have to tie up the entire amount in cash.

 

[TBR]

24 million is not just a coincidence

 

[Deus Irae]

Need to see the details

 

[BelichickFan]

It is my understanding that any money that is fully guaranteed must be put into escrow so that it is available. Now that it isn't fully guaranteed, the Pats do not have to tie up the entire amount in cash.

Miguel concurs :

[email protected] ‏@patscap 1m1 minute ago
Teams have to escrow the amount of fully guaranteed contracts. Rmoving the fully gtd portion from Brady's contract eliminates that for Pats.

 

[Deus Irae]

24 million is not just a coincidence

You figure Kiefer Sutherland is involved?

 

[BradyManny]

It is my understanding that any money that is fully guaranteed must be put into escrow so that it is available. Now that it isn't fully guaranteed, the Pats do not have to tie up the entire amount in cash.

So are we talking strictly a cash flow thing here, what does it do (if anything) cap-wise?

 

[Mark12]

The Tim Duncan of Professional Football. All about the wins man. Lucky to have watched this dude play.

Tim Duncan is the Tom Brady of professional basketball.

 

[Rob0729]

So are we talking strictly a cash flow thing here, what does it do (if anything) cap-wise?

Nothing. It just means Kraft doesn't have to tie up $24 million dollars over the next three years. They will have to pay Brady the $7 or so milllion next year, but will have another $17 million freed to spend on Revis and McCourty and others.

But capwise it means nothing.

 

[dales804]

Wow. Thought he was pissed about what NE did in not getting him any help?

 

[West Philly Patriot]

Tim Duncan is the Tom Brady of professional basketball.

Tim actually came first bro, was winning championships when Brady was still on campus.

 

[BradyManny]

It will be interesting to see how Florio can manage to spin this into an anti-Brady thing and deny that the QB seems less concerned with his paycheck than the team's success. I can't see anything Brady gains from this, all it does is free up cash for the Pats.