Breaking News Per Schefter: Long-term contract for Hernandez!

[ctpatsfan77]

It's the higher of the new tag (top 5 averaged over 5 years) or 120% of the previous one which is almost always the higher.

Actually, to be precise, it's the higher of the 120% of the previous year salary (i.e., the tag) or the franchise number for that position.

The key, though, is that the third time a player is tagged, that shoots up to 144% of the prior year salary, or the highest franchise number of any position.

In other words, they can tag Welker a second time, but unless they're insane, they can't do it a third time.

 

[MoLewisrocks]

Actually, to be precise, it's the higher of the 120% of the previous year salary (i.e., the tag) or the franchise number for that position.

The key, though, is that the third time a player is tagged, that shoots up to 144% of the prior year salary, or the highest franchise number of any position.

In other words, they can tag Welker a second time, but unless they're insane, they can't do it a third time.

I thought that's what I said...and she wasn't asking about a third year...

 

[shmessy]

His guaranteed money would all have been paid out this season if not by next ......../QUOTE]

Bingo.

Which is why it is beneficial to pay ONE YEAR AT A TIME, instead of both years altogether upfront. If he gets hurt in 2012, they haven't flushed the other $11 million+ down the drain.

After the two years, if by Spring 2014 he is still the 100+ per year reception machine at the age of 33, then they would have a decision to make.

 

[Palm Beach Pats Fan]

If Hernandez approaches Welker in productivity this year, may his 7.5 MIL per year figure require Wes to downsize to a similar long term number after this year, to stick around?

I value Wes a lot and thought he was worth 8-9 for 3 at least, but this AH deal may do him no favors.

 

[MoLewisrocks]

His guaranteed money would all have been paid out this season if not by next ......../QUOTE]

Bingo.

Which is why it is beneficial to pay ONE YEAR AT A TIME, instead of both years altogether upfront. If he gets hurt in 2012, they haven't flushed the other $11 million+ down the drain.

After the two years, if by Spring 2014 he is still the 100+ per year reception machine at the age of 33, then they would have a decision to make.

And it could be a pretty sucky one considering they'd have already paid him $21M. When they could have had him for 2014 for maybe another $4-5M instead of another $11M...or more.

They flushed $10M down the drain on Ocho and Fanene for NOTHING. What kind of risk reward was that compared to Welker, given his track record.

 

[Uncle Rico]

For comparison's sake: Just saw an AP headline describing this as a "$40 million extension." So the Pats extended AH for less than the Jason McCourty got in his extension. Pretty good I say.

 

[shmessy]

And it could be a pretty sucky one considering they'd have already paid him $21M. When they could have had him for 2014 for maybe another $4-5M instead of another $11M...or more.

They flushed $10M down the drain on Ocho and Fanene for NOTHING. What kind of risk reward was that compared to Welker, given his track record.

No doubt it is a calculation.

Nothing is guaranteed. They are leaning to paying him for this year, seeing if he is ready to go for next year and letting the chips fall where they may in 2014 and beyond. Easier this afternoon than yesterday since they now have Gronk and AH wrapped up through 2018 at the earliest.

They felt a bigger priority to keep Hernandez at age 22 for 7 years than Welker at age 31 for 4 years. It is what it is.

 

[Le Numéro Douze]

Belichick knows that if the TE game progresses again this year Welker is basically expendable. He's not a deep threat and the TEs are going to eat up everything in the middle now. The Welker money will be spent elsewhere next year. That sucks because Wes is my favorite player outside of Brady, but that's the cold hard truth.

 

[Clonamery]

Belichick knows that if the TE game progresses again this year Welker is basically expendable.

Cool, good to know. So you can have too many weapons on offense? Got it. Guess that's part of that, "it is what it is" mantra.

 

[MoLewisrocks]

No doubt it is a calculation.

Nothing is guaranteed. They are leaning to paying him for this year, seeing if he is ready to go for next year and letting the chips fall where they may in 2014 and beyond. Easier this afternoon than yesterday since they now have Gronk and AH wrapped up through 2018 at the earliest.

They felt a bigger priority to keep Hernandez at age 22 for 7 years than Welker at age 31 for 4 years. It is what it is.

4 years was never on the table for Welker, that's the rub. Even three wasn't. The most they offered him was 2 years and $16M guaranteed on what would have been a 3 year $18.5M deal including his remaining contract year in 2011. This year the lesser offer was likely 2 years $14M or less. Given that choice he opted for 1 year at $9.5. He's betting on himself. They've put themselves between a rock and a hard place since they almost have to bet against him. If he's right they'll lose because they won't be able to pay him $11.4M. They will have their hands full trying to work out an extension to circumvent Brady's $22M cap hit.

 

[Keyser Söze]

 

[BananaRepublican]

If Hernandez approaches Welker in productivity this year,

What a thought. And if they are up by four TDs against the Dolphins but are going to continue to put up points, who are they more likely to throw to - Hernandez or Welker?

 

[Urgent]

Immediately donating $50,000 to the Myra Kraft foundation?
Classy.

This is a great example of a man changed by the Patriots organization.
Good for him.

 

[MoLewisrocks]

The following are the contract details broken down by season, provided by a league source. The extension includes a $12.5 million signing bonus, $16 million in guaranteed money, and a maximum value of $40 million in additional money.

(One additional note on the bonus: it will be paid out over three installments. Hernandez will receive $6 million up front, $3.25 million of March of 2013, and $3.25 million more in March of 2014).

2012 season
Base salary: $540,000 (guaranteed)
Roster bonus: $104,000
Signing bonus: $12.5 million (prorated)

2013 season
Base salary: $1.323 million (guaranteed for injury only. This will become fully guaranteed if Hernandez is on the roster in March of 2013)
Roster bonus: $118,000
Off-season workout bonus: $82,000 (non-guaranteed)

2014 season
Base salary: $1.2 million ($1.137 million of which is guaranteed for injury only. This will become fully guaranteed if Hernandez is on the roster in March of 2013)
Off-season workout bonus: $500,000 (guaranteed if Hernandez is on the roster in March of 2013)
Additional bonus: $500,000 if named to the Pro Bowl

2015 season
Base salary: $2.3 million (non-guaranteed)
Off-season workout bonus: $500,000 (non-guaranteed)
Roster bonus: $31,250 for each game he is on the 46-man game day roster. (Up to $500,000 for a full 16-game season).
Additional bonus: $500,000 (if named to the Pro Bowl)

2016 season
Base salary: $5 million (non-guaranteed)
Off-season workout bonus: $500,000 (non-guaranteed)
Roster bonus: $31,250 for each game he is on the 46-man game day roster. (Up to $500,000 for a full 16-game season).
Additional bonus: $500,000 if named to the Pro Bowl

2017 season
Base salary: $6 million (non-guaranteed)
Off-season workout bonus: $500,000 (non-guaranteed)
Roster bonus: $31,250 for each game he is on the 46-man game day roster. (Up to $500,000 for a full 16-game season).
Additional bonus: $500,000 if named to the Pro Bowl

2018 season
Base salary: $6 million (non-guaranteed)
Off-season workout bonus: $500,000 (non-guaranteed)
Roster bonus: $31,250 for each game he is on the 46-man game day roster. (Up to $500,000 for a full 16-game season).
Additional bonus: $500,000 if named to the Pro Bowl

Details on Hernandez extension - New England Patriots Blog - ESPN Boston

 

[Silver Blue&Red]

HA HA HA!!! dude, I almost pissed my pants!

 

[mayoclinic]

Details on Hernandez extension - New England Patriots Blog - ESPN Boston

Here's a nice read on the Hernandez extension from Doug Farrar at the Shutdown Corner:

The Price is Tight: Patriots agree to contract extension with Aaron Hernandez | Shutdown Corner - Yahoo! Sports

If you think about Hernandez' value as a "joker" receiver rather than thinking about how much you are paying 2 TEs, it's a good deal. It's less money than Pierre Garcon got in free agency.

 

[MoLewisrocks]

Cap #'s look like

2012 $3.144
2013 $4.128
2014 $4.2
2015 $5.8
2016 $8.5
2017 $7.0
2018 $7.0

Those do not include his pro bowl incentives which will be NLTBE until he earns the first. I treated the per game bonuses as if earned.

 

[MoLewisrocks]

Total maximum value
Gronkowski: $55 million
Hernandez: $40 million

Total contract length
Gronkowski: 2019
Hernandez: 2018

Signing bonus
Gronkowski: $8 million
Hernandez: $12.5 million ($6 million up front, $3.25 million of March of 2013, and $3.25 million in March of 2014)

Base salaries
Gronkowski: $540,000 (2012), $630,000 (2013), $3.75 million (2014), $4.75 million (2015), $2.25 million (2016), $4.25 million (2017), $8 million (2018), $9 million (2019)
Hernandez: $540,000 (2012); $1.323 million (2013), $1.2 million (2014), $2.3 million (2015), $5 million (2016), $6 million (2017), $6 million (2018)

ANALYSIS: Gronkowski has a higher earning ceiling, which he can feel good about if he performs at a high level over the course of the deal. One key part of his contract is a $10 million option bonus the team can pick up on the final day of the 2015 league year. That activates the final four years of the contract. For Hernandez, his ceiling might not be as high, but he received more up-front bonus money and also has one less year on his contract. The deal for Hernandez looks more “real” in the sense that he could realistically play it out as it doesn’t have the volatile spike that Gronkowski’s does in the final two years when it comes to base salaries.

Using Jason's cap figures the combined cap hit for these two going forward is:

2012 $ 5.9M
2013 $ 6.7M (roughly the current franchise tag price for one)
2014 $ 9.8M
2015 $14.4M
2016 $15.1M (Gronk's deal is primed for 2nd half restructure here)
2017 $14.0M
2018 $18.0M
2019 $12.0M (Gronk only)

The combined cap cost for the pair doesn't begin to get interesting until 2015 when the cap should begin it's steady rise more reflective of the TV deals. And the deals free up the franchise tag in 2013 to be used again as a place holder or leverage with potential UFA like Welker, Chung or Vollmer.

Jason has us at roughly $5M under the cap at this time. We are carrying a substantially higher than usual amount of dead cap ($17.5M or $22M+ including IR and PUP) due to some recent miscalculations... I think it is safe to say the FO is closed for business other than minor additions in season until week 17 which would be the time one of Vollmer or Chung might be revisited based on performance or a player like Edleman or Woody might be reasonably extended ahead of UFA.

Comparing Hernandez & Gronk deals - New England Patriots Blog - ESPN Boston

 

[jason423]

Using Jason's cap figures the combined cap hit for these two going forward is:

2012 $ 5.9M
2013 $ 6.7M (roughly the current franchise tag price for one)
2014 $ 9.8M
2015 $14.4M
2016 $15.1M (Gronk's deal is primed for 2nd half restructure here)
2017 $14.0M
2018 $18.0M
2019 $12.0M (Gronk only)

The combined cap cost for the pair doesn't begin to get interesting until 2015 when the cap should begin it's steady rise more reflective of the TV deals. And the deals free up the franchise tag in 2013 to be used again as a place holder or leverage with potential UFA like Welker, Chung or Vollmer.

Jason has us at roughly $5M under the cap at this time. We are carrying a substantially higher than usual amount of dead cap ($17.5M or $22M+ including IR and PUP) due to some recent miscalculations... I think it is safe to say the FO is closed for business other than minor additions in season until week 17 which would be the time one of Vollmer or Chung might be revisited based on performance or a player like Edleman or Woody might be reasonably extended ahead of UFA.

Comparing Hernandez & Gronk deals - New England Patriots Blog - ESPN Boston

Its going to be a bit more than 5 million because I still am including 2 guys in your top 51 whose salaries should not count towards the cap (Waters and Fiametta) who are officially on exempt lists now. So you can add their base salaries back onto the cap and subtract the bottom two from that. Its probably a net gain of 2 million or so. I have a feeling that coming to the realization that Waters is by no means coming back is what opened up the room to do the extension.

 

[ctpatsfan77]

Its going to be a bit more than 5 million because I still am including 2 guys in your top 51 whose salaries should not count towards the cap (Waters and Fiametta) who are officially on exempt lists now. So you can add their base salaries back onto the cap and subtract the bottom two from that. Its probably a net gain of 2 million or so. I have a feeling that coming to the realization that Waters is by no means coming back is what opened up the room to do the extension.

Waters' status makes almost no difference except for this year, since he wasn't signed for next year, and therefore none of his cap $$$ can go there.