A note on the "guaranteed salaries"

[ctpatsfan77]

This is based on a post on the Patriots cuts thread:

If they cut him they no longer have to guarantee his 2013 salary correct?

Strictly speaking, a player's salary is guaranteed ONLY IF his contract specifically does so.

The "guarantee" that is mentioned here is actually from what's called the "Termination Pay" clause. That clause says that if a player:

(1) Would be an unrestricted FA if released;
(2) Is on a 53-man roster for the first game of the season;
and
(3) Is released in the middle of the season,

then

ONCE in his career, he can collect the remainder of his salary for that season.

So, for example, if Fells were on the roster Week 1 and then cut, he would be eligible for the termination pay. Hoomanawanui, however, is not eligible, since he would not be an unrestricted FA if released.

 

[Gwedd]

Ah....... gotcha. Thanks for that!

 

[Miguel]

More information

If on the roster on Week 1 and then released during the season - 100% of Paragraph 5 salary

If on the roster after Week and then released during - no more than 25% of Paragraph 5 salary

Let's use Niko Koutouvides as an hypothetical example.

He is a 9 year vet that would have a salary of $840,000. If he is on the roster Week 1 and later released, he would cost the Pats $840,000 on the cap.

If he is not on the roster Week 1 but he is signed during the season and he is later released his cost would be his weekly salary plus 25% of $840,000

 

[mgteich]

So, if Kout is not on the 53, he can earn 5 weeks salary (1 week plus 25%) for one's week work later in the season?

Can he earn the 25% more than once? If so, he is better off financially as a part time player.

If he is not on the roster Week 1 but he is signed during the season and he is later released his cost would be his weekly salary plus 25% of $840,000

 

[ctpatsfan77]

So, if Kout is not on the 53, he can earn 5 weeks salary (1 week plus 25%) for one's week work later in the season?

Can he earn the 25% more than once? If so, he is better off financially as a part time player.

Players can only claim termination pay once.

Moreover, the rule is that the termination pay, if signed after Week 1, equals "the unpaid balance on the initial 25% [of the pro-rated salary]" (if any) or one week's pay (up to the vet minimum for a player with 10+ seasons).

So it would depend on when he signed.