CBA & Player Contracts - Can The Pats Even Sign Brady?

[bresna]

I was reading a story on WEEI this morning: https://weei.radio.com/blogs/ryan-hannable/what-are-the-details-of-tom-brady-s-contract and it got me to wondering about this line:
"the Patriots can sign him to a new contract at any point — they have the exclusive rights to negotiate with him up until March 16."

But Tom Brady is still "under contract" for another year. That extra year just happens to automatically void on March 18th.

We have been told many times that per the CBA, someone under contract cannot renegotiate that contract until after a year passes after the old contract is signed. Brady signed this latest contract last summer, well after March 18th. How can the Patriots negotiate with Brady under these conditions?

Can any CBA or cap gurus help me here?

 

[Family]

They could have a verbal agreement with Tom.

It's not like they're dealing with Josh McDaniels.

 

[Sciz]

We have been told many times that per the CBA, someone under contract cannot renegotiate that contract until after a year passes after the old contract is signed. Brady signed this latest contract last summer, well after March 18th. How can the Patriots negotiate with Brady under these conditions?

The often forgotten stipulation here is that it only applies to renegotiations that increase the cap number. Brady’s fake 2020 and 2021 salaries are excessively high, so his cap hit would definitely come down in any new contract. Therefore, it is allowed.

 

[Rob0729]

The can renegotiate his current contract still. If they don't get a deal done before he opts out of the contract, it is highly unlikely he could come back.

The Pats have several players they can cut or renegotiate that would free up a decent amount of money though. Cutting Sanu for example would save $6.5 million. With his age, injury history, and legal problems, Chung will likely get cut that will free up $2 million. They could extend Hightower and potentially free up $5-6 million.

 

[bresna]

The can renegotiate his current contract still. If they don't get a deal done before he opts out of the contract, it is highly unlikely he could come back.

The Pats have several players they can cut or renegotiate that would free up a decent amount of money though. Cutting Sanu for example would save $6.5 million. With his age, injury history, and legal problems, Chung will likely get cut that will free up $2 million. They could extend Hightower and potentially free up $5-6 million.

But can they cut these players before March 18th and save cap space in 2020? I would think not. If they cut them now, they're cutting them in 2019 season, not 2020.

Don't most most salary cap cuts happen after the new year? The Over The Cap site has June 1 as an important date for cuts.

 

[Rob0729]

But can they cut these players before March 18th and save cap space in 2020? I would think not. If they cut them now, they're cutting them in 2019 season, not 2020.

Don't most most salary cap cuts happen after the new year? The Over The Cap site has June 1 as an important date for cuts.

The Pats have plenty of money to sign Brady if that was their only free agent move this year. Unless the Pats intend to be aggressive the first minute of free agency, this isn't an issue. They can sign Brady and then after the new year starts cut players immediately.

 

[Ring 6]

I was reading a story on WEEI this morning: Detailing Tom Brady’s contract with important information as he potentially becomes free agent and it got me to wondering about this line:
"the Patriots can sign him to a new contract at any point — they have the exclusive rights to negotiate with him up until March 16."

But Tom Brady is still "under contract" for another year. That extra year just happens to automatically void on March 18th.

We have been told many times that per the CBA, someone under contract cannot renegotiate that contract until after a year passes after the old contract is signed. Brady signed this latest contract last summer, well after March 18th. How can the Patriots negotiate with Brady under these conditions?

Can any CBA or cap gurus help me here?

I read this from @Miguel on bsj.
The rule is you can’t sign another contract INCREASING SALARY for a year, otherwise there is no issue.

 

[Ring 6]

The Pats have plenty of money to sign Brady if that was their only free agent move this year. Unless the Pats intend to be aggressive the first minute of free agency, this isn't an issue. They can sign Brady and then after the new year starts cut players immediately.

They will almost surely lower their cap number when signing him

 

[QuantumMechanic]

The often forgotten stipulation here is that it only applies to renegotiations that increase the cap number. Brady’s fake 2020 and 2021 salaries are excessively high, so his cap hit would definitely come down in any new contract. Therefore, it is allowed.

In fact, the fake salaries were so high precisely to invoke the rule that would allow the contract to be renegotiated in less than a year.

 

[Rob0729]

They will almost surely lower their cap number when signing him

Well, only if they extend or renegotiating his contract. If he leaves and then re-signs, he won't. In fact if he leaves, I don't think he re-signs. I think he is gone if they get to him opting out of his contract.

 

[Ring 6]

Well, only if they extend or renegotiating his contract. If he leaves and then re-signs, he won't. In fact if he leaves, I don't think he re-signs. I think he is gone if they get to him opting out of his contract.

Well his cap number goes down if he leaves also.
The point was there is no need to free up cap space because his new contract will reduce the cap.

 

[DaBruinz]

But can they cut these players before March 18th and save cap space in 2020? I would think not. If they cut them now, they're cutting them in 2019 season, not 2020.

Don't most most salary cap cuts happen after the new year? The Over The Cap site has June 1 as an important date for cuts.

This is false. Teams regularly cut players between the SB and the start of the new league year and it frees up money for the upcoming year.

 

[DaBruinz]

Well, only if they extend or renegotiating his contract. If he leaves and then re-signs, he won't. In fact if he leaves, I don't think he re-signs. I think he is gone if they get to him opting out of his contract.

If they fail to renegotiate a contract before Mar 18th, Brady's cap hit will be $13.5M or so. Not a big deal. And still plenty of room to bring him back.

 

[bresna]

If they fail to renegotiate a contract before Mar 18th, Brady's cap hit will be $13.5M or so. Not a big deal. And still plenty of room to bring him back.

But any salary they negotiate with him will be added to this number. Kraft has said they want to keep his salary under 20% of the cap, which means that they don't want to pay Brady more than $26.5 Million. I imagine there will be many teams willing to go much higher than that, which is really the crux of the problem. That $13.5 Million makes it tougher for the Pats to sign him to a cap-friendly deal.

 

[mgteich]

???

If the patriots cut Brady, the 2020 cap hit would increase from $6.75M to $13.5M.

Well his cap number goes down if he leaves also.
The point was there is no need to free up cap space because his new contract will reduce the cap.

 

[Vatahala]

IMO NFL needs to simplify the way the salary cap works.

It doesn't make sense that Pats will have dead money on the 2020 cap if Brady leaves as a free agent this year.

 

[Ring 6]

???

If the patriots cut Brady, the 2020 cap hit would increase from $6.75M to $13.5M.

WHEN they sign him it goes down.
Your argument was if they sign him they don’t have cap room to build a team. Facts are that they will have much more cap room than they normally do (possibly must ever) and every single season since 2000 they have upgraded their weakest areas. But youre right this must be the year they forget how to.

 

[Deus Irae]

But any salary they negotiate with him will be added to this number. Kraft has said they want to keep his salary under 20% of the cap, which means that they don't want to pay Brady more than $26.5 Million. I imagine there will be many teams willing to go much higher than that, which is really the crux of the problem. That $13.5 Million makes it tougher for the Pats to sign him to a cap-friendly deal.

The QB money situation is pretty straightforward. They either sign Brady before his contract voids, and suffer a likely $6.75m cap hit, or they sign Brady or another QB after that contract voids, and suffer a $13.5m cap hit.

This actually gives keeping Brady a bit of a financial edge over going after someone else to be the starting QB, as long as the deal gets done before the deadline. How much of that edge remains would then depend on the contract difference between a Brady extension and a new QB's deal. Unless the expectation is that Brady takes a huge pay cut, it doesn't make any financial sense to let Brady go to free agency and then sign him back.

 

[QuantumMechanic]

IMO NFL needs to simplify the way the salary cap works.

It doesn't make sense that Pats will have dead money on the 2020 cap if Brady leaves as a free agent this year.

On the contrary, it makes lots of sense. Guaranteed money and bonuses are amortized over the life of the contract. If a contract is cut short by the player being cut, retiring, or (in certain cases) traded, the money scheduled to be amortized in the future years accelerate into the current year.

If you didn’t do it that way it would make the salary cap meaningless because teams could spread out the money over huge lengths of time.

 

[Vatahala]

On the contrary, it makes lots of sense. Guaranteed money and bonuses are amortized over the life of the contract. If a contract is cut short by the player being cut, retiring, or (in certain cases) traded, the money scheduled to be amortized in the future years accelerate into the current year.

If you didn’t do it that way it would make the salary cap meaningless because teams could spread out the money over huge lengths of time.

In this case he's leaving as a free agent not like the 3 examples you mentioned.