Report: Tom Brady signs 3-year extension with Patriots

mgteich · Feb 26, 2013

Next year, can't Brady can turn his salary (EXCEPT FOR THE MIN) into a bonus and receiving an extra million for the effort?

Fencer said:
Not easily.

The simplest way to restructure is to guarantee previously unguaranteed money, which has the effect of spreading out its cap hit over the remaining life of a contract. That possibility has now been used up in its entirety, as Brady's contract is already fully guaranteed.

The second standard way to restructure is to sign a contract extension. Brady now already has a long contract. However, 3 years from now he won't, so I guess another contract extension might be possible at (for example) that time.

The third standard way to restructure, arguably, is to take an actual pay cut. As underpaid as Brady is, that doesn't seem likely.

Fencer · Feb 26, 2013

mgteich said:
Next year, can't Brady can turn his salary (EXCEPT FOR THE MIN) into a bonus and receiving an extra million for the effort?

I think all the guaranteed years are already being averaged over the life of the contract. I.e., I think there's no substantive cap difference between GUARANTEED salary and bonus.

If I'm wrong, I'm sure somebody will quickly correct me.

PatsFanStnfrd · Feb 26, 2013

Absolutely great deal for the Pats.

Manning is older than Brady and I don't see him playing for less than $20 million for Denver. Brees just held up the Saints and Flacco is about to do same to the Ravens.

What's the worst case (not one that is likely)? Say Brady's skills deteriorate by 2016? He is honorable enough to retire.

Now we should hope BB recruits some stretch the field WRs with speed. And a press corner would be nice. Let's see 'em use money wisely.

MoLewisrocks · Feb 26, 2013

Fencer said:
No. He could not THIS year have gotten a $22 million guarantee for 3 seasons from now.

The hell he couldn't. He just got $27M guaranteed. Manning is 18 months older and has a couple of seasons more mileage on his tires not to mention he has nerve damage from his neck injury and he just played for $18M guaranteed in 2012 at 36 coming off a lost season and is about to be guaranteed $40M for 2013-2014 when he will be 37-38. Brady was the unanimous league MVP in 2011 while Manning was sidelined and he was in the running to be that again for most of this season even with his most leathal weapon sidelined for much of the season and eventually IR'd and one of his two other leathal weapons sidelined for weeks and dinged up essentially for the season. He could have easily gotten $45M guaranteed on a 3 year $60M extension...and while $15M of it would be guaranteed next week anyway the other $30M wasn't. Last time out he got $48M guaranteed, and that was only 3 years ago...on the eve of a lockout.

ctpatsfan77 · Feb 26, 2013

jumbo77 said:
I actually don't like the deal. I think TB gets one more chance next year and if plays another sh^t game it's time for him to go.

The jokes almost write themselves.

Fencer · Feb 26, 2013

MoLewisrocks said:
The hell he couldn't. He just got $27M guaranteed. Manning is 18 months older and has a couple of seasons more mileage on his tires not to mention he has nerve damage from his neck injury and he just played for $18M guaranteed in 2012 at 36 coming off a lost season and is about to be guaranteed $40M for 2013-2014 when he will be 37-38. Brady was the unanimous league MVP in 2011 while Manning was sidelined and he was in the running to be that again for most of this season even with his most leathal weapon sidelined for much of the season and eventually IR'd and one of his two other leathal weapons sidelined for weeks and dinged up essentially for the season. He could have easily gotten $45M guaranteed on a 3 year $60M extension...and while $15M of it would be guaranteed next week anyway the other $30M wasn't. Last time out he got $48M guaranteed, and that was only 3 years ago...on the eve of a lockout.

Brady got a $27 million guarantee as his total salary for playing 3 years of football, starting two years from now. I agree that's less than market rates. However, I contend that a $66 million guarantee -- signed this week -- for those same 3 years would have been above market rates.

I'm surprised that you seem to be disagreeing with me, since that puts you in a position of saying that Brady's market value for a 5-year contract would have been in the range of, say, a $120 million guarantee. $120 million in earnings I could see, but not if all of it is guaranteed up front.

ctpatsfan77 · Feb 26, 2013

Fencer said:
I think all the guaranteed years are already being averaged over the life of the contract. I.e., I think there's no substantive cap difference between GUARANTEED salary and bonus.

If I'm wrong, I'm sure somebody will quickly correct me.

IIRC, the difference is that guaranteed salary is guaranteed to pay out in the year it is earned, but is counted only against that season's cap, while bonuses are prorated.

[Otherwise, Armond Armstead's cap #s would look really funny, since IIRC the Pats guaranteed his entire 2013 salary.]

MoLewisrocks · Feb 26, 2013

Fencer said:
I think all the guaranteed years are already being averaged over the life of the contract. I.e., I think there's no substantive cap difference between GUARANTEED salary and bonus.

If I'm wrong, I'm sure somebody will quickly correct me.

Consider yourself corrected. There is an apples and oranges difference between any salary, guaranteed or otherwise, and signing bonus. The only thing averaged over the life of a contract is signing bonus. Brady has $6.8M of that from his prior deal and recent restructure sitting atop the first two years of the current deal. His salaries for the first two years of this deal are said to be $7-8M. That likely means they already converted his $5M roster bonuses and perhaps the difference between his old and new remaining salaries due on that deal in each of the remaining seasons to signing bonus along with the $3M he reportedly received in additional signing bonus on the new deal. Otherwise his cap #'s on the last 3 years would be his salary + $600K. And they aren't. What that doesn't change is he agreed to 3 new money years at $9M per on average. That is unheard of. The trade off for him was it's guaranteed money, as is the rest of the deal. Guaranteeing $60M is a first in the league. Even if $15M of it was going to be guaranteed in two weeks anyway.

That said, there is nothing to preclude them converting guaranteed salary into signing bonus going forward. That is a simple restructure. No additional money required. The benefit to the player is he doesn't have to wait for that money to be parceled out over 17 weeks in season. They write him a check for all but a little less than a million in March...

But again, at the reported cap #'s on this deal they should have no need to restructure. It wouldn't be in Brady's best interest to allow them to because it could again make his final year or two here painful based on cap hit. And that seems to be what he did this to avoid.

mgteich · Feb 26, 2013

We can argue this next year, but spreading $8M of next year's salary over four years hardly makes Brady's cap him onerous. It would seem that this strategy could help bridge the couple of years of flat cap numbers. $8M freed up this year and an addition $6M next year would really help us.

MoLewisrocks said:
But again, at the reported cap #'s on this deal they should have no need to restructure. It wouldn't be in Brady's best interest to allow them to because it could again make his final year or two here painful based on cap hit. And that seems to be what he did this to avoid.

MoLewisrocks · Feb 26, 2013

Fencer said:
Brady got a $27 million guarantee as his total salary for playing 3 years of football, starting two years from now. I agree that's less than market rates. However, I contend that a $66 million guarantee -- signed this week -- for those same 3 years would have been above market rates.

I'm surprised that you seem to be disagreeing with me, since that puts you in a position of saying that Brady's market value for a 5-year contract would have been in the range of, say, a $120 million guarantee. $120 million in earnings I could see, but not if all of it is guaranteed up front.

OK, I see what you're hung up on but nobody gets a fully guaranteed contract in this league at market rates up front. But the stars and particularly the QB's get half of their deals in guaranteed money, that is what seperates them from the mid level guys who may approach them in AAV. What you are for some reason unable to grasp is the significance of what Brady just did. Nobody agrees to half market deals guaranteed or otherwise. They want the ability to earn that market rate in place over and above any guarantees. He passed that up and I don't think he did it because he thinks he'll probably suck by then. If he felt that way he would have just played out the string on this deal and retired. He did this because he sees how the cost of one player is seriously erroding the ability of many teams (including those whose QB's can't carry his jock) to compete from a financial perspective. Because he wants to win more than he wants to deposit bigger checks than his peers, he said no mas. I doubt many of his peers will follow suit, but a few may take note and reign in their agents because at the end of the day losing sucks. Not to mention getting cut somewhat arbitrarily because a team just can't justify your cap # or having to take a pay cut to hang around does too. Brady doesn't want to go out that way, and now he won't have to even think about that. And if it works and we win another ring or two, that legacy will make Montana's pale in comparison and perhaps ramp up the pressure on idiotic owners to begin growing the balls to say no mas to QB's who by and large haven't earned the insane money they are "commanding"...and what a legacy feather that would be.

MoLewisrocks · Feb 26, 2013

mgteich said:
We can argue this next year, but spreading $8M of next year's salary over four years hardly makes Brady's cap him onerous. It would seem that this strategy could help bridge the couple of years of flat cap numbers. $8M freed up this year and an addition $6M next year would really help us.

You can argue it all you want. I believe Brady's had his say and is done arguing. As am I. Kraft has no leverage left. He got more out of Brady than anyone in their right mind could have ever anticipated. They layed all their cards on the table in the last hand. Brady could still be tagged in 2018 given his final cap #, and he will want that option just in case he keeps aging like fine wine and Bill is still enjoying coaching and they haven't found the second coming in the meantime.

We are presently more than $20M under the 2014 cap with few glaring holes to plug via extension or FA. And don't think Bill is going to spend all of the cap at his disposal in one season, he will carry $4-5M over again. And the cap will begin to rise by 2015. It's just not ever going to rise again by double digits. Brady's made his donation up front. Messing with it would be silly. They have other candidates who can chip in going forward.

Joker · Feb 26, 2013

heh...Borges is on the prowl....the plagiarist P.I. smells a rat and warns everyone "not so fast!"...

Renegotiation helps Pats, but let

the story is up top too. He is veery angry that Callahan is going to trumpet this as some sort of Brady beatification...but thank God our Ron is on the job to shoot down this latest Patriot blimp...

More than likely the numbers that eventually emerge from this latest charitable act will reveal Brady actually netted a short-term gain plus more guaranteed money while allowing the team to cook the books to turn a projected $43.6 million cap hit over the next two seasons into $28.6 million, a $15 million savings in cap money.

so, in one brief paragraph he paints Brady as a slick opportunist and the Patriots as underhanded "book cookers"....he's a very bitter man and yet this doesn't stop him from casting aspersions on others that may or may not be true when HE is known liar and proven thief. Just an all around weirdo.

MoLewisrocks · Feb 26, 2013

ctpatsfan77 said:
The jokes almost write themselves.

Speaking of jokes, Borges weighs in... No way Brady could be this altruistic. It's a conspiracy and Kraft will now use Brady to club discounts out of the rest of the baby seals on the roster. It's all cooked books...:blahblah:

No way this has a happy ending. Ron has waited 14 years to be able to wag his finger at us and say suckers, I told you all this egoless team crap would all blow up on Kraft and Belichick one day...

Brady got something out of this. He's not stupid. But he also gave something up because neither are Kraft or Belichick. The possibility of earning $20M+ per and having $26M cap hits and finally joining the $100M mine's bigger than yours club in his 2015-17 seasons if not here then somewhere...Just like Peyton Manning... That benefitted the organization. And Ron is berserk as a result. He will be combing thru the details of Brady's new contract with a fine tooth comb and will eventually be back to crow that Brady got $3M more in 2013 money and didn't lose a cent up front, so there...

Ignore him. This deal is as good as it sounds and as good as it gets. He just can't fathom how that happened to these clowns.

Renegotiation helps Pats, but let

Fencer · Feb 26, 2013

MoLewisrocks said:
What you are for some reason unable to grasp is the significance of what Brady just did.

That is not the comment of somebody who both:

Read my posts correctly
Is in the mood to show ordinary courtesy

Fencer · Feb 26, 2013

Yep. I was wrong about guarantees. Bottom of page 95 (by their pagination) in http://images.nflplayers.com/mediaResources/files/PDFs/General/2011_Final_CBA.pdf

Thanks for the corrections.

ausbacker · Feb 26, 2013

MoLewisrocks said:
Speaking of jokes, Borges weighs in... No way Brady could be this altruistic. It's a conspiracy and Kraft will now use Brady to club discounts out of the rest of the baby seals on the roster. It's all cooked books...:blahblah:

No way this has a happy ending. Ron has waited 14 years to be able to wag his finger at us and say suckers, I told you all this egoless team crap would all blow up on Kraft and Belichick one day...

Brady got something out of this. He's not stupid. But he also gave something up because neither are Kraft or Belichick. The possibility of earning $20M+ per and having $26M cap hits and finally joining the $100M mine's bigger than yours club in his 2015-17 seasons if not here then somewhere...Just like Peyton Manning... That benefitted the organization. And Ron is berserk as a result. He will be combing thru the details of Brady's new contract with a fine tooth comb and will eventually be back to crow that Brady got $3M more in 2013 money and didn't lose a cent up front, so there...

Ignore him. This deal is as good as it sounds and as good as it gets. He just can't fathom how that happened to these clowns.

Renegotiation helps Pats, but let

Brady, Belichick and Kraft do a deal that gives the Patriots financial flexibility to improve a competitive roster and all Borges can do is pour cold water on it? Once a sour man, always a sour man.

MoLewisrocks · Feb 26, 2013

Jason posted his thoughts on what the deal actually entails earlier. If King's cap #'s are correct, and Curran says he has confirmed they are, then the deal is he got a $3M signing bonus that prorates at $600K per year for 5 years. In addition he gets $6.4M in 2013 salary, $7.4M in 2014 salary and $7M in 2015 salary, all of which according to King are guaranteed. Then in 2015 he gets a $16.2M bonus of some sort that prorates over the final 3 years at $5.4M. In addition he gets salaries of $8M in 2016 and $9M in 2017.

The first two years include his remaining amortized bonus money from the old deal. $6.8M per year. That can never be moved. In the final 3 years this new deal adds only $600K per in amortization per year to the deal, so a bonus of some sort was crafted to add $5.4M per to each of those years or $6M in amortized money and the $7, $8, and $9M salaries.

King initially reported $41M guaranteed, which would top Brees total guarantee on his deal and top the $40M Manning will be guaranteed once he passes his physical prior to March 12th. Since then Breer and Rap have reported that all $60M of the deal is guaranteed. Not sure if that is fully or partially or rolling. If the $16.2M is an option bonus it can't be guaranteed or it would be spread over the cap in 5 years and not 3. They may mean it is implicitly guaranteed (something Miguel pointed out to me long ago) simply by virtue of they won't cut him as opposed to picking it up because they would still owe him $25M or thereabouts in guaranteed salary. And that as a one time guaranteed money based cap hit would pretty much guarantee they pick up the option. Which likely means if he is toast in year 5 they could walk away and take a $6M dead cap hit while saving $9M in salary. But if he's still significantly better than any alternative they've uncovered they won't be driven to do away with him because he's not worth that salary.

This deal pretty much does what Kraft said was the way he thought Brady's career would end, when he can't produce at all or says he's ready for it to.

Until someone in the media (who understands the devil in the details better than King who got spoon fed a summation) gets their hands on the actual deal, this is what it appears to be.

PS - all those .4's are likely not salary but workout bonus. So the actual 2015 bonus is likely $15M as Jason surmises.

Thoughts on Tom Brady's 3 Year Extension - Over the Cap

goheels22002 · Feb 26, 2013

MoLewisrocks said:
Jason posted his thoughts on what the deal actually entails earlier. If King's cap #'s are correct, and Curran says he has confirmed they are, then the deal is he got a $3M signing bonus that prorates at $600K per year for 5 years. In addition he gets $6.4M in 2013 salary, $7.4M in 2014 salary and $7M in 2015 salary, all of which according to King are guaranteed. Then in 2015 he gets a $16.2M bonus of some sort that prorates over the final 3 years at $5.4M. In addition he gets salaries of $8M in 2016 and $9M in 2017.

The first two years include his remaining amortized bonus money from the old deal. $6.8M per year. That can never be moved. In the final 3 years this new deal adds only $600K per in amortization per year to the deal, so a bonus of some sort was crafted to add $5.4M per to each of those years or $6M in amortized money and the $7, $8, and $9M salaries.

King initially reported $41M guaranteed, which would top Brees total guarantee on his deal and top the $40M Manning will be guaranteed once he passes his physical prior to March 12th. Since then Breer and Rap have reported that all $60M of the deal is guaranteed. Not sure if that is fully or partially or rolling. If the $16.2M is an option bonus it can't be guaranteed or it would be spread over the cap in 5 years and not 3. They may mean it is implicitly guaranteed (something Miguel pointed out to me long ago) simply by virtue of they won't cut him as opposed to picking it up because they would still owe him $25M or thereabouts in guaranteed salary. And that as a one time guaranteed money based cap hit would pretty much guarantee they pick up the option. Which likely means if he is toast in year 5 they could walk away and take a $6M dead cap hit while saving $9M in salary. But if he's still significantly better than any alternative they've uncovered they won't be driven to do away with him because he's not worth that salary.

This deal pretty much does what Kraft said was the way he thought Brady's career would end, when he can't produce at all or says he's ready for it to.

Until someone in the media (who understands the devil in the details better than King who got spoon fed a summation) gets their hands on the actual deal, this is what it appears to be.

PS - all those .4's are likely not salary but workout bonus. So the actual 2015 bonus is likely $15M as Jason surmises.

Thoughts on Tom Brady's 3 Year Extension - Over the Cap

Tremendous work to describe the details of the 2013 Brady deal.

This is a blueprint for aging superstars who can and wish to keep playing into their final years. There are similarities to Ray Lewis' last deal with Baltimore.

Ray Lewis' three-year, $22 million contract in 2010 included a $6.25 million signing bonus and $15.5 million in guarantees to keep him cap-friendly and a Raven for life. While his deal was not an extension, it achieved the same objectives. He had voidable years at the end and incentives as well.

The NFLPA should take note of how these deals give players and teams the opportunity to break the cycle of escalating cap hits for marquee players to the point where they are forced into premature retirement and leaving teams with whom they are an iconic presence.

PatsFanSince74 · Feb 26, 2013

Hdlsa said:
Dude this reads like the ravings of paranoid schizophrenic with a persecution complex. I'm gonna leave and let you feel like you successfully defeated a troll because you and everyone else who dismissed or misinterpreted my question have convinced me that it is absolutely pointless to try to have a discussion or explain myself to you people.

Good luck in life bro, I'm glad that you have convinced yourself of your superiority to Jets fans because in reality, team affiliations aside, judging by your behavior there aren't many people you can feel that way about.

tsk. tsk. and i had defended you above as not being a troll and had actually answered your question seriously. but you ignored my response.

however, you do only seem to respond to posts that are or that you can construe as incendiary.

let's see...ignoring people who want a serious discussion...responding in an inflammatory way to others...that would, indeed, make you a....drum roll...Troll.

jcdavey · Feb 26, 2013

Hdlsa said:
How so? Whether or not we are able to resign Talib and Welker to competitive contracts is going to matter a lot next season, and if Brady was playing for vet min there would be no question that they return along with everyone else we need to sign/resign. I don't really follow the Eagles especially their free agent transactions so I don't know what you are talking about.

definitely more important to lock up your own

i just meant signing high priced free agents away from other teams rarely works out in terms of everyone's expectation here (superbowl win)

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