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Joe Flacco now the highest paid QB in NFL history

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Here is what I think will be a close guess at the structure:

2013 - Signing bonus of $30M
2013 - $1M salary - cap hit $7M
2014 - Option bonus of $20M
2014 - $3M salary - cap hit $13M
2015 - $8M salary - cap hit $18M (First three years' base salaries guaranteed)
2016 - $13M salary - cap hit $23M
2017 - $19M salary - cap hit $29M
2018 - $26.6M salary - cap hit $30.6M

This matches all the 'rumors' about $62M over three years (the article linked to before about a lot of 'cash' in 1st 12 months is satisfied by the 2 big bonuses), and matches the total value and years.

Don't you think there may be a higher grouping of cap hits in the middle, which would lower the suggested amount towards the end? Wouldn't this match more with what has typically been the Ravens/Ozzie Newsome style of structure (obviously realizing that a 120 pact is going to be harder to structure simply based on the high amount of money)?

Or would the 62 million over the first 3 yrs prevent this from occurring on some level, which may be the case? In that aspect they'd be risking too much over the first 4-5 yrs. If that's the case then I can completely understand why it had to be tiered higher than most due to the high amount of money in the beginning.

One thing to keep in mind too, is that by 2017 and 2018 those mid to late 20's cap hits will likely be the norm around the NFL, at least with a lot of teams depending on when their QBs sign their new deals. It certainly will be the norm for aav.
 
Seems pretty simple to me. They're frontloading the actual payout to make Flacco happy, but backloading the cap hits to make the team happy.
 
I agree.

Also, this is the "normal" way to do big contracts, realizing that it likely that there will be dead money after the player is gone. The teams use cap money from 4-5 years in the future (when the cap will be higher) to meet present needs. It is a rational strategy, but certainly not the only strategy.

Seems pretty simple to me. They're frontloading the actual payout to make Flacco happy, but backloading the cap hits to make the team happy.
 
Seems pretty simple to me. They're frontloading the actual payout to make Flacco happy, but backloading the cap hits to make the team happy.

I'm sure we'll have some more of our better capologists on the forum weigh in with their thoughts at some point, but I honestly don't think that it should be getting so much flack for the way it was set up etc. I think a lot of people underestimate what seems to be a very decent approach by GM Ozzie Newsome. These aren't the NY Jets we're talking about.

I'd like to know how the best approach to do a 120 million dollar deal would be, taking into account that you don't want to backload to where it puts you in a bind, but also that you want the cap hits tiered higher every year to take into account the raising of the salary cap itself.

I think you're right. Both sides seemed to have a thing or two that was important for them, and I think both sides pretty much agreed on something fair at the end of the day. Flacco got his money in the first 3 yrs, and also became the highest paid QB ever (for the moment). The front office got their 2013 cap hit down and tiered their payments accordingly, with the 6th yr too.
 
Don't you think there may be a higher grouping of cap hits in the middle, which would lower the suggested amount towards the end? Wouldn't this match more with what has typically been the Ravens/Ozzie Newsome style of structure (obviously realizing that a 120 pact is going to be harder to structure simply based on the high amount of money)?

Or would the 62 million over the first 3 yrs prevent this from occurring on some level, which may be the case? In that aspect they'd be risking too much over the first 4-5 yrs. If that's the case then I can completely understand why it had to be tiered higher than most due to the high amount of money in the beginning.

One thing to keep in mind too, is that by 2017 and 2018 those mid to late 20's cap hits will likely be the norm around the NFL, at least with a lot of teams depending on when their QBs sign their new deals. It certainly will be the norm for aav.

They definitely may, I was just tossing out a hypothetical. But as for why they may not, I can think of a couple reasons.

One, is that Suggs is a FA in 2015, and Ngata in 2016, so from 2013-2015/6 it would be hard to load in a lot more of Flacco's deal than my hypothetical (though of course it could be done if absolutely necessary), due to these two getting to the end of their heavy-cap deals. Ray Rice's deal also ends before Flacco's 5th year.

Two, and most importantly, ignoring the case where the Ravens just want to get rid of Flacco, those last two heavy cap years of Flacco's deal can easily be lightened up with a restructure due to Flacco's age (only 32 before the 5th year of deal). Restructures require extensions, and when the player is at an age where you need to extend a contract past his likely viable age just to reduce present-time cap hits, you get in real trouble. (why a guy like James Harrison cannot/will not get extended/restructured to ease Steelers cap situation for 2013). That wouldn't be the case here.

But I completely admit the Ravens may actually lighten those last two years (of my hypothetical) by fattening up the middle a bit. I am fairly confident the first year or two will be pretty light though; I think Ozzie Newsome will try to keep as many pieces to 2012's puzzle as humanly possible without going totally insane with borrowing future cap.
 
2012 league minimum base salary for a Flacco is 700 K

What ever happened to that clown claiming to be a Pats fan who posted that Brady should play for the vet minimum?
 
What ever happened to that clown claiming to be a Pats fan who posted that Brady should play for the vet minimum?

Ringling Bros/Barnum&Bailey circus revoked his junior clown-in-training permit and demoted him to elephant stool cleanup crew...2nd shift
 
It was a lose-lose situation for the Ravens. They should have locked him in last year. They are now obligating...what...1/6th of their cap for a QB that is not an elite QB? I thought I read somewhere that about $60m is guaranteed? This is like the Sanchez contract, except that Flacco is a little better. Once teams figure out that Baltimore can't run anymore and their whole game is throwing jump balls over smaller DBs, teams will adjust with bigger, more physical DBs. heck.....Seattle already has the blueprint. And then Baltimore is stuck with a pretty average QB who isn't cuttable because it would cost the team $30m in cap hits to get rid of him.
 
It was a lose-lose situation for the Ravens. They should have locked him in last year. They are now obligating...what...1/6th of their cap for a QB that is not an elite QB? I thought I read somewhere that about $60m is guaranteed? This is like the Sanchez contract, except that Flacco is a little better. Once teams figure out that Baltimore can't run anymore and their whole game is throwing jump balls over smaller DBs, teams will adjust with bigger, more physical DBs. heck.....Seattle already has the blueprint. And then Baltimore is stuck with a pretty average QB who isn't cuttable because it would cost the team $30m in cap hits to get rid of him.

Couldn't lock him in last year. They offered him 6yr - $96M last year and he turned it down. His agent is currently claiming that he (the agent) advised Flacco to sign it, and Flacco said he wanted to play out 2012.

And Flacco is a ton better than Sanchez, I am sorry. A ton. Though I agree Flacco was "overpaid" based on contract rank compared to talent rank. But so was Eli in 2009 when he signed league-best QB deal (with a SB and mediocre regular season stats). It happens. But that is the nature of the NFL these days, and the contract rank will start falling very soon. Within a year, it will be surpassed. By the end of the deal, it won't be in the top 5.

And the Ravens had no real choice. In a league where below average QBs fetch $14-16M (Fitzpatrick, Vick, Sanchez, etc), Flacco's "fair price" can't be less than $17M, maybe even $18M with inflation and age factored in. The 'premium' paid in that case is around $2.1M - $3.1M per year, or around the cost of having to start one recent draftee instead of a middle-of-road FA at LB. In and of itself that premium will not sink the team. However, a couple more such overpayments or lead-anchor contracts or a terrible draft, and things could quickly get ugly.
 
So it's really a 7 year deal for 127 million, which averages out to be 18.19 million per year.

Pretty fair if you ask me, especially considering that many QBs make 18 million aav right now in 2013, let alone 5-6-7 yrs down the line.
 
The reported 2013 cap hit is 7 million dollars, which would leave them with approx. 10-11 million dollars at the moment to re-sign a couple of their own. Of course there's also a belief that Jacoby Jones will be dumped, which would save them an additional 4 million dolllars and raise their current cap space (after Flacco's 2013 cap hit) to approx. 15 million again.

I am sure that they'll end up losing a couple of players, but their #1 CB L.Webb is coming back, so Cary Williams shouldn't be too high on their list at his current demands. That one's a no-brainer.

I would imagine that they'll be focusing on one of Ellerbe/Kruger before Ed Reed. As the old saying goes, it's better to let a player walk away a year too early as opposed to a year too late. Reed may very well be replaced with a high draft pick of a safety.



Yeah, I definitely agree on some level, but it's been widely reported that Flacco will be receiving 62 million+ over the first 3 yrs, so we do have some idea of what some of the specifics are--especially when you add in the 7 million dollar cap hit for 2013.

I think a good common ground would be to admit that any type of big deal like this is going to be somewhat of a gamble, but I also think they addressed some of their concerns with the higher payment in the first 3 yrs, along with the low 2013 cap hit. I don't see it structured any worse than most of the other NFL contracts, so that would be my main point. I think the misconception that they will suddenly be bad or that their team will be gutted are overblown entirely, although like I said I also see the concern for a 120 million dollar contract too.
Time out Supe, you question me and make a big deal about Baltimore's history of "front loading their contracts, and now you tell me his first year cap number is going to be $7MM. That is the OPPOSITE of front loading. If he's averaging close to $20MM over 6 or 7 years, then by having his first year at $7MM will necessitate have several years well over that average

Now I have no idea what you were taling about in your original response to me. In fact it looks like the ravens are being less conservative than I thought they' be. That's how bad there cap situation is. They needed (if what you say is true) to keep Flacco's number a full $13MM below the average just to give them some working room to resign a few of their own players. All they are doing is setting themselves up for some future pain.

I mean, how would you feel if the Pats came out and resigned Welker, Volmer and Talib to market deals and the first year's cap number for all three combined for less than $9MM. It would be great for this year, but it would kill the Pats cap number in the future.
 
Time out Supe, you question me and make a big deal about Baltimore's history of "front loading their contracts, and now you tell me his first year cap number is going to be $7MM. That is the OPPOSITE of front loading. If he's averaging close to $20MM over 6 or 7 years, then by having his first year at $7MM will necessitate have several years well over that average

Ken, I'm not questioning you or meaning to make a big deal about anything.

You are not taking into acct that they are paying him 62 million (50% of the pact) in the first 3 yrs....and that he'll see crazy guaranteed money in the first 12 months.

If you refer to the BAL fan and his postings in the previous page or so, you'll see that there are likely 2 bonuses that total guaranteed money of 50+ million dollars (way more than Brees) in the first year/second year.

You're stuck on the year one cap hit, which had to be shaped to be low as they needed it to be that way. That was really one of BAL's bigger concerns.

In a way the years cap hits will all still be tiered upwards (so in a way it may be the definition of backloading to you) like most contracts are, due to BAL's wishes since the cap will be increasing more and more each yr, but they also pay out 1/2 of the contract in the first 3 yrs of a 7 yr deal.

At the end of the day BOTH Baltimore and Flacco got their wishes on some levels, (Flacco since he sees a lot of guaranteed money in the first couple/few years), so you could actually have 3 different stances of frontloaded (due to the 50% of the pact paid in 2 bonuses and through yrs 1-3), backloaded (due to the rising cap hits--which is the structure that all front offices want due to the increasing of the cap dollars every year in a slow fashion as long as it's not "ridiculously backloaded" like stupid teams do), or you could even say that it's a fair deal that is set up like many high paying pacts...and there are arguments that all 3 could be correct on some level.
 
In fact it looks like the ravens are being less conservative than I thought they' be. That's how bad there cap situation is.

It has nothing to do with the Ravens "being in a bad cap situation" besides the fact that they needed the YEAR ONE cap hit to be lessened due to having some key free agents coming up. They are in a fine situation, or as good as many other teams, moving forward. You'd be right in saying that they were up against the wall a bit this year only starting at 20 million under, but you'd also have to take into acct that they didn't know if they'd have to franchise Flacco (a guaranteed huge cap hit of 15-19 million depending on which tag they used), and the fact that they had a few of their own important players to try and re-sign.

Let's remember that this whole "cap hell" thing started after they won the SB, when many media outlets and fans started to speculate that they'd have to gut their team, which never happened. It wasn't being talked about a month or so ago besides the fact that they may have to get "creative" this offseason due to the situation of Joe Flacco.

All of these "cap hell" speculation articles were due to the fact that most everyone envisoned a long-term deal as being impossible to get done, so they were wrong. If the front office needed to pay Flacco the franchise tag, which was the premise of all of these articles, then they'd have had their balls in a bind. That didn't happen, and as usual the media's speculation tainted many fans' opinions that the Ravens were going to have to gut their team. This long term deal prevents that from happening, and proves those who said it as very incorrect.

They needed (if what you say is true) to keep Flacco's number a full $13MM below the average just to give them some working room to resign a few of their own players.

I'm not really sure why you consider this "13 million below average?" Average of what? Are you talking about aav, in the terms that he's making 18.19 million per year over those 7 yrs on aav? Is that why you think he should have a cap hit of 18 million dollars this year? If that were the case then we'd never see any QBs restructure to take more guaranteed money now so that they can save their teams with much lesser cap hits.

What about guaranteed bonuses etc? There are plenty of deals that are set up to have a lessened cap hit in the first year. I think you are doing something that may be twisting your opinion a bit:

I think you're forgetting about the guaranteed money that Flacco's going to see (much like Brady or any other franchise QB) in his first initial years in signing bonus(es). From the front office's POV, that is done to help keep the cap hits lower. From the player and agents POV that is done to allow them to see big guaranteed pymts in their bank accts immediately. In the Ravens case it was important to them to keep this year as low as possible, since they had some of their own etc, so they decided to guarantee him the money in another fashion. How is this any different than any of the other restructures that we see all the time? They take more guaranteed money now to lessen their cap hits which is viewed as "taking one for the team" in order to clear up precious cap space.

I also think you are somewhat underestimating the huge amount of the contract, and the fact that in 4-5 yrs down the line there will be plenty of other QBs with cap hits in the early to mid 20's, or even in the mid to late 20's, just like Flacco's will be.

Considering that 18.19 million a year aav will be very reasonable in 4-5-6 yrs down the line and that they didn't "backload" to the tune of some ridiculous 35 million dollar/38 million dollar hits in the last couple of years (which would be my definition of backloading), I think they did just fine. You may have a different opinion though, and that's fine too. I respect it no matter what, and to be honest I really don't even care that much in the bigger pictue. I don't think they did anything to put them in 'cap hell' but if they somehow did then all the better for us.
 
It has nothing to do with the Ravens "being in a bad cap situation" besides the fact that they needed the YEAR ONE cap hit to be lessened due to having some key free agents coming up. They are in a fine situation, or as good as many other teams, moving forward. You'd be right in saying that they were up against the wall a bit this year only starting at 20 million under, but you'd also have to take into acct that they didn't know if they'd have to franchise Flacco (a guaranteed huge cap hit of 15-19 million depending on which tag they used), and the fact that they had a few of their own important players to try and re-sign.

Let's remember that this whole "cap hell" thing started after they won the SB, when many media outlets and fans started to speculate that they'd have to gut their team, which never happened. It wasn't being talked about a month or so ago besides the fact that they may have to get "creative" this offseason due to the situation of Joe Flacco.

All of these "cap hell" speculation articles were due to the fact that most everyone envisoned a long-term deal as being impossible to get done, so they were wrong. If the front office needed to pay Flacco the franchise tag, which was the premise of all of these articles, then they'd have had their balls in a bind. That didn't happen, and as usual the media's speculation tainted many fans' opinions that the Ravens were going to have to gut their team. This long term deal prevents that from happening, and proves those who said it as very incorrect.



I'm not really sure why you consider this "13 million below average?" Average of what? Are you talking about aav, in the terms that he's making 18.19 million per year over those 7 yrs on aav? Is that why you think he should have a cap hit of 18 million dollars this year? If that were the case then we'd never see any QBs restructure to take more guaranteed money now so that they can save their teams with much lesser cap hits.

What about guaranteed bonuses etc? There are plenty of deals that are set up to have a lessened cap hit in the first year. I think you are doing something that may be twisting your opinion a bit:

I think you're forgetting about the guaranteed money that Flacco's going to see (much like Brady or any other franchise QB) in his first initial years in signing bonus(es). From the front office's POV, that is done to help keep the cap hits lower. From the player and agents POV that is done to allow them to see big guaranteed pymts in their bank accts immediately. In the Ravens case it was important to them to keep this year as low as possible, since they had some of their own etc, so they decided to guarantee him the money in another fashion. How is this any different than any of the other restructures that we see all the time? They take more guaranteed money now to lessen their cap hits which is viewed as "taking one for the team" in order to clear up precious cap space.

I also think you are somewhat underestimating the huge amount of the contract, and the fact that in 4-5 yrs down the line there will be plenty of other QBs with cap hits in the early to mid 20's, or even in the mid to late 20's, just like Flacco's will be.

Considering that 18.19 million a year aav will be very reasonable in 4-5-6 yrs down the line and that they didn't "backload" to the tune of some ridiculous 35 million dollar/38 million dollar hits in the last couple of years (which would be my definition of backloading), I think they did just fine. You may have a different opinion though, and that's fine too. I respect it no matter what, and to be honest I really don't even care that much in the bigger pictue. I don't think they did anything to put them in 'cap hell' but if they somehow did then all the better for us.
Supe, that $13MM that they are saving this coming year is $13MM that will have to be added to that $20MM average down the road. And while both Brady and Flacco get a huge portion of their contract in the first 2 or three years, there is a HUGE difference between the 2. While Brady's real salary will shrink by over half after the 2014 season, Flacco's will keep on growing. And while it won't reach the $30-5MM point we are seeing in some contracts, it will surely exceed $25MM at a time when Brady's cap is going to be $15MM.

While this deal is what the Ravens had to do to keep their QB, and have a chance at keeping some of their players. (Remember if they are at 20MM now, you have to factor in the $7MM for Flacco, the $4MM for rookies, and the 2MM for reserve. That leaves only $7MM available for FA's if I'm reading you right. I'm not sure the Pats can do what they need to do with more than $25MM in space. So the Ravens can't be too happy with trying to do all their business with just $7MM, and with the knowledge that Flacco's number will rise precipitously over the next few years

BTW- I'm not saying that this was a bad deal by any means. If your QB wins a superbowl an has leverage, ANY team is going to have to pay out at least $20MM/yr and a huge chunk up front. Just look at what the Pats had to get Brady to agree to, to get his number down to "just" $13-15MM/yr

With QB's at $20MM/ and offensive/defensive lineman, WR's, and CB's all at a $10MM franchise tag, it doesn't take too many players before a very small percentage of player control a very disproportionate amount of your cap.
 
Supe, that $13MM that they are saving this coming year is $13MM that will have to be added to that $20MM average down the road.

You aren't taking into acct the guaranteed bonuses Ken, which is 100% why all of the QB restructures take place. It's the same principle, take a bigger guaranteed amount now in a bonus, and shrink your cap hit in the process to help the team save precious cap space.

Some of that difference between the 7 million year one cap hit and your thought that it should be a 18.19 million dollar cap hit will indeed get added on to the back years, so you're right there, but you are also forgetting about the bonus money and the split of 2 guaranteed pymts. The guaranteed money will be lessening his base salary, so the difference won't be as much as you think it will.

Ultimately I'm not really disagreeing with the fact that there will be some bigger cap hits of mid 20's plus in the later years, but that is also a time of 4-5-6 yrs down the line, when as many as 12 or more QBs can have that exact same number. Another thing to keep in mind is that for a deal of this magnitude they are probably assuming a restructure or two down the line, so all of this nonsense that we're talking about likely won't matter anyway.

It's a yearly exercise for every NFL team in terms of cap mgmt. Money gets shuffled, vets are let go, players get restructured, some key players are even cut. Every year it's the same thing. The object is to field the best team under the restrictions of the cap. Some teams gamble more for the future. I'm not seeing BAL doing that, besides the necessary gamble that it takes to give your QB that kind of market money over a long term deal.

I just don't think it necessarily puts them in cap hell, since the whole premise of the 'cap hell' was by reporters and fans based on the fact that the Ravens wouldn't have enough time to work out a long term deal and they'd be forced to franchise him at close to 20 million, thus forcing them to get rid of key players such as Suggs, Boldin, etc. Since that didn't happen, there's no real reason to continue discussing it, and that was my initial point when I commented on your post. BAL isn't in cap hell. That is incorrect, yet so many still seem to want to believe that to somehow make themselves feel better, like our front office is so much better than theirs, and they are stupid for signing their franchise QB to a 18 million dollar aav contract (even though that's at least the going rate at the moment, let alone 5-6 yrs down the line...)

You seemed to incorrectly think that they were in such a tight spot both now and for the future, but the truth of the matter is that they were 20 million under the cap, which is actually better than a lot of teams. If you look at their structures and their future year dealings, you'll see that they aren't in that bad of shape.

And while both Brady and Flacco get a huge portion of their contract in the first 2 or three years, there is a HUGE difference between the 2. While Brady's real salary will shrink by over half after the 2014 season, Flacco's will keep on growing. And while it won't reach the $30-5MM point we are seeing in some contracts, it will surely exceed $25MM at a time when Brady's cap is going to be $15MM.

That reason is solely because Brady took MORE guaranteed money now in the form of bonuses to lessen the cap hit later on. Joe Flacco and the Ravens could end up doing much of the same. We don't know what effect it may have on future dealings yet.

I think what the Pats did was very smart and beneficial to the team, but that money doesn't just disappear....it is paid to Brady in the form of guaranteed bonuses. No one is stopping any other team from doing the same thing, and we'll likely see that from some, possibly even BAL since Flacco will still only be 34 at the end of this deal. By the time he's 31-32 they could have already restructured it once, and be looking towards an extension.
 
So the Ravens can't be too happy with trying to do all their business with just $7MM, and with the knowledge that Flacco's number will rise precipitously over the next few years

This is what every NFL team has to go through, especially those who have franchise QB's that have higher salaries. I'm not sure about the actual number after their rookies etc, but I thought it was about 9-10m after Flacco's year one cap hit. Regardless, NE is in the top 10 as far as cap room, so BAL would fall somewhere in the middle. When you just signed your franchise QB and are falling in the middle, you aren't in that bad of shape, which is how this conversation got started in the first place.

Also keep in mind that they can make another move or two (cutting J.Jones saves them 4 million more) before free agency starts in 11-12 days. I just don't see how they are any more different than most other NFL teams, that's all. That's where we seem to disagree.


BTW- I'm not saying that this was a bad deal by any means. If your QB wins a superbowl an has leverage, ANY team is going to have to pay out at least $20MM/yr and a huge chunk up front. Just look at what the Pats had to get Brady to agree to, to get his number down to "just" $13-15MM/yr

Another huge misconception. You're going to tell me that Brady should be entered into sainthood because he took a "pay cut," right?

LOL.

He took more money now to lessen his base salary and overall cap hit later. The Pats didn't have to get him to "agree to" that much in all honesty, but that's a whole different subject and it's getting late.

At any rate, good talking even if we didn't agree on everything. I'm sure like many other things, the truth likely lies in the middle, so keep that in mind.

Good night, you old coot
 
Good night, you old coot

And for what it's worth, that was my attempt at a term of endearment after a spirited debate..certainly not a sign of disrespect. Sometimes over the web it's difficult to tell what some intentions are, and attempts at jokes or lightheartedness fall by the waistside.

I suppose at 38 I'm getting a bit too old to be throwing out age barbs, and besides Wicked Pissah is the official patsfans.com old coot anyway, so I don't want him to feel left out or have his feelings hurt.
 
So after all this it looks like the bottom line is that the Ravens rep for a smart front office is deserved. Newsome et. al. signed their franchise QB for a big overall number that's distributed over the years in a way that anticipates a TV driven rising cap # and allows them modest cap money to re-sign some of their key players. The only way they get hurt is if Flacco's 2012 is a couple sigma aberration above the mean. Baltimore will remain a playoff bound team, probably winning their division again. Their main problem is an aging defense, but they get their stellar CB back from injury in 2013.
 
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I will allow that it was late and you weren't thinking straight.

Brady was already going to get the $30M, unless he were injured this year. Even getting paid early is a bit misleading. He is getting the bonus in twelve monthly payments. It is with interest, but interest rates are low. The bonus was a reasonable compensation for restructuring. That would have moved money into next year, and given us tax relief this year. The key thing is that the $30M is essentially compensation for the present contract.

Brady accepted less than 50% of market for the extension, with no bonus (there could have been one before Year 3). The only compensation Brady received was injury insurance; the contract is guaranteed if Brady is injured.

This contract is the most seriously discounted patriot contract that I can recall. The only other one than comes to minds is one of Bruschi's.

T
Another huge misconception. You're going to tell me that Brady should be entered into sainthood because he took a "pay cut," right?

LOL.

He took more money now to lessen his base salary and overall cap hit later. The Pats didn't have to get him to "agree to" that much in all honesty, but that's a whole different subject and it's getting late.
 
what's next..alex smith gets 130 million?
 
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