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How can we structure Rodgers deal?
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Big Gilly


Joined: 16 Feb 2013
Posts: 53
PostPosted: Tue Mar 19, 2013 11:28 pm    Post subject: How can we structure Rodgers deal? Reply with quote

I am hoping to gain some insight as to the options for structuring Rodgers contract.

I think we can assume he is going to get paid in the range of 20 mil per. The way I see it, they could structure one of two ways:

1. Front load the contract to take a big hit to our cap number today to provide more flexibilty in the future

2. Structure the deal to give the Pack more financial freedom in the shorter term

Knowing Thompson, I can assume #1, but I'd like to hear your input. What I am really curious about is how would they be able to structure the deal to allow the ability to reup Matthews and Raji - without crippling the team long term.

Thoughts?
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blankman0021


Joined: 02 May 2007
Posts: 1928
Location: MKE
PostPosted: Wed Mar 20, 2013 12:11 am    Post subject: Re: How can we structure Rodgers deal? Reply with quote

Big Gilly wrote:
I am hoping to gain some insight as to the options for structuring Rodgers contract.

I think we can assume he is going to get paid in the range of 20 mil per. The way I see it, they could structure one of two ways:

1. Front load the contract to take a big hit to our cap number today to provide more flexibilty in the future

2. Structure the deal to give the Pack more financial freedom in the shorter term

Knowing Thompson, I can assume #1, but I'd like to hear your input. What I am really curious about is how would they be able to structure the deal to allow the ability to reup Matthews and Raji - without crippling the team long term.

Thoughts?


They don't have much choice but to backload some of the deal. You have to think the cap will rise at least 1-2 M per year. Therefore Rodgers cap number could rise that same amount.

From the rumors being passed through the grape vine were looking at a 4 year 100M extension. Adding to his current 2 year 20M deal that averages to about 18M a year. I expect his 2013 # to be approximately $18M, $20M in 14, then have it jump in 15 or 16 whenever TT expects the money to push through. I think we see the last two years at $30M per year. With that in mind, Arod might never touch those dollars. If fully expect another extension before he taps into some of that money, spreading it out and adding years ala Tom Brady.
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rbens06


Joined: 07 Jan 2008
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PostPosted: Wed Mar 20, 2013 12:30 am    Post subject: Reply with quote

Contracts, especially in the NFL (aside from rookie contracts, which are more cookie cutter now with the wage scale) are and can be very complex. In the short there are three main options for guys. Front load, back load, and average. Each obviously has its own advantage and usually are utilized depending on where a player is in his career. Rodgers situation is a little unique because he still has a deal with two years in place, which the more I think about it works to the Packers advantage. Something that needs to be kept in mind is the guaranteed money. Bree's set the mark at $60 million and Flacco just followed that up with $52 million. Percentage wise I think Rodgers will exceed both.

Something I was thinking about is if we give Rodgers a big signing bonus, lets say $48 million (I know this seems huge). Signing bonuses are spread over the life of the contact, so adding 4 years $100 million (mentioned by another poster in a different thread) would spread the $48 million over 6 years (I believe it can be spread over the existing years, but am not 100% on that) would be $8 million a year moving this years and next years cap numbers to about $18 million. That would leave a salary of $52 million over 4 years, which is $13 million a year and a $21 million cap hit a year after you add the $8 million signing bonus allocation in. Over the life of the contract each year would be palpable and not hinder any one cap. For comparison, Flacco has a year 4 cap number of $29 million, which is believed by some he will never see because that is way too disproportionate. Also he had a signing bonus of $29 million for cap hit of $5.8 million a year and his salary in year 1 is only $1 million.

Personally, I would like to see him take a smaller jump now, giving us the cap freedom now while the cap is relatively flat and have bigger numbers setup for when the TV money is suppose to kick in.
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McThreadski


Joined: 11 Mar 2013
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Location: On the Gold
PostPosted: Wed Mar 20, 2013 12:41 am    Post subject: Reply with quote

Can't we just give him a "second job" at Uncle Mike's All Night Sweater Barn for 20 million per year and then pay him 2 million against the cap and spend the rest on top flight talent to surround him with? Why am I the only guy that thinks this is a dandy idea?
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blankman0021


Joined: 02 May 2007
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Location: MKE
PostPosted: Wed Mar 20, 2013 12:54 am    Post subject: Reply with quote

McThreadski wrote:
Can't we just give him a "second job" at Uncle Mike's All Night Sweater Barn for 20 million per year and then pay him 2 million against the cap and spend the rest on top flight talent to surround him with? Why am I the only guy that thinks this is a dandy idea?


Unless you have the $20M to make it happen I think you're out of luck. Wink
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McThreadski


Joined: 11 Mar 2013
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PostPosted: Wed Mar 20, 2013 1:06 am    Post subject: Reply with quote

blankman0021 wrote:
McThreadski wrote:
Can't we just give him a "second job" at Uncle Mike's All Night Sweater Barn for 20 million per year and then pay him 2 million against the cap and spend the rest on top flight talent to surround him with? Why am I the only guy that thinks this is a dandy idea?


Unless you have the $20M to make it happen I think you're out of luck. Wink


Oh I think we could come up with the money. Use kickstarter and post it all over the web, I bet there would be more than enough cash to go around. I got $500 on it right now.
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dijatool


Joined: 17 Feb 2013
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Location: SoCal
PostPosted: Wed Mar 20, 2013 4:08 am    Post subject: Reply with quote

rbens06 wrote:
Signing bonuses are spread over the life of the contact, so adding 4 years $100 million (mentioned by another poster in a different thread) would spread the $48 million over 6 years (I believe it can be spread over the existing years, but am not 100% on that) would be $8 million a year moving this years and next years cap numbers to about $18 million.

Signing bonuses are only spread over five years. Josh is a good example:

Sitton @ Spotrac

Sitton @ OTC

I've been meaning to figure out where that is in the CBA and haven't gotten to it yet.
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gizmo2012


Joined: 11 Mar 2007
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PostPosted: Wed Mar 20, 2013 7:17 am    Post subject: Reply with quote

Rumors are Rodgers will get upwards to 25 million per year and that seems about right to me - Mathews 12 million per year or so - Raji next year 8 million if they intend to resign him, so a lot of money needs to be committed this year and next year. If Rodgers and Mathews get restructured this year which I expect, then the Packers can certainly defer some of that money to later years when the salary cap is larger. It makes sense on why TT is holding so much in cash reserves right now.
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mightybk


Joined: 14 Feb 2006
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PostPosted: Wed Mar 20, 2013 8:21 am    Post subject: Reply with quote

If you want to get around the signing bonus proration issue, just guarantee the base salaries in the first 3 years.....He still gets his guaranteed money (just not in one lump sum) and the team doesn't have to worry about the big cap hit in later years
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gizmo2012


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PostPosted: Wed Mar 20, 2013 9:16 am    Post subject: Reply with quote

mightybk wrote:
If you want to get around the signing bonus proration issue, just guarantee the base salaries in the first 3 years.....He still gets his guaranteed money (just not in one lump sum) and the team doesn't have to worry about the big cap hit in later years


I think Rodgers will get at least a 30 million signing bonus - 6 to 8 year contract - 35 to 40 million guaranteed - why because he has earned it. This is what you have to pay the best player in the NFL just starting the prime years of his career. This contract will not be cheap and it does make the draft much more important in upcoming years.
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JBURGE25


Joined: 25 Jan 2012
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PostPosted: Wed Mar 20, 2013 9:30 am    Post subject: Reply with quote

McThreadski wrote:
blankman0021 wrote:
McThreadski wrote:
Can't we just give him a "second job" at Uncle Mike's All Night Sweater Barn for 20 million per year and then pay him 2 million against the cap and spend the rest on top flight talent to surround him with? Why am I the only guy that thinks this is a dandy idea?


Unless you have the $20M to make it happen I think you're out of luck. Wink


Oh I think we could come up with the money. Use kickstarter and post it all over the web, I bet there would be more than enough cash to go around. I got $500 on it right now.


In no form am I paying for Rodger's salary when we have the cap space to make it happen Laughing 130 million dollars is enough for the tema to work with. They don't need contributions from my part time job
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svp


Joined: 11 Sep 2011
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PostPosted: Wed Mar 20, 2013 11:10 am    Post subject: Reply with quote

We should give him a piece of paper that says he is part owner of the team.
That way he is psycho-logically invested and that is better than money sometimes.
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incognito_man


Joined: 11 Jan 2007
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PostPosted: Wed Mar 20, 2013 11:22 am    Post subject: Reply with quote

The 4 yr, $100million extension is solid.

Comes out to about $20mil/yr over the next 6 then.
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rbens06


Joined: 07 Jan 2008
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PostPosted: Wed Mar 20, 2013 12:41 pm    Post subject: Reply with quote

dijatool wrote:
rbens06 wrote:
Signing bonuses are spread over the life of the contact, so adding 4 years $100 million (mentioned by another poster in a different thread) would spread the $48 million over 6 years (I believe it can be spread over the existing years, but am not 100% on that) would be $8 million a year moving this years and next years cap numbers to about $18 million.

Signing bonuses are only spread over five years. Josh is a good example:

Sitton @ Spotrac

Sitton @ OTC

I've been meaning to figure out where that is in the CBA and haven't gotten to it yet.


I remember seeing this, but could not find anything on it, but it is line with all the contracts that are over 5 years.
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rbens06


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PostPosted: Wed Mar 20, 2013 12:43 pm    Post subject: Reply with quote

mightybk wrote:
If you want to get around the signing bonus proration issue, just guarantee the base salaries in the first 3 years.....He still gets his guaranteed money (just not in one lump sum) and the team doesn't have to worry about the big cap hit in later years


Certainly a good option as long as Rodgers goes for it, which it seems like he would. Plus it works out well for us because we are not going to get rid of him anytime soon, so there is no worries of dead money.
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