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Re: Something I learned about NFL contracts and guarantees

February 12, 2020 06:30AM
Quote
Deadpool
So I was reading about the new CBA negotiating and I learned something I didn't know about the guaranteed money. Apparently back in the day, players were worried that owners wouldn't have the money to pay their guarantees so they worked into the CBA that all guaranteed money must be put into a separate account at the time of signing. I guess it makes sense. And thats why owners with less money (like the Raiders) say they just don't have the money to pay guys like Mack. Its not the salary. Its the fact they need to put whatever they put in guaranteed money into a separate account.

So take Goff's contract for example: Last year he signed a 4 year extension with 57m in guarantees at signing. So not only does Kroenke pay Goff 10.6m last year, but he also has to squirrel away 57m in a separate banking account. He'll have to add another 21m after 3/3 after a roster bonus kicks in guaranteeing him 21m more.

I found that interesting. Maybe its just me. So the next time you hear an owner like Spanos say he just cannot afford to sign so and so, its likely because he doesn't have the funds to store in a separate account.

They're actually working on changing that with the new CBA.

This is listed as one of the things the players union wants:

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.[www.espn.com]

Removal of the "fully funded rule" that players view as an obstacle to negotiating fully guaranteed contracts. The rule states that any fully guaranteed money in a contract must be held in escrow at the time of signing. Players view this as an antiquated rule held over from less robust economic times when there was reason to worry about teams making their payrolls.
SubjectAuthorViewsPosted

  Something I learned about NFL contracts and guarantees

Deadpool507February 12, 2020 06:22AM

  Re: Something I learned about NFL contracts and guarantees

zn189February 12, 2020 06:30AM

  Wow!

RamUK160February 12, 2020 07:52AM

  Re: Wow!

zn130February 12, 2020 08:05AM

  Agree zn, spanos crying poor is laughable

promomasterj90February 12, 2020 08:33AM

  Re: Agree zn, spanos crying poor is laughable

zn80February 12, 2020 08:49AM

  Re: Agree zn, spanos crying poor is laughable

Ohiorams57February 12, 2020 09:01AM

  Which teams can't afford it? Spanos is worth 2.4 billion

promomasterj31February 14, 2020 09:53AM

  Re: Which teams can't afford it? Spanos is worth 2.4 billion

AlbaNY_Ram29February 14, 2020 11:31AM

  exactly it's cash flow not assets

zn38February 14, 2020 12:21PM

  They don't have to have cash in a bank vault

promomasterj25February 14, 2020 01:14PM

  Re: They don't have to have cash in a bank vault

zn27February 14, 2020 02:13PM

  You think Kroenke has 700 million in cash lying around?

promomasterj34February 14, 2020 03:23PM

  Re: You think Kroenke has 700 million in cash lying around?

zn32February 14, 2020 03:44PM

  Re: You think Kroenke has 700 million in cash lying around?

AlbaNY_Ram32February 14, 2020 04:42PM

  Re: Wow!

dzrams63February 12, 2020 09:12AM

  another take on this

zn59February 12, 2020 11:22AM

  Its funny how that works

Deadpool60February 12, 2020 10:28AM

  Re: Its funny how that works

zn47February 12, 2020 08:45PM

  TO fix This Guaranteed Non Guaranteed - League needs Gurley Rule like NBA Bird Rule

Rams_8149February 14, 2020 04:31AM

  That's not what the NBA Bird Rule is

AlbaNY_Ram50February 14, 2020 07:40AM