fwiw, fyi...on how extensions are calculated

This is an exchange on twitter between a very good CBS Sports contracts/cap expert (Corry) and someone else. Corry is a former agent before becoming the best writer in sports media on NFL contracts.

They're discussing Aaron Rodgers new deal.

Quote

Joel Corry@corryjoel
Over the last 12 months, the top of the QB market has gone from $27M per year (Matthew Stafford) to $33.5M (Aaron Rodgers). That's a 24.1% increase.

Mike Melchione@Mike_Melchione
It’s really 6 years at 29 per, a new 6 year deal at 6/174

Joel Corry@corryjoel
You are misrepresenting the deal. Industry professionals (most team negotiatiors & agents) view extensions through new money. It's a 4-year extension averaging $33.5M per year.

I negotiated numerous deals with years remaining as an agent. In everyone of those situations, the negotiations centered around the new money & the number of new contract years.

That exchange applies to guys like Brandin Cooks and will apply to Donald.

If a guy already has a contract, the extension is new money and starts after the old contract. So Cooks isn't signed for 6 years for 86.6 M. He is in his final year of this first contract and gets 5.4 M for 2018. Then in 2019 the new contract starts, and it is 5 years for 81 M. So when we talk about what Cooks signed for, it's 16.2 M a year starting in 2019.

It will be the same with Donald. Odds are, unless they do something very different, 2018 counts as the last year of his old contract. The new contract will start in 2019. To estimate its value you take the new contract amount (for Cooks, 81 M) and divide by the new contract years (for Cooks, 5 years).

I mention this because I have seen a little confusion about this on different boards. Some people were saying for Cooks it was 6 years, 86.6 M, which is not the way it works.



















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Edited 1 time(s). Last edit at 08/29/2018 03:38PM by zn.