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This is from Son Dee of the RRF board
This really is an excellent piece that covers all the bases. The author takes a logical approach with real world examples and proposes a rational solution. Even answers some of my questions about “Likely to Be Earned” vs “Not Likely to Be Earned” incentives. It comes via turfshowtimes.com
2015 NFL Salary Cap: Renegotiating Sam Bradford’s Contract
By Frank “Dubs” Dobozy
There’s a lot of stuff to digest in the article so I’ll just post a few key nuggets:Leverage
Many assume the Rams have all the leverage in any contract renegotiation with Sam Bradford. In reality, the leverage scales are fairly evenly balanced, with the Rams having the slight edge.
Bradford and his agent are aware of the dearth of quality QB alternatives/options in both the Free Agent/trade market and the upcoming draft. The demand for his services would be significant on the open market, as many teams are looking for solutions to their own QB problems. Bradford is the only QB on the Rams’ roster at this point in the offseason. Bradford (if healthy) likely gives the Rams the best chance to win and produce a successful season in 2015.
The Rams in turn know there isn’t a team in the NFL willing to pay Bradford $12.985 million in base salary for 2015 (due to his injury history and middle-tier performance level). Bradford’s base salary will likely be substantially reduced in 2015, no matter which team he ends up playing for. Bradford’s base salary for 2015 is not guaranteed. It’s unlikely another team would offer much in the way of guarantees, for the reasons already noted.
The Rams also possess a margin of control over Bradford, for the simple reason he’s under contract with the team until the end of the 2015 season. The timetable for any renegotiation, release, or trade is strictly at the Rams’ discretion. The Rams could make it very difficult for Bradford to sign a player-friendly contract with another team, if for no other reason than timing (example – releasing him less than a week before the regular season started, as opposed to the opening of Free Agency in March).
The Rams have already budgeted for Bradford’s return at the full $12.985 million base salary figure. Salary cap constraints will not be a critical factor in negotiations.
And his comments after his analysis on the new contract he proposes:
Contract Terms And Observations
Under the terms of the new contract, Bradford’s base salary is reduced by $5.985 million (from $12.985 million to $7 million). The $5.985 million pay cut represents a 46% reduction in Bradford’s base salary for 2015. The entire $5.985 million reduction in base salary can be earned back by Bradford, through an extensive incentive package included in the new contract.
The Rams immediately gain $5.985 million in salary cap relief from the reduction in Bradford’s base salary.
The incentives in the new contract are categorized as NLTBE (Not Likely To Be Earned). The CBA categorizes them in this manner because Bradford did not play in 2014, nor did the Rams make the playoffs. The distinction between NLTBE incentives and LTBE (Likely To Be Earned) incentives is an important one. NLTBE incentives, if earned in 2015, can be counted against a teams salary cap in either 2015 or 2016. They afford a team flexibility in accounting for salary cap charges incurred due to earned incentives.
The incentives are (for the most part) self-explanatory. The “performance bonus” can be comprised of many statistical measures, including (but not limited to) touchdown passes, interceptions, passer rating, wins, and completion percentage. The various incentives (as a whole) take into account Bradford’s health throughout the season, his individual performance level, and overall team performance.
If Bradford fails to hit on any of the incentives, the worst the Rams could suffer financially is a $7 million salary cap charge for his base salary. If Bradford earns ALL of the incentives, it would mean he (and the Rams) had a great season. Bradford would earn the full $12.985 million, a bargain by any measure.
The prorated bonus amount from Bradford’s old contract ($3.595 million) cannot be altered or reduced, and remains a salary cap charge for the Rams irrespective of Bradford’s status with the team. Bradford’s base salary is the only amount allowed to be altered in a renegotiation. The prorated bonus constitutes dead money for the Rams if he’s released and plays for another team in 2015.
Bradford has no guaranteed money remaining in his original contract. As an inducement in negotiations, $3 million of Bradford’s 2015 base salary becomes fully guaranteed if he’s the Week 1 starter in September. Because there’s no guaranteed money triggered before the first week of September, the Rams could release Bradford at any time between the signing date of the new contract and the beginning of the season without incurring a $7 million charge against their salary cap.
Ideally, the renegotiated contract should be agreed to before the opening of the new league year on March 10. If completed by that date, it allows the Rams to gain additional salary cap space to re-sign their own Free Agents or sign Free Agents from other teams, plus gives the team a measure of cost certainty for budgeting purposes.
The possible extension for 2016 is discussed above. It in no way affects the renegotiated numbers for 2015.
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