ChiefsPlanet - View Single Post - Football Tom Brady restructures deal; Pats get $24 million

Chiefnj2 · 12-30-2014, 08:31 AM

The media absolutely loves lapping up New England PR. What a joke.

From SB Nation:

Here's what's really going on. Tom Brady will be paid $1 Million more in base salary per year for the next three years. That INCREASES the Patriots' cap spending by $1 Million per year, and DECREASES the Patriots' cap room by a corresponding $1 Million per year. Not only did this restructure provide zero extra cap space, it cost the Patriots $1 Million per year in cap space starting in 2015.

In exchange the Patriots got the removal of the skill guarantee on Brady's base salary over the next three years. Because that $24 Million was previously fully guaranteed, it was required by NFL rules to be deposited with the NFL offices as surety for the fully guaranteed payments. The removal of the skill guarantee resulted in the release of that $24 Million from the NFL fund into the Patriots' general accounts. In theory that gives the Patriots an extra $24 Million in cash to write bonus checks in the new league year. The key words here are in theory. You see, the extra $24 Million is only significant as a cash flow issue, in terms of the Patriots being able to afford to pay free agents bonus money for which they may not otherwise have the cash on hand to write the necessary checks. It doesn't allow them a single extra dollar of cap space; it just means they have an extra $24 Million in their bank account.

Now, this extra $24 million in the Patriots' account is not found money; it will eventually be paid to Tom Brady as base salary over the next three years. It is in effect a short term loan from Brady to the Patriots. The only possible benefit to the Patriots would be if they were literally unable to come up with that $24 Million in cash to write checks without borrowing the money from Brady. Does anyone seriously believe the Patriots are so strapped for cash that the $24 Million in cash allows them to write bonus checks that would otherwise bounce? If that is the case then the Patriots are on the verge of insolvency. But I do not seriously believe that is a possibility, and neither should you. Robert Kraft is a billionaire owner of one of the most successful franchises in all of sports. The likelihood that he has no other way to raise an extra $24 Million in short term cash is virtually zero.

12-30-2014, 08:31 AM	#64
Chiefnj2 In Search of a Life Join Date: Mar 2007 Casino cash: $7813688	The media absolutely loves lapping up New England PR. What a joke. From SB Nation: Here's what's really going on. Tom Brady will be paid $1 Million more in base salary per year for the next three years. That INCREASES the Patriots' cap spending by $1 Million per year, and DECREASES the Patriots' cap room by a corresponding $1 Million per year. Not only did this restructure provide zero extra cap space, it cost the Patriots $1 Million per year in cap space starting in 2015. In exchange the Patriots got the removal of the skill guarantee on Brady's base salary over the next three years. Because that $24 Million was previously fully guaranteed, it was required by NFL rules to be deposited with the NFL offices as surety for the fully guaranteed payments. The removal of the skill guarantee resulted in the release of that $24 Million from the NFL fund into the Patriots' general accounts. In theory that gives the Patriots an extra $24 Million in cash to write bonus checks in the new league year. The key words here are in theory. You see, the extra $24 Million is only significant as a cash flow issue, in terms of the Patriots being able to afford to pay free agents bonus money for which they may not otherwise have the cash on hand to write the necessary checks. It doesn't allow them a single extra dollar of cap space; it just means they have an extra $24 Million in their bank account. Now, this extra $24 million in the Patriots' account is not found money; it will eventually be paid to Tom Brady as base salary over the next three years. It is in effect a short term loan from Brady to the Patriots. The only possible benefit to the Patriots would be if they were literally unable to come up with that $24 Million in cash to write checks without borrowing the money from Brady. Does anyone seriously believe the Patriots are so strapped for cash that the $24 Million in cash allows them to write bonus checks that would otherwise bounce? If that is the case then the Patriots are on the verge of insolvency. But I do not seriously believe that is a possibility, and neither should you. Robert Kraft is a billionaire owner of one of the most successful franchises in all of sports. The likelihood that he has no other way to raise an extra $24 Million in short term cash is virtually zero. __________________ Mismanaging the clock.
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