Brady Restructures Contract...AGAIN

Share this page

PatsFanLisa

PatsFanLisa

No filter
Joined
Oct 9, 2007
Messages
24,542
Reaction score
4,520
Points
113
Location
Sharon
In a deal turned into NFL today, Tom Brady restructured his contract to give NE $24 million more in cash to spend this winter, per sources.

Under the new deal, Brady changed the $24 million in “skill” guarantee to only “injury” guarantee, meaning that Brady now would get the guaranteed money only if he were injured. Brady also now can be released from the Patriots without any liability, but he then would become an unrestricted free agent, free to command the type of guaranteed money he has agreed to surrender. This frees up cash for the Patriots to use on other players. New England needs the cash to help re-sign some of its own free agents such as Darrelle Revis, Devin McCourty, Nate Solder and Shane Vereen, amongst others.
Click to expand...

Per Schefter.
 
This is probably just my own cap ignorance speaking, but how does that free up 24m in cap space? Unless you do actually cut him of course, but I doubt very much thats the plan.
 
It's awesome to see someone who plays the game so well also be unselfish enough to try and help the team better itself by giving up the cash. It probably doesn't hurt that his wife makes more than he does...but it's still not something that is seen often enough in sports. I'll never stop thinking that athletes get paid waaaaayyyy too much money for playing a game.
 
Jaric said:
This is probably just my own cap ignorance speaking, but how does that free up 24m in cap space? Unless you do actually cut him of course, but I doubt very much thats the plan.
Click to expand...

Not at all. But the team has to escrow the fully guaranteed money. So at this point this is more of a cashflow management issue. This restructure obiously gives them added flexibility if they want to make the change before Brady's contract is up. And Brady doesn't risk much as well. His money is still guaranteed for injury and if the Patriots would cut him, there'll always be someone who will pay him the $8M/year the Patriots still owe him under his current contract.
 
German_Patriot said:
Not at all. But the team has to escrow the fully guaranteed money. So at this point this is more of a cashflow management issue. This restructure obiously gives them added flexibility if they want to make the change before Brady's contract is up.
Click to expand...

Ok, so if he's on the roster next season the cap hit is the same (assuming nothing new happens)
 
Jaric said:
That should also protect them should he be traded or retire I believe.
Click to expand...

In case of a trade, no. If they trade him away the new team takes on the salary, guaranteed or not.

If he retires he doesn't get any of that money, unless it's because of injury.
 
tmede212 said:
That's crazy. Either he really does not care about the money and wants a legacy in winning another one or two possible SB's.
Click to expand...

I think he has another income in the family...plus, Kraft could pay him after he retires from the NFL...or a % owner of the Pats? Could be something later on.

Creative financing? :shrug:

Smart move anyway you look at it...
 
Jaric said:
Ok, so if he's on the roster next season the cap hit is the same (assuming nothing new happens)
Click to expand...



He's only scheduled to make 7, 8, and 9 million for the next 3 years, but the cap hits are like 14 each year due to the signing bonus or something. I think this gives them some relief on that end.
 
So, if I'm getting this ...... all that happens is this frees up the $24M escrow money for Kraft so that he's more liquid come time to pay the bonus for Revis ... and others?

Is $ so tight for Kraft that he needs such liquidity?
 
You must log in or register to reply here.
Back
Top