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One of the hardest things for the average fan to comprehend is how NFL contracts work and how they apply to a team’s salary cap. There are many complicated elements, rules, and exceptions that can be hard to sort out. In this series, my goal is to help you better understand how this whole system works, plus what it means to the Green Bay Packers’ current salary cap and contract concerns.

Before reading, make sure to check out the previous article(s) in the series:

• Part 1: An Introduction to the Basics
• Part 2: A.J. Hawk and Contract Restructuring
• Part 3: Jermichael Finley and the Two-Year Deal
• Part 4: Clay Matthews and Incentives
• Part 5: B.J. Raji and the Escalator

Our sixth and final article focuses on Aaron Rodgers and the “big contract.” Ted Thompson has been preparing for this moment for a long time now, and we’re going to attempt to scratch through the surface of this major negotiation.

Across this series, we’ve talked about a lot of things concerning NFL player contracts and the salary cap. Now is when the rubber meets the road, though, and we try to put this knowledge to use. I’m also going to introduce a few new things that will keep it interesting, such as general cap economics and the concept of “option bonuses.” Fair warning: there is going to be a lot to digest here.  Read more... (1915 words + 5 images, estimated 7:40 mins reading time)

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One of the hardest things for the average fan to comprehend is how NFL contracts work and how they apply to a team’s salary cap. There are many complicated elements, rules, and exceptions that can be hard to sort out. In this series, my goal is to help you better understand how this whole system works, plus what it means to the Green Bay Packers’ current salary cap and contract concerns.

Before reading, make sure to check out the previous article(s) in the series:

• Part 1: An Introduction to the Basics
• Part 2: A.J. Hawk and Contract Restructuring
• Part 3: Jermichael Finley and the Two-Year Deal
• Part 4: Clay Matthews and Incentives

Our fifth article focuses on B.J. Raji and the use of “escalators” in contract negotiations. Yesterday we detailed how “incentives” work, and there are some similarities between those and escalators. However, there is a major difference that gives teams a lot of financial power when it comes to future roster decisions.

As should be common knowledge, B.J. Raji was drafted in the same year as Clay Matthews (2009), though Raji was a higher first-round pick. If you compare his contract to Matthews’ from yesterday, you’ll notice some obvious differences outside of the generally larger dollar amounts. The difference I want to note today is how Raji’s contract is boosted with escalators, while Matthews is boosted with incentives. Take a look:

   Read more... (741 words + 2 images, estimated 2:58 mins reading time)

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One of the hardest things for the average fan to comprehend is how NFL contracts work and how they apply to a team’s salary cap. There are many complicated elements, rules, and exceptions that can be hard to sort out. In this series, my goal is to help you better understand how this whole system works, plus what it means to the Green Bay Packers’ current salary cap and contract concerns.

Before reading, make sure to check out the previous article(s) in the series:

• Part 1: An Introduction to the Basics
• Part 2: A.J. Hawk and Contract Restructuring
• Part 3: Jermichael Finley and the Two-Year Deal

Our fourth article focuses on incentives, and although we’re going to use Clay Matthews’ contract as an example, the discussion will be oriented in a more general sense. This is something most people should have a simple understanding of, but there are some details on how these incentives are paid out and applied to the salary cap that might be new knowledge.

When Clay Matthews was drafted by the Packers in 2009, the new CBA and its “rookie salary scale” were not in existence. This allowed agents to negotiate larger contracts, especially for the top draft picks. In order to find some middle ground, teams would work in “incentive” pay to ensure they were getting their money’s worth. Even the top picks are a risk, so teams want to avoid being financially handcuffed to “busts.”  Read more... (836 words + 5 images, estimated 3:21 mins reading time)

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One of the hardest things for the average fan to comprehend is how NFL contracts work and how they apply to a team’s salary cap. There are many complicated elements, rules, and exceptions that can be hard to sort out. In this series, my goal is to help you better understand how this whole system works, plus what it means to the Green Bay Packers’ current salary cap and contract concerns.

Before reading, make sure to check out the previous article(s) in the series:

• Part 1: An Introduction to the Basics
• Part 2: A.J. Hawk and Contract Restructuring

Our third article focuses on Jermichael Finley’s current contract and what its purpose served last offseason when each party agreed to it. Namely, why was it only a two-year deal, and why were the monetary details set as they were? We’ll use this as an example of how teams and players approach contracts in general to give both sides what they want.

Last offseason, Jermichael Finley was set to become a free agent and could have commanded a lot of interest from outside teams. He was about a month away from turning 25 when the Packers struck a deal to keep him under contract for another two years. They weren’t ready to let their potential playmaker slip away, and they certainly didn’t want to enter into a bidding war with other teams.  Read more... (930 words + 2 images, estimated 3:43 mins reading time)

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One of the hardest things for the average fan to comprehend is how NFL contracts work and how they apply to a team’s salary cap. There are many complicated elements, rules, and exceptions that can be hard to sort out. In this series, my goal is to help you better understand how this whole system works, plus what it means to the Green Bay Packers’ current salary cap and contract concerns.

Before reading, make sure to check out the previous article(s) in the series:

• Part 1: An Introduction to the Basics

Our second article focuses on A.J. Hawk and his current contract restructuring. Make no bones about it, this is a pay cut for Hawk; however, it’s not like he’s getting peanuts for the deal. The point of most restructured contracts is to take an original deal and adjust it for cap reasons. A lot of times, teams are looking to push money into the future for present cap relief, though it’s not unheard of to take advantage of current cap room and relieve some of the burden in later years.

We’re going to start by taking a look at Hawk’s original contract. If you’ll remember, the Packers cut Hawk in 2011 to avoid a $10 million base salary, only to turn around and offer him a new five-year contract. Take a look:

   Read more... (735 words + 3 images, estimated 2:56 mins reading time)

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One of the hardest things for the average fan to comprehend is how NFL contracts work and how they apply to a team’s salary cap. There are many complicated elements, rules, and exceptions that can be hard to sort out. In this series, my goal is to help you better understand how this whole system works, plus what it means to the Green Bay Packers’ current salary cap and contract concerns.

Before I begin, I’m going to offer you a short list of resources that I used in my own personal education of this topic. These have really helped me piece everything together, and I highly suggest checking them out. It takes some time to digest, but it will be worth it in the end:

• Ask the Commish.com – NFL Salary Cap FAQ
• OverTheCap.com – A Guide to the NFL Salary Cap
• Packers.com – “Pass the test and you’re a cap master”
• spotract.com – NFL Player Contracts, Salaries, and Transactions

So where do we begin?

The idea of a Salary Cap is essentially a two-fold mechanism: (1) even the playing field of NFL teams to create parity (competition) within the league, and (2) prevent the escalation of player salaries in the era of free agency. In 2013, each team has a salary cap of $123 million, which was determined using a complicated calculation based on the “All Revenue” stream for the league. The salary “floor” for 2013 is 89% of the cap, meaning each team must at least use up roughly $109.5 million of the allotted $123 million.  Read more... (1114 words + 2 images, estimated 4:27 mins reading time)

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Packers DL Johnny Jolly

According to Tom Silverstein of the Milwaukee Journal Sentinel, the Packers have made a deal with the recently re-instated Johnny Jolly to reduce his salary from $2.5 million to $715,000 for the 2013 season.

Jolly signed a 2.5M first round restricted free agent tender in 2010, before getting arrested again and subsequently being suspended by the NFL.  Jolly had been released from jail in May after serving six months of a six year sentence, but remained suspended by the NFL until just a few weeks ago.

Despite Jolly’s repeated missteps, the Packers organization have shown considerable compassion for Jolly, believing he is not a bad guy, but more a victim of choosing friends and situations poorly.  Many teams would have cut him by now, but not the Packers.

The Packers are certainly hoping their faith in Jolly will be rewarded, especially with the possibility of Jerel Worthy not being ready for the start of next season. Jolly has played well for the Packers in the past, knows their system, and is a much cheaper option than bringing in a free agent like Chris Canty.

Silverstein points out that the Packers could still choose to release Jolly down the road, and it’s not known if the Packers have had an opportunity to work him out to see what kind of shape he’s in.

As it stands, the Packers save $1.8 million on this year’s salary cap and will only owe Jolly 383,000 if he ends up on injured reserve. That’s a win-win for Ted Thompson.  Read more... (310 words + 3 images, estimated 1:14 mins reading time)

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