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Did rapper-turned-pop singer Jay Z screw over Geno Smith on his contract?


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http://profootballtalk.nbcsports.com/2013/07/22/geno-smith-deal-ties-big-money-to-workout-bonuses/

 

 

 

 

If any NFL agents are thinking about writing rap lyrics bashing Jay-Z, they now have a little ammunition.

Per a source with knowledge of the details of the deal, Jets quarterback Geno Smith’s contract ties nearly $700,000 to Smith participating in the team’s offseason voluntary workout program.

Specifically, $276,328 of Smith’s $861,328 compensation in 2015 depends on Smith showing up for the otherwise voluntary offseason drills.  In 2016, $414,491 of Smith’s $1.08 million compensation in 2016 is tied to working out in the offseason.

Typically, players must participate in 80 percent of the offseason workouts to earn the bonus.  For Smith, this puts extra pressure on him to be able and willing to show up and work out in the final two years of his deal.  If he fails to meet the minimums, he’ll potentially lose hundreds of thousands of dollars.

It’s not unprecedented for the Jets to use workout bonuses in rookie deals, but the amounts have been much lower.  Last year, for example, second-round receiverStephen Hill had $50,000 tied to workout participation in 2013, and $100,000 each in 2014 and 2015.

Still, some will look at the decision to tie nearly $700,000 of compensation to Smith’s decision to show up and work out as an indication that the Jets are concerned that, without a clear financial incentive to put in the work, Smith won’t.  Some also may wonder whether the Jets noticed something during the 2013 offseason program that gave them concerns about Smith’s commitment to the otherwise voluntary sessions.

The clause also sets up inexperienced agent Kim Miale and her boss, Jay-Z, for criticism from the agent community, which tends to criticize anyone and anything if it means helping them expand their portfolio of clients.  In this specific case, given the details of the rookie deals signed by the players taken before and after Smith, the criticism may be justified.

 

________________

 

 

Ummm so basically Jay Z concedes to Geno possibly being a lazy bastard?  That's what I gather from this article.

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Specifically, $276,328 of Smith’s $861,328 compensation in 2015 depends on Smith showing up for the otherwise voluntary offseason drills.  In 2016, $414,491 of Smith’s $1.08 million compensation in 2016 is tied to working out in the offseason.

Typically, players must participate in 80 percent of the offseason workouts to earn the bonus.  For Smith, this puts extra pressure on him to be able and willing to show up and work out in the final two years of his deal.  If he fails to meet the minimums, he’ll potentially lose hundreds of thousands of dollars.

 

this is a great contract for the Jets...either don't be lazy like that loser Manzeil is or we won't pay you :D

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Still, some will look at the decision to tie nearly $700,000 of compensation to Smith’s decision to show up and work out as an indication that the Jets are concerned that, without a clear financial incentive to put in the work, Smith won’t.  Some also may wonder whether the Jets noticed something during the 2013 offseason program that gave them concerns about Smith’s commitment to the otherwise voluntary sessions.

 

#lolPFT

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More importantly, if Smith turns out to be a bust, the Jets can cut him in years 3 or 4, and won't have to pay the work out bonus'.

 

Doesn't seem his real guaranteed money is much more then a non QB would get.  That's what they were pulling for

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The way I see it, the Jets finally have a GM that negotiates contracts that are favorable for the organization he works for.

Basically, if Geno turns out to be good, the Jets get him for a few years on the cheap. If he doesn't, the Jets can easily let him go, again because they got him on the cheap.

I don't see what's bad about this.

Edited by sourceworx
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The way I see it, the Jets finally have a GM that negotiates contracts that are favorable for the organization he works for.

Basically, if Geno turns out to be good, the Jets get him for a few years on the cheap. If he doesn't, the Jets can easily let him go, again because they got him on the cheap.

I don't see what's bad about this.

 

 

It's not, but Mike Florio wants you to think its bad because he has invested a lot of time and energy into the "Geno Smith is a bad guy" theory and he is desperate to be proven right. 

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The way I see it, the Jets finally have a GM that negotiates contracts that are favorable for the organization he works for.

Basically, if Geno turns out to be good, the Jets get him for a few years on the cheap. If he doesn't, the Jets can easily let him go, again because they got him on the cheap.

I don't see what's bad about this.

 

Hopefully, it's not, but if Smith proves to be a very good QB, it's possible he could wind up resenting the Jets for forcing him to attend the voluntary workouts.

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Seems to me Geno is now getting money for showing up to a voluntary no-contact (ok they're all no-contact for QBs) camp for a week.  His actual game checks will be less since he will have already gotten paid for going to a voluntary camp for a week that - be realistic - he was going to go to anyway.

 

In a sense, depending on the language of the contract, Geno has more leverage because he can take the bonus money for attending voluntary camp (with its low injury risk) and then hold out after the check clears.  He'll get 40% of his money for the year without playing.  Yeah it would be better (for Smith) if he got the same money as roster bonus on March 1st, but it really isn't that much different.  T

 

It only hurts Smith if he gets into some non-football accident or trouble and is therefore unable (or if he's unwilling) to work out with the team.  Odds of that are pretty small and, again, it's just working out & probably some meetings/film study so he was going to go anyway.  The only players who don't go are ones who make SO much that the $100-300K for working out is so low in proportion to a $5-10M yearly compensation that they just don't care about the money and don't feel like going, or those who got injured the prior season and prefer to (and/or have the money to) rehab elsewhere.

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The way I see it, the Jets finally have a GM that negotiates contracts that are favorable for the organization he works for.

Basically, if Geno turns out to be good, the Jets get him for a few years on the cheap. If he doesn't, the Jets can easily let him go, again because they got him on the cheap.

I don't see what's bad about this.

Yep. Idzik is a baller. Jet fans are used to our team getting bent over and banged during contract negotiations. It will take time to adjust but eventually we will come around.

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Hopefully, it's not, but if Smith proves to be a very good QB, it's possible he could wind up resenting the Jets for forcing him to attend the voluntary workouts.

If Geno turns out to be a very good QB the Jets will be to busy pinching themselves to worry about were Geno works out.

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It's not, but Mike Florio wants you to think its bad because he has invested a lot of time and energy into the "Geno Smith is a bad guy" theory and he is desperate to be proven right. 

 

Isn't Florio a WVU guy?  Usually reporters have a bit of homerism when it comes to players who came from the same school they attended.  

 

I guess his hatred of the Jets outweighs his love of WVU.

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If Geno turns out to be a very good QB the Jets will be to busy pinching themselves to worry about were Geno works out.

 

Not for nothing, if Geno turns out to be a very good QB, Geno will be attending 100% of the "voluntary" offseason workouts as that's one of those things very good QBs do. 

 

A good writer would explained that maybe because Geno intends to attend all of the offseason workouts, this is a no-brainer clause for him to sign that makes him easy money. Alas, Mike Florio is not a good writer. 

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Im pretty sure the bonuses were explained to Geno.

Its not as if he was unaware of all the stips. This is stupid...maybe there was no way Geno wouldnt attend ota's and was fine with the deal.

He's seemed pretty dedicated to working hard thus far. Florio is attempting to gain brownie points with other agents for this...pretty obvious.

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Smith's camp tried to get extra guaranteed money then is usually given to a 2nd round pick because he is a QB.  There is some precedent to this in the 2011 contracts given to Kaepernick, and Andy Dalton.  They wanted guaranteed money in years 3 and 4.

 

Smith has some potential to be a bust, and the Jets wouldn't guarantee it.   Because of the QB competition this year Smith had 0 leverage in any type of a hold out.  Smith's camp accepted the workout "guaranteed money"  to save face.  It's not guaranteed at all.

 

If Smith is horrible (doubt he'll be horrible)  and the Jets cut him after year 2 he gets no work out bonus in year 3, hence no "guaranteed money". 

 

Not a major victory, or defeat for either side.  Smith had very little  leverage.  The author of the original article was just trying to make something out of nothing.  Mostly bashing Jay-Z

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Smith's camp tried to get extra guaranteed money then is usually given to a 2nd round pick because he is a QB.  There is some precedent to this in the 2011 contracts given to Kaepernick, and Andy Dalton.  They wanted guaranteed money in years 3 and 4.

 

Smith has some potential to be a bust, and the Jets wouldn't guarantee it.   Because of the QB competition this year Smith had 0 leverage in any type of a hold out.  Smith's camp accepted the workout "guaranteed money"  to save face.  It's not guaranteed at all.

 

If Smith is horrible (doubt he'll be horrible)  and the Jets cut him after year 2 he gets no work out bonus in year 3, hence no "guaranteed money". 

 

Not a major victory, or defeat for either side.  Smith had very little  leverage.  The author of the original article was just trying to make something out of nothing.  Mostly bashing Jay-Z

 

I'd have a hard time believing the Jets would cut Smith outright when he's on such a cheap contract (unless he turns into a major cancer/distraction).  At those numbers it's not even outrageous to keep a guy with his arm/potential around as a 3rd stringer (even with the $400K workout bonus you're talking about $1M in "new money").

 

And as a couple of us have mentioned, the only players who skip these workouts are veterans who are holding out or veterans who make (or have made) so much money already that they won't be "inconvenienced" to work out with their team for several days in the spring in exchange for hundreds of thousands of dollars.

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Good article from Jason's site

 

 

 

 

 

 

 

 

 

 

Why Does Geno Smith’s Contract Contain Such Large Bonuses?

 

 

 

Contracts, Salary cap

 

 

by jason

 

 

 

 

 

According to ProFootballTalk the Jets have added large workout bonuses into QB Geno Smith’s contract. I speculated yesterday that Smith’s contract would contain at least $100,000 in workout or offseason bonuses but was a bit surprised at the amount that these contain, $690,819. Some speculate that it’s a sign the Jets could be worried about Smith’s offseason dedication while others say that it was a masterful negotiation by Jay Z’s Roc Nation. Which is it?

 

 

In terms of offseason money this is the largest amount for a non-first rounder over the final two years of his contract. The prior largest figure was Janoris Jenkins, whose deal contained $684,163 in season roster bonuses, an amount that was chosen because of Jenkins off the field problems. That doesn’t mean it is uncommon to have bonus money, I believe 18 of 32 second rounders had some sort of bonus money last season, just uncommon for it to be of this size. That could indicate some issues with Smith that the Jets are trying to ensure don’t pop up.

 

 

While the Jets in the past have been big workout bonus believers, their new GM, John Idzik, has come from a system where the offseason money is not a priority. Considering the Jets let go of the teams lead contract negotiator it is highly unlikely that they would be looking at workout bonuses as a main component of contracts. Again this paints a unique picture for the GM making this a somewhat unique situation.

 

 

On the other side of the coin offseason bonus money is always in the players favor as it forces a teams hand to release a player early or pay him. It’s almost like having a “no-offset guarantee” clause in your contract if you make it through workouts or a roster bonus date.  In terms of cash flow it is beneficial to get more money early rather than needing to wait for the season to begin.

 

 

Again its not uncommon, specifically for the QB. Colin Kaepernick had $200,000 in workout bonuses with the 49ers. Andy Dalton received $200,000 in reporting bonuses from the Bengals. Brock Osweiler has $349,245 in roster bonus money coming his way from the Broncos. So the precedent for the bonus money is there and in all of these cases this was money pushed for by the agents to improve the cash flows to a very highly valued asset.  Osweiler’s situation is probably the most unique because of the presence of Peyton Manning which is why he pushed for high roster bonuses rather than the later bonuses the others received.

 

 

So what was the purpose of the high bonus?  First I would say it depends on the guarantee structure of the contract. As of typing this I do not know  if Smith’s 2015 base salary was guaranteed. I would assume that it was based on former treatment of QB salaries. Dalton received a guarantee on his 3rd year salary. Kaepernick had close to $600,000 of his third year salary guaranteed. Osweiler, selected much later in the round, received his first two years guaranteed. All of their contracts, more or less, represented a premium in guarantees over the slot. That is the QB premium I talk about that exists in the draft.

 

 

If Smith did receive a full $585,000 guarantee on his P5 in 2015 that is a big win for the player. The presence of the workout bonus in this case essentially guarantees him  a full guarantee on his third year. That is better than Kaepernick and puts him in the same category as Dalton, both players drafted a few slots higher. That’s a big win.  If there is no year 3 guarantee then Smith lost big and the workout bonus was just a compromise to cover for the guarantee. That will be a big blow for Jay Z’s first client in the NFL and one that will be used against him.

 

 

The Jets tied all his extra year 3 and year 4 compensation to workouts, normally meaning something like 70-80% attendance. As I said before the number is a surprise especially given Idzik’s track record.  It may not have anything to do with Smith the player, as is being speculated, but more Jay Z the agent. The Jets have to assume that Smith is going to be their QB of the future. The NFL permits contracts to be renegotiated after the 3rd season in the NFL. This agency is a complete unknown around the NFL and there could be a feeling that Smith is going to be advised to holdout in the future to make it known that he wants a new contract.

 

 

The workout bonus gives the Jets protection for that in year 4. A roster or reporting bonus can allow Smith to collect without being present in the offseason, staging a bit of a mini-holdout as we have seen others do. The large workout bonus makes it almost mandatory for Smith to participate even if unhappy with his contract status. About 40% of his 2016 salary is connected to workouts now. That should at least help, a little bit, the potential of an agency turning the offseason into a big story about contracts. The Jets have been down this road multiple times with Darrelle Revis.  Idzik himself even saw a little bit of this last year when someone starting floating a story about how Russell Willson was underpaid and was going to demand his contract redone, even though the CBA didn’t allow it. It was likely a bogus story from the start, but it takes the focus off football.

 

 

So when the details of the contract are official we can make a better determination of the whys of the contract. If that guarantee is missing from 2015 then it was a win for the Jets side and they have likely tried to protect themselves from any outside forces keeping Smith from attending the offseason programs. If the guarantee exists then Smith’s team did a really good job and maybe the Jets felt that this was the best protection they could get in the future. We should know the answer later today.

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..

 

 

Jets’ Geno Smith does not receive “QB premium” in rookie contract

 

By Brian McIntyre | Shutdown Corner – 44 minutes ago..

 

 

Geno Smith signed a four-year deal on Monday (USA Today Sports Images)

 

New York Jets second-round quarterback Geno Smith signed his four-year, $5.019 million rookie contract on Monday. With Smith changing agents after the draft — firing the experienced Jeff Nalley to join the relatively inexperienced Kim Miale at Roc Nation Sports, which is owned by Jay-Z — his rookie contract is generating more interest than those signed by the other second-round picks in this year's draft.

 

 

According to a source with knowledge of Smith's contract, here's how it breaks down:

 

 

Signing bonus: $2,030,620

 

 

Base salaries:

 

 

2013: $405,000 - guaranteed for skill/injury/cap

 

2014: $633,164 - guaranteed for skill/injury/cap

 

2015: $585,000

 

2016: $675,000

 

 

Other compensation

 

 

2015: $276,328 workout bonus

 

2016: $414,491 workout bonus

 

 

Smith's signing bonus and fully guaranteed base salaries in each of the first two seasons are perfectly in line with his draft slot. In total, Smith's contract is worth $5,019,603 with $3,068,784 in guaranteed money. Both figures are standard, but it is somewhat interesting that Smith, who believed he should have been selected in Round 1 of the draft, did not receive a "quarterback premium" contract, which are deals where a quarterback obtains more guaranteed money and/or a larger total value contract from the team than a player at another position would have received in the same draft slot.

 

 

 

 

In 2011, quarterbacks Andy Dalton and Colin Kaepernick, the third and fourth picks in the second round, signed deals with slotted total values and signing bonuses. However, both quarterbacks received more guaranteed money than the first two picks of Round 2 as the Cincinnati Bengals and San Francisco 49ers fully guaranteed substantial portions of Dalton and Kaepernick's Year 3 base salaries.

 

 

Last year, Denver Broncos second-round quarterback Brock Osweiler received $1,937,433 in guaranteed money even though his draft slot called for guaranteed money in the $1.4 million range. Seattle Seahawks quarterback Russell Wilson did not receive additional guaranteed money in his rookie contract, but his outer year base salaries all exceed the league minimum and he has a base salary escalator available in 2014, so the total value of his contract came in higher than the seven non-quarterbacks chosen ahead of him in the third round of the 2012 draft. Philadelphia Eagles quarterback Nick Foles, also a 2012 third-rounder, has a contract with a total value higher than the nine non-quarterbacks selected ahead of him in last year's draft.

 

 

"Quarterback premium" deals have occurred in 2013.

 

 

Tampa Bay Buccaneers third-round quarterback Mike Glennon received $637,500 in guaranteed money, which is what his slot called for. However, the total value of Glennon's deal is $3.104 million, which is higher than the nine non-quarterbacks drafted ahead of him. Eagles fourth-round quarterback Matt Barkley has an opportunity to earn nearly $60,000 more than the linebacker (Zaviar Gooden of the Tennessee Titans) chosen ahead of him in April through higher base salaries and workout bonuses in the outer years of his contract.

 

 

Smith's deal is not bad, but this is the only contract he is assured of signing and a little more fully guaranteed money would have made this contract look a lot better.

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Not for nothing, if Geno turns out to be a very good QB, Geno will be attending 100% of the "voluntary" offseason workouts as that's one of those things very good QBs do. 

 

A good writer would explained that maybe because Geno intends to attend all of the offseason workouts, this is a no-brainer clause for him to sign that makes him easy money. Alas, Mike Florio is not a good writer. 

This. I do see both sides of the coin a little clearer, how it's more almost guaranteed for a non 1st than usual, but I also like how it's tied to the kid showing up because his holdout could cost him dearly.

 

What is most important is that you have a young, confident player putting a lot of his money on the line, basically proving he is going to come in and work hard.

 

Happy days.

 

 

.....Russell who?

Edited by BleedGreen314
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http://profootballtalk.nbcsports.com/2013/07/22/geno-smith-deal-ties-big-money-to-workout-bonuses/

 

 

 

 

If any NFL agents are thinking about writing rap lyrics bashing Jay-Z, they now have a little ammunition.

Per a source with knowledge of the details of the deal, Jets quarterback Geno Smith’s contract ties nearly $700,000 to Smith participating in the team’s offseason voluntary workout program.

Specifically, $276,328 of Smith’s $861,328 compensation in 2015 depends on Smith showing up for the otherwise voluntary offseason drills.  In 2016, $414,491 of Smith’s $1.08 million compensation in 2016 is tied to working out in the offseason.

Typically, players must participate in 80 percent of the offseason workouts to earn the bonus.  For Smith, this puts extra pressure on him to be able and willing to show up and work out in the final two years of his deal.  If he fails to meet the minimums, he’ll potentially lose hundreds of thousands of dollars.

It’s not unprecedented for the Jets to use workout bonuses in rookie deals, but the amounts have been much lower.  Last year, for example, second-round receiverStephen Hill had $50,000 tied to workout participation in 2013, and $100,000 each in 2014 and 2015.

Still, some will look at the decision to tie nearly $700,000 of compensation to Smith’s decision to show up and work out as an indication that the Jets are concerned that, without a clear financial incentive to put in the work, Smith won’t.  Some also may wonder whether the Jets noticed something during the 2013 offseason program that gave them concerns about Smith’s commitment to the otherwise voluntary sessions.

The clause also sets up inexperienced agent Kim Miale and her boss, Jay-Z, for criticism from the agent community, which tends to criticize anyone and anything if it means helping them expand their portfolio of clients.  In this specific case, given the details of the rookie deals signed by the players taken before and after Smith, the criticism may be justified.

 

________________

 

 

Ummm so basically Jay Z concedes to Geno possibly being a lazy bastard?  That's what I gather from this article.

This thread lacks  moral scruples

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It's not, but Mike Florio wants you to think its bad because he has invested a lot of time and energy into the "Geno Smith is a bad guy" theory and he is desperate to be proven right. 

Florio looked at RGIII's rasta hairdo and decided he was an awful human being, when in fact he is a hard worker, a smart kid and an Army brat. This is the level of analysis you get at PFT.   

 

Sounds to me like we at least have a GM who knows what he's doing. 

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The base salary and guaranteed money is in line with his draft slot, but QB's usually get more than other positions for that draft slot.  Seems to me they substituted a bonus based on showing up for workouts in place of the "quarterback bonus".

 

If so, then the club got the better of the negotiation.  It is better for the player to get a conventional "quarterback bonus", which the player is guaranteed no matter what, then one which is contingent upon his showing up for workouts.  Very likely Geno intends to show up for the workouts anyway, so in practice it's likely to be a moot point.  But there might be a family emergency, a birth of a child, or some reason he wants to skip the workouts one year.

 

We can't say for sure another agent would have gotten the "quarterback bonus" instead of the money being tied to showing up for voluntary workouts, but other agents routinely get that, so I would say that Jay Z's agent got taken a little on that point.

Edited by kelticwizard
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