Jets eye $8M cut for Chad

[Smizzy]

Club aims at Chad's cap figure

BY KEN BERGER

STAFF WRITER

February 14, 2006

The Jets and agents for Chad Pennington have begun discussions aimed at dramatically reducing the injured quarterback's salary-cap figure for 2006, a person with knowledge of the situation confirmed yesterday.

Such talks have been expected since October, when Pennington, 29, had his second right rotator cuff operation in eight months.

The seven-year, $64-million deal Pennington signed in September 2004 called for a base salary of $6 million this season. Pennington also is scheduled to receive a $3-million roster bonus on the first day of the league year in early March. Those figures, plus $3 million of prorated signing-bonus money, add up to a $12-million cap figure for 2006.

Even before Pennington's injuries, the Jets had provisions built into his contract to make it more cap-friendly this season, a person with knowledge of the deal said. They have the option of converting his 2006 base salary to guaranteed money, which would allow them to prorate it over the next four years for cap purposes. The expected move would reduce Pennington's cap figure to $7.5 million in '06.

But that's only accounting. The team is believed to be seeking a much more aggressive adjustment, including a playing-time incentives clause that would further reduce his cap figure while forcing Pennington to earn some of the money the team already has agreed to pay.

But Pennington, who already has received $22 million for playing 18 games since signing the contract, is under no obligation to revisit the deal. And the Jets essentially are powerless to force him to renegotiate because the cost of releasing him would be too high - either a $9-million or $12-million cap hit in '06, depending on the timing of his release.

Something must be worked out by the end of the month, when the Jets will have to make plans to bring in a quarterback to compete with Pennington.

The last time Pennington spoke with reporters, the day after the Jets' season ended, he said, "I've put my basic trust" in the Jets and his agent, Tom Condon, to work something out. But he reacted defiantly to questions about taking a pay cut, pointing out that he's put himself at risk for the team by playing injured.

"There are no questions people can ask about the success of our team when I've been healthy," he said. "I've done everything I could've possibly done to put myself in a position to play for this team and play well for this team."

Notes & quotes: The Jets have hired University of Michigan defensive coordinator Jim Herrmann to coach the linebackers and former linebacker Bryan Cox to assist Denny Marcin in coaching the defensive line. Coach Eric Mangini is expected to complete his coaching staff by the end of the week

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[Smizzy]

Jets eye $8M cut for Chad

BY RICH CIMINI

DAILY NEWS SPORTS WRITER

Chad Pennington might decide 89% pay cut is too painful.

The anticipated staredown between the Jets and Chad Pennington is on.

Faced with the task of slashing about $26 million from the salary cap over the next two weeks, the Jets have approached Pennington about taking a significant pay cut, a person with knowledge of the situation confirmed yesterday.

The action came as no surprise, considering the bloated cap situation and the uncertainty of Pennington's twice-surgically repaired throwing shoulder, but the amount of the proposed cut is eye-opening.

Pennington is due to make $9 million in salary and bonuses for 2006, and the Jets want to slash that to a $1 million base salary, according to the person. He would be able to recoup the difference by achieving various incentives.

The clock is ticking. If the two sides don't reach an agreement by March 3 - the start of the league year, when Pennington is due a $3 million roster bonus - the Jets could release the 29-year-old quarterback.

It comes down to an old-fashioned game of poker. The Jets probably don't want to cut Pennington because they'd get stuck with an enormous bill ($12 million in "dead" money on their 2006 cap), but they also don't want to pay franchise money for a quarterback who might not be healthy enough to start.

At the same time, Pennington probably doesn't want to start over - realistically, how much would he command on the open market? - but he also has a tremendous amount of pride and might not be willing to swallow such a massive cut.

The Jets didn't comment on the situation.

In 2004, Pennington, cashing in on his breakout 2002 season, signed an eight-year, $64 million contract.

No player preaches teamwork more than Pennington - he offered $2 million of his own salary last year to sign Laveranues Coles but his agent, Tom Condon, is known as a tough negotiator. People close to Condon said they would be shocked if he agreed to a $1 million base salary.

Because of injuries, Pennington has started only 16 games over the last two seasons. When it was suggested in October after his second surgery that he should feel indebted to the club, which has paid him $22 million for 2004 and 2005, Pennington replied, "I've paid a price for this organization. I put it on the line - hurt, not hurt, you name it."

He sounded more flexible at the end of the season, saying, "We've always done a good job on both sides, working things out and getting things straight. I've put my basic trust in them, and they'll get things taken care of."

Even if Pennington stays, the Jets almost certainly will acquire a veteran to compete with him. The new regime, headed by GM Mike Tannenbaum and coach Eric Mangini, also might draft or otherwise aquire their quarterback of the future.

The top free agent is the Chargers' Drew Brees, who also is recovering from shoulder surgery. The Jets' new offensive coordinator, Brian Schottenheimer, tutored Brees as the San Diego quarterbacks coach. If the Chargers don't put the franchise tag on Brees, he'd be a natural fit with Schottenheimer, although his shoulder would have to be a concern.

Originally published on February 14, 2006

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[GreenBeans]

Looks to me like Pennington is going to protect his cash. I can't say I blame him, especially after the past year and a half he's had...

[Kentucky Jet]

CHAD knows that this is a business. He also knows thathe TEAM must come first!

[NIGHT STALKER]

Jets | Team working to reduce Pennington's cap number

Mon, 13 Feb 2006 19:01:41 -0800

Ken Berger, of Newsday, reports the New York Jets and agents for QB Chad Pennington have begun discussions aimed at dramatically reducing the injured quarterback's salary cap figure for 2006, according to a source close to the situation. Pennington's contract calls for a base salary of $6 million this season. Pennington also is scheduled to receive a $3 million roster bonus on the first day of the league year in early March. Those figures, plus $3 million of prorated signing bonus money, add up to a $12 million cap figure for 2006. They have the option of converting his 2006 base salary to guaranteed money, which would allow them to prorate it over the next four years for cap purposes. The expected move would reduce Pennington's cap figure to $7.5 million in 2006. The team is believed to be seeking a much more aggressive adjustment, including a playing-time incentives clause that would further reduce his cap figure while forcing Pennington to earn some of the money the team already has agreed to pay. Something must be worked out by the end of the month, when the Jets will have to make plans to bring in a quarterback to compete with Pennington.

[124]

It looks like from this day foward to March 3rd it's going to be very interesting around here with cuts coming up and Pennington's contract discussions in the air.

[faba]

I really think there will be some agreement to give the Jets some relief cap wise- the type of person Chad is or has himself portrayed as a team player

[mbn007]

They will agree to some kind reduction, but I doubt that it will get as low as 1 million.

[JerryK]

Chad will try to get as much as he can, which will probably be a cut to stay in NY.

As soon as he leaves this team, he's selling insurance. Unless he can find a run-only team (that doesn't watch film) to take him, he's gotta stay...on the Jets' terms.

[Bob]

Chad should tell them to pound salt, take his signing bonus and whatever other money they're obligated to pay him, and spend the rest of his life enjoying his millions.

[GimmeShelter]

Chad should tell them to pound salt, take his signing bonus and whatever other money they're obligated to pay him, and spend the rest of his life enjoying his millions.

Agree. Recoup fully from surgery and sign on elsewhere if need be.

The FO has no choice due to CAP problems but Pennington owes them nothing.

[DHJF]

Am I the only one that wants to cut the guy and take our cap lumps in '06? I mean, really. We have an unproven all new coaching staff, a new GM, and a QB that's played in 50% of his games over the past 2 years. From my knothole, I see another 4-12 team in '06.

So why not take our lumps now? Nobody expects us to win. I know I don't. So let's start from the ground up with respect to player personnel as well.

We need to get rid of the albatross that is Chad Pennington.

[raffyD]

Am I the only one that wants to cut the guy and take our cap lumps in '06? I mean, really. We have an unproven all new coaching staff, a new GM, and a QB that's played in 50% of his games over the past 2 years. From my knothole, I see another 4-12 team in '06.

So why not take our lumps now? Nobody expects us to win. I know I don't. So let's start from the ground up with respect to player personnel as well.

We need to get rid of the albatross that is Chad Pennington.

Chad sacrificed his career and physical well being for the good of our team so I think he deserves at least one more shot to come back (albeit at a reduced price). If anyone deserved another chance it's Chad, and I for one am all for it.

[Green DNA]

See ya Chad

[Scott Dierking]

Am I the only one that wants to cut the guy and take our cap lumps in '06? I mean, really. We have an unproven all new coaching staff, a new GM, and a QB that's played in 50% of his games over the past 2 years. From my knothole, I see another 4-12 team in '06.

So why not take our lumps now? Nobody expects us to win. I know I don't. So let's start from the ground up with respect to player personnel as well.

We need to get rid of the albatross that is Chad Pennington.

Who here has looked at the medical prognosis or heard it directly from his doctor's?

Heck, we don't even know teh exact procedure that was done most recently.

Truth is, we don't have any of the details, so to presumptuously just assume that he has nothing left, without those benefits is a giant risk.

Too much that we don't know

[DHJF]

Chad sacrificed his career and physical well being for the good of our team so I think he deserves at least one more shot to come back (albeit at a reduced price). If anyone deserved another chance it's Chad, and I for one am all for it.

I couldn't disagree more. This is a business, not a family. The whole "loyalty for family sake" atmosphere is history. (At least I hope it is) All of the changes up front have been made in order to bring us a Championship, something we haven't tasted in nearly 40yrs.

If you read between the lines, Penny has already said he won't take a pay cut. Does anyone really think Chad is capable of leading us to a Championship?

[DHJF]

Who here has looked at the medical prognosis or heard it directly from his doctor's?

Heck, we don't even know teh exact procedure that was done most recently.

Truth is, we don't have any of the details, so to presumptuously just assume that he has nothing left, without those benefits is a giant risk.

Too much that we don't know

I think your posts are great, Dierking. I really do. And you're right, we don't know what was done to his shoulder or the prognosis. But for you to presumptuously assume that he has anything left is just as big a risk.

I, for one, am not willing to risk the future of the Jets on a twice repaired wing. I'd rather go with a known commodity (see Kerry Collins) or an unproven rookie with great upside (see Cutler) than throw Pennington under C again.

[raffyD]

I couldn't disagree more. This is a business, not a family. The whole "loyalty for family sake" atmosphere is history. (At least I hope it is) All of the changes up front have been made in order to bring us a Championship, something we haven't tasted in nearly 40yrs.

If you read between the lines, Penny has already said he won't take a pay cut. Does anyone really think Chad is capable of leading us to a Championship?

My understanding was that cutting him and keeping him for next year is roughly the same cost so I don't see any reason not to give him a shot, even from a business perspective. You want a rookie QB or a Schaub competing with Chad, I'm fine with that as well but I'm not ready to simply throw him to the wolves w/o giving him one last shot. Besides, the rookie/Schaub could marinate for a little while on the sidelines and learn everything. I know it's a pipe dream but I'm smoking it with full inhale and I think Chad can shock the fans next year w/ a miracle comeback.

[Scott Dierking]

I think your posts are great, Dierking. I really do. And you're right, we don't know what was done to his shoulder or the prognosis. But for you to presumptuously assume that he has anything left is just as big a risk.

I, for one, am not willing to risk the future of the Jets on a twice repaired wing. I'd rather go with a known commodity (see Kerry Collins) or an unproven rookie with great upside (see Cutler) than throw Pennington under C again.

DHJ-My idea not to assume goes both ways-We just don't know.

The people that have this info are not forthcoming (for obvious reasons).

The guess is that the prognosis is not good, just based on some of teh initial gestures we are seeing. But again, that is just speculation.

The Jets probably owe it to thems selves to leave a window for Chad to crawl through to stay. But, as many have noted correctly, they need to serve the club's best interest first. and that is right.

[DHJF]

My understanding was that cutting him and keeping him for next year is roughly the same cost so I don't see any reason not to give him a shot, even from a business perspective. You want a rookie QB or a Schaub competing with Chad, I'm fine with that as well but I'm not ready to simply throw him to the wolves w/o giving him one last shot. Besides, the rookie/Schaub could marinate for a little while on the sidelines and learn everything. I know it's a pipe dream but I'm smoking it with full inhale and I think Chad can shock the fans next year w/ a miracle comeback.

I'm no cap guru either, but I think if we release him, we take the full cap hit in '06, then owe him nothing moving forward. (Someone please correct me if I'm wrong)

We gave him a shot last year (after his 1st surgery) and he failed miserably. I like Penny, really I do. I think he's a victim of unfortunate circumstances. But he's got to go in order for this team to reach some semblance of being competitive in the somewhat-near term.

[afosomf]

Repeat after me

There is no time for sentiment in Big Business!!!!!!!!!!

Time for CP to pack his bags!! Do not feel sorry for him, he is still getting signing bonus!!!

[DHJF]

DHJ-My idea not to assume goes both ways-We just don't know.

The people that have this info are not forthcoming (for obvious reasons).

The guess is that the prognosis is not good, just based on some of teh initial gestures we are seeing. But again, that is just speculation.

The Jets probably owe it to thems selves to leave a window for Chad to crawl through to stay. But, as many have noted correctly, they need to serve the club's best interest first. and that is right.

I agree - Chad deserves a window. But his entire deal will need to go through a major reconstruction in order for me to accept it.

[LionelRichie]

I couldn't disagree more. This is a business, not a family. The whole "loyalty for family sake" atmosphere is history. (At least I hope it is) All of the changes up front have been made in order to bring us a Championship, something we haven't tasted in nearly 40yrs.

If you read between the lines, Penny has already said he won't take a pay cut. Does anyone really think Chad is capable of leading us to a Championship?

if chad's arm was the same as it was in '02 maybe he could lead them to the super bowl. if he is anything like he has been the last 2 seasons then he is pretty much done at this point.

i just can't see a team giving an additional $9M to a QB that cannot pick up a ball and throw it.

the way i see it chad has 2 choices: take $1M from the jets or wait until camp and see if he can throw the ball far enough to sign on with another team. the jets are the only team in the nfl that benefit from keeping him on the roster, even if he ends up on IR.

[MiamiJet]

I like it.

I like how Mangini has gone about filling out his staff. I also like that he is addressing this Chad situation immediately.

With the draft only about two motnhs away, and the Combine one week away, Mangini has to know where he stands with Chad. It dictates how they approach the draft and free agency. it sets the table for everything else.

I appreciate what Chad has done for this team, and the heart he's displayed, but realistically, I cannot believe that he will ever be the player we saw in 2002. The team is doing the right thing.

The Jets hold the cards here. Sure, the cap hit will hurt, but Chad will not be earning a roster bonus or salary in 2006, unless he restructures or signs on with another team. The likelihood of the latter is small.

[AMJets]

It would be great if this kind of cut is going to happen, but I just can't see it being as drastic as it has been said. I expect either a major restructure (similar to the money being thrown around here, but restructured,) or for him to take a pay cut that is a bit reduced from this figure.

[Scott Dierking]

It would be great if this kind of cut is going to happen, but I just can't see it being as drastic as it has been said. I expect either a major restructure (similar to the money being thrown around here, but restructured,) or for him to take a pay cut that is a bit reduced from this figure.

I would guess a combination of all 3:

-restructure

-partial cut

-incentives

What the Jets threw out is just the opening of negotiations, and I am sure they expect it to move.

[johnny green balls]

funny how some people think chad should "put the team first" when there is no doubt that if the Jets could save dough by cutting him they would. jets could've/should've had a playing time clause in his latest contract as he already showed a propensity to get hurt.

[AMJets]

funny how some people think chad should "put the team first" when there is no doubt that if the Jets could save dough by cutting him they would. jets could've/should've had a playing time clause in his latest contract as he already showed a propensity to get hurt.

When he signed the contract, the only injury he had suffered was on one freak play where he broke the wrist of his non-throwing hand. They had no reason to put any sort of injury clause in the contract.

[johnny green balls]

When he signed the contract, the only injury he had suffered was on one freak play where he broke the wrist of his non-throwing hand. They had no reason to put any sort of injury clause in the contract.

every one of his injuries have been "freak plays" when you play with a noodle, **** happens.

[AMJets]

every one of his injuries have been "freak plays" when you play with a noodle, **** happens.

The point is, he only suffered one injury to his non-throwing hand up to that point. There was no reason to put the clause in the contract, because no one knew what has happened so far would happen.

[johnny green balls]

The point is, he only suffered one injury to his non-throwing hand up to that point. There was no reason to put the clause in the contract, because no one knew what has happened so far would happen.

point taken but i still think he should take the $$ and run. jets could've negotiated an injury clause, probably would've cost more signing bonus up front in compensation but so does insurance.

[mudcat21]

My take on why Pennington has little choice but to renegotiate. If he takes a paycut, the Jets keep him on the team and he gets a roster bonus and a salary in 2006. If the Jets cut Penny, he gets no additional cash from the team. He already got a big initial signing bonus upfront when he signed the contract. From what I can determine the cap figure for 2006 is $12M. $3M roster bonus, $6M Salary, and $3M prorated bonus money. Even though the cap hits is $12M the Jets will payout $9M in additional dollars (roster bonus + salary) if no renegotiation occurs. So Penny would get $9M if the team keeps him and doesn't renegotiate (a highly remote possibility). If he renegotiates then he will get between $1M and $9M depending on what incentives he meets if any. If he doesn't renegotiate and the team cuts him, he gets no additional money. The team however must take a $12M cap hit because his bonus money which was spread for cap purposes over the life of the contract will accelerate all into 2006. So Penny has no choice but to negotiate if he wants additional money in his pocket. The only way he could make out is if another team signs him after the Jets release him and he signs an incentive laden contract and turns out to be healthy this year. Bottomline is it is in his best interest to renegotiate.

[Bugg]

When Pennington was healhty, he was a great leader, damn the arm.

I like that Mangini isn't wasting time dithering about this. The franchise needs this settled one way or the other. My hope would be that he can come back and compete. But I trust Mangini knwos better than any of us.

One thing that would really gnaw at me if I were Pennington-what the eff was Edwards thinking putting him in vs. the Jags this year, or at all during the last month of 2005? Pennington bailed this creep out in 2002, or Edwards' career was in the sh!tter for good. And the payback is this POS moves on mouthing his horseh!t after taking a torch to Pennignton's career.

In a sense the Jets franchise owes him. But the reality is Mangini owes him nothing. If Pennington is done it's my sincerest hope he sues the living sh!t out of that lying coocksvcker in KC. Love to see his lying hiney in a witness chair under oath for more than 5 minutes. It would be shooting fish in a barrell.

Sorry for all the curses. But I really hate Edwards more and more. And given this unnecessry mess he made of Pennington's career, so should all of us. It's unconscionable he gets a new job and that the NFLPA isn't all over him for this. He sent Pennington out there almost certainly knowing he could kill his career, and he did it twice in 2 seasons. And Pennington never has these injuries at all other than Edwards' retarded preseason idiocy in 2003.

[124]

When Pennington was healhty, he was a great leader, damn the arm.

I like that Mangini isn't wasting time dithering about this. The franchise needs this settled one way or the other. My hope would be that he can come back and compete. But I trust Mangini knwos better than any of us.

One thing that would really gnaw at me if I were Pennington-what the eff was Edwards thinking putting him in vs. the Jags this year, or at all during the last month of 2005? Pennington bailed this creep out in 2002, or Edwards' career was in the sh!tter for good. And the payback is this POS moves on mouthing his horseh!t after taking a torch to Pennignton's career.

In a sense the Jets franchise owes him. But the reality is Mangini owes him nothing. If Pennington is done it's my sincerest hope he sues the living sh!t out of that lying coocksvcker in KC. Love to see his lying hiney in a witness chair under oath for more than 5 minutes. It would be shooting fish in a barrell.

Sorry for all the curses. But I really hate Edwards more and more. And given this unnecessry mess he made of Pennington's career, so should all of us. It's unconscionable he gets a new job and that the NFLPA isn't all over him for this. He sent Pennington out there almost certainly knowing he could kill his career, and he did it twice in 2 seasons. And Pennington never has these injuries at all other than Edwards' retarded preseason idiocy in 2003.

I couldn't agree more with this post.