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Coles Trade Money Details


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Redskins | More on Coles Trade - from www.KFFL.com

Sat, 5 Mar 2005 14:05:06 -0800

Len Pasquarelli, of ESPN.com, reports the agent of recently traded New York Jets WR Laveranues Coles, Roosevelt Barnes, told ESPN that a few issues had to be resolved, but the Washington Redskins and the Jets have agreed on all of the key parameters. Coles will receive guarantees totaling $8 million, bringing his two-year earnings from the team to a whopping $21 million in guaranteed money.

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I'm not quite sure what this means. Who is paying the bonus...the Jets or the Redskins? Better be the Skins.

I summon thee Flowtrain.

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Redskins | More on Coles Trade - from www.KFFL.com

Sat, 5 Mar 2005 14:05:06 -0800

Len Pasquarelli, of ESPN.com, reports the agent of recently traded New York Jets WR Laveranues Coles, Roosevelt Barnes, told ESPN that a few issues had to be resolved, but the Washington Redskins and the Jets have agreed on all of the key parameters. Coles will receive guarantees totaling $8 million, bringing his two-year earnings from the team to a whopping $21 million in guaranteed money.

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I'm not quite sure what this means. Who is paying the bonus...the Jets or the Redskins? Better be the Skins.

I summon thee Flowtrain.

It sounds like based on this article the Jets gave coles 8 million upfront (8+13=21). That doesn't mean it was a bad move though. The Jets could be pushing money to the back of the contract in order to make one more big move.

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one more big move - Ty Law or Burress

Why would the Jets sign Burress after we've already traded for Coles?

If we make another big move besides a corner, it should be for a defensive tackle or offensive lineman. Also, a kicker, if you consider that a big move. With Feely and Reed on the market, it's ludicrous that Doug Brien isn't currently bagging groceries at Market Basket.

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Could he be thinking of giving Abe a new contract?

He could be but most likely an abe contract would increase the Jets cap room by about 2-3 million as long as it was a typical contract for a DE/OLB.

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the reason i mentioned Buress i smore than likely Wayne is gone - Crotch can step in but could you imagine Coles, Mceriens and Burress lined up at WR -

Large targets -

Wayne already recieved a roster bonus a few days ago.

If the Jets were going to cut him, they'd have done it before then.

I'd like to see look for a reciever in the draft, only because there are a lot of sleepers out there and I'd love for Heimerdinger to get ahold of one.

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Wayne already recieved a roster bonus a few days ago.

If the Jets were going to cut him, they'd have done it before then.

Actually Rich CImini said on 1050 last week - he was not cut because of cap implications.. But he can be cut on June first the day the 2nd part of his bonus is due.

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This is the best explanation I read.....

His signing bonus for the 7 year deal was $13M dollars. This was guaranteed -- and remember that its not actually salary. Its signing bonus. He could have cut off both his legs, and he'd still get the $13M (on the other hand, if he did so, he wouldn't get his yearly salary).

His salary for 2003 and 2004 was 525k and 535k for an additional 1.05M. Hence, he earned $14M while in DC.

Coles was scheduled to earn the following salaries from 2005 to 2009:

2005 1500000.00

2006 3000000.00 (plus $2M roster bonus)

2007 3000000.00 (plus $500k roster bonus)

2008 5000000.00

2009 6000000.00

NONE of these amounts were ACTUALLY guaranteed in the contract, as far as I know. Clearly this is a big risk for Coles -- if he injured his toe (for example) he could be dropped from the team, and wouldn't earn a red cent.

HOWEVER -- and this is where the collective bargaining agreement comes in -- because of the way that a signing bonus counts against the cap OVER THE LENGTH of the deal, it would have been too expensive for the Skins to release him early on in his deal without MAJOR major cap ramifications (which they've just accomplished this year -- but there's fallout -- including losing some of their players to FA, and not being able to sign as many FAs as they might like to). This is a way to share the contract risk between the player and the team.

For example -- the signing bonus counts for about $1.9M against the cap every year ($13M/7yrs), so here would be the cap charges if Coles were cut in any given year:

2005: $9.5M dead money

2006: $7.6M dead money

2007: $5.7M dead money

2008: $3.8M dead money

2009: $1.9M dead money

Obviously, it would be difficult to cut Coles early on in the deal because the cap hit is so big...in fact, 2008 is the first year he could be cut for a NET cap savings.

This means that his 2005-2007 were basically protected (or insured) by his signing bonus, or "effectively" (if not actually) guaranteed. In those three years, he's scheduled to make $10M dollars.

BUT, as soon as he was traded to the Jets, the entire cap charge IS in fact accelerated on the Skins Cap (hence the $9.5M charge), and he counts NOTHING against our cap.

Beyond that, this is what it would cost the Jets to cut coles from here until 2009:

2005: $0

2006: $0

2007: $0

2008: $0

2009: $0

The trade is a GREAT deal for us, but it NO LONGER reflects the intentions of the two parties who signed it (Washington and Coles) -- the risk for the contract is zero for the Jets, and 100% for Coles (if he's out, he's out).

Coles' agent was very smart to ask for a tweaking of the contract to align it back with the original contract's intent (in fact, I think that if the agent hadn't done this, it would be malpractice).

Note that if the Jets have now guaranteed $8M over the next three years, this is just a little less than what would have been the case with the skins had he stayed through 2007 ($10M).

I suspect that the remaining $2M is distributed among "non-guaranteed" salaries (which will be paid out nonetheless).

Again, the $13M was guaranteed in the traditional sense of the term, while the remaining $10M is insured (or what I call "effectively guaranteed") by the pro-ration of the signing bonus over the life of the contract

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