NY Jets Contract Questions Answered

[Maxman]

http://www.jetnation.com/?p=4390

By Tyson Rauch – Courtesy Examiner.com

The New York Jets are facing some very difficult contractual decisions as they have several players looking for new deals. Recently Jason Fitzgerald of NYJETSCAP.com took the time to break down some of the contracts of the players that have been capturing headlines. If you are not familiar with NYJETSCAP.com, it is arguably one of the most informative Jets sites on the internet.

Tyson Rauch- New York Jets Examiner: Jason, thank you for taking the time to answer a few questions. As you know everyone in Jets nation is in a panic over Darrelle Revis’ contract situation. Can you explain Darrelle’s current contract?

Jason Fitzgerald, NYJETSCAP.com: If you can remember back to the summer of 2007, you will remember that the Jets and Revis’ agent entered into a long negotiation with the sticking point being the length of Revis’ contract. The Jets won that battle and Revis agreed to be under contract to the team through the 2012 football season. As part of the compromise the Jets paid Revis’ far above market value for his draft slot, and came up with a very unique contract structure that would pay Revis a large amount of money in his final two years, if he proved to be a good football player.

The unique part of the deal will follow the 2010 season. Revis earned the option to void his contract by participating in 35% of the defensive snaps in his rookie season. Revis will void his deal the week after the Super Bowl by paying the Jets back a portion of his advanced money he had received in bonuses throughout the years. That number should be around $1.29 million dollars. In turn the Jets can “buyback” Revis’ contract by increasing his 2011 and 2012 salaries to $5 million dollars and $11 million dollars. $15.7 million of that total is completely guaranteed, and the other $300K is due to Revis in the form of workout bonuses which are essentially guaranteed as well.

The Jets also placed incentive based escalator clauses into the deal which Revis can earn based on performance. There are multiple ways for Revis’ to earn them, but the basic way is for him to earn two more Pro-Bowl berths before 2012. If he does his 2012 salary will jump from $11 million to 15 million dollars.

To put how good of a deal Revis’ received into perspective D’Brickashaw Ferguson, drafted number 4 overall in 2006, will earn with escalators no more than $15 million dollars in the final two years of his contract. Revis, selected 11 slots later, can earn $20 million. Revis’ unhappiness is tied into his pay for the 2010 season, which is only $550K and why he has threatened to hold out. The Jets did protect themselves from such a holdout by placing a clause into Revis’ contract stating that he would lose those $15 million dollars in guarantees if he were to hold out of any mandatory mini-camp or training camp to try to obtain a new contract. Another wrinkle that could affect Revis’ ability to holdout is that he only has 3 years of service in the NFL. If Revis does not report to camp by early August, Revis will not earn an accrued season of service in the NFL, leaving him with just 3 years of service when he voids his contract. Players with only 3 years of services are restricted free agents. There could be a possibility at that point that the Jets would not “buyback” the contract and instead treat him as a restricted free agent, which would pay Revis a far lower salary than the buyback money. Both of these scenarios more or less ensures that Revis will appear in camp on time regardless of his deal.

Revis is reportedly looking to be the highest paid cornerback in the NFL, which would be in the $16 million dollars per year range. How would you break down Darrelle’s real market value?

JF: This $16 million dollar number is being thrown around by Revis is due to the head scratching contract that the Oakland Raiders gave to CB Nnamdi Asomugha which was essentially a 3-year contract for $45.5 million dollars. There are a few problems with using that deal as a guideline for a long-term extension for Revis. One is that the contract was signed by the Raiders, who have a terrible reputation around the NFL for their personnel moves. Often contracts such as these are thrown out in negotiations. Secondly, Asomugha was a free agent when he signed his contract. There is far less negotiating power on the players side when he has multiple years remaining on his contract. Finally there is the fact that this is just a three-year contract for Asomugha. $15 million per year for 3 years is much different than $15 million for 6 or 7 years.

I’d place a value on Revis by comparing the three year total received by the Eagles Asante Samuel, $32.1 million, to Asomugha’s total. Asomugha’s contract represented a 42% raise. If we apply that same figure to the total dollar amount of Samuel’s contract to set the “6 year value” of the Asomugha deal, we end up with a contract that averages around $13.5 million per season rather than the $15 million dollar number that Revis’ camp is using. That would be Revis’ value if he was actually a free agent or one season removed from being a free agent. Considering Revis is under contract for three more seasons he has to accept a discount on that number. I think a fair figure would be between $11.5 and $12 million a season.

What type of contract would you offer to Revis that would be deemed fair by both parties?

JF: I think a fair contract would be to offer Darrelle somewhere between $67 and $70 million on a 6-year contract. Such a deal is going to pay Revis as the best corner in the game and set him up for another lucrative contract at the age of 30. The Jets should guarantee at least $33 million of the contract, and could guarantee him as much as Asomugha if they wanted to. Darrelle is so good that its likely he will earn that figure anyway, so it really does not hurt the Jets to make that goodwill gesture to Revis. Financially, Revis should be happy with that contract as it essentially has him playing out his current deal and gives him the 3-year “Asomugha extension” on top of that.

From the Jets point of view they can lock up Revis through the prime part of his career with such a contract. I think at a real athletic position like cornerback you would much rather be paying for current performance than paying for past performance. By locking up Revis through age 30 they are paying for a great athlete. By waiting a few more seasons and paying him through the age of 33 the Jets are going to likely pay for a few years of downward play as he ages. This also gives the Jets salary cap flexibility and would allow them to go cap free for 10-15% of the contract by signing him in the uncapped year. I think it would be a strong deal for both sides.

Center Nick Mangold is another player starting to cause waves as he is looking for a new contract. Understanding that Nick is in the last year of his rookie deal, what type of contract can you see the Jets offering?

JF: Mangold is the best center in the NFL and I think you could make an argument that he is the best interior lineman in the game. The market-setter for centers was the Rams signing of Jason Brown to a 5 year $37.5 million dollar deal. Mangold is going to shatter that number. Guard Jahiri Evans just signed a contract for 7 years and slightly over $56 million and Mangold is likely going to average about that number per year. I think Nick will likely end up with a 6-year contract that approaches $50 million dollars with somewhere between $22 and 24 million guaranteed.

Linebacker David Harris is also in the last year of his rookie deal, one that appears to be a bargain based on his performance. What do you think would be a fair deal for Harris?

JF: Harris is a little tougher to predict than the other two players because he will only have 4 years of service when his contract expires. With the uncertainty of the CBA, there is a 50/50 chance that the restricted free agency rules will be changed and the Jets may be able to treat Harris as a RFA. This is the reason why the Jets have not seriously approached Harris about an extension. The contract the Jets gave Bart Scott last season (6 years $48 million) is being used as the high water mark for middle linebackers. Neither the Texans DeMeco Ryans nor the 49′ers Patrick Willis exceeded that total, so the market has not risen the way the cornerback market or market for centers has risen. Ryans and Willis are both considered better players than Harris, so David should not be at the top of the market the way Revis and Mangold are. I believe Harris will probably grade out similar to how former Jet Jonathan Vilma graded out, which is around $7 million per season. If Harris is set to be a unrestricted free agent in 2011 I think the Jets would likely offer him a deal for either 5 years at $35 million or 6 years at $43 million. Guarantees would likely be around $15 million. Though injury is always a concern for a player, Harris can maximize his value by playing the season out and proving that he can be just as good as Willis and Ryans.

TR: Jason thank you again for taking the time to answer these questions. This is some valuable information that you shared which I am sure shed some new light on the contract negotiations that Gang Green will be facing. Once again please be sure to check out NYJETSCAP.com

[faba]

thanks Tyson-

The Jets will have to pay Revis sooner or later- better to get this done before training camp approaches in late July to avoid more distractions.

[bitonti]

RE: what Revis is worth

i think if the Jets were in the neighborhood... 11, 12, 13 per year whatever it is... Revis wouldn't be so disgruntled. I agree 16 is probably too much... but they aren't even close to that.

Instead they are giving him offers of 9 or 10mil a year, with none of it guaranteed. That's not even close to what he's worth.

mangold's situation is much more straight forward. Here's the best interior lineman in the NFL going into his walk year and getting no negotiation.

[rick34125]

RE: what Revis is worth

i think if the Jets were in the neighborhood... 11, 12, 13 per year whatever it is... Revis wouldn't be so disgruntled. I agree 16 is probably too much... but they aren't even close to that.

Instead they are giving him offers of 9 or 10mil a year, with none of it guaranteed. That's not even close to what he's worth.

mangold's situation is much more straight forward. Here's the best interior lineman in the NFL going into his walk year and getting no negotiation.

it's negotiations. the jets are probably low balling him because revis is insisting on $16M. when revis comes down in his demands no doubt the jets will up their offer.

[flgreen]

it's negotiations. the jets are probably low balling him because revis is insisting on $16M. when revis comes down in his demands no doubt the jets will up their offer.

Bingo

All of this junk is much ado about nothing, unless Revis is going to be silly he'll get paid

[ECURB]

RE: what Revis is worth

i think if the Jets were in the neighborhood... 11, 12, 13 per year whatever it is... Revis wouldn't be so disgruntled. I agree 16 is probably too much... but they aren't even close to that.

Instead they are giving him offers of 9 or 10mil a year, with none of it guaranteed. That's not even close to what he's worth.

mangold's situation is much more straight forward. Here's the best interior lineman in the NFL going into his walk year and getting no negotiation.

Lets say you go to buy a car worth $14k

The dealer is asking $16k

You would certainly low ball them right? That is just basic negotiating, setting a high and low point before meeting in the middle.

[bitonti]

You would certainly low ball them right? That is just basic negotiating, setting a high and low point before meeting in the middle.

Ideally this is the case. Jets are negotiating and it will all be fine.

but I don't have this level of comfort with the situation.

they've had several negotiations, dating back to the combine in Feb. It's not trending toward a meeting in the middle. it's trending toward a holdout.

The last move the Jets made that cost em money was the Braylon Edwards trade over 8 months ago. Woody's debt is in the $800mil neighborhood according to the extrapolated Forbes numbers.

the whole thing gives me a bad feeling. I don't think the Jets are negotiating. I think they are stalling.

[ECURB]

Ideally this is the case. Jets are negotiating and it will all be fine.

but I don't have this level of comfort with the situation.

they've had several negotiations, dating back to the combine in Feb. It's not trending toward a meeting in the middle. it's trending toward a holdout.

The last move the Jets made that cost em money was the Braylon Edwards trade over 8 months ago. Woody's debt is in the $800mil neighborhood according to the extrapolated Forbes numbers.

the whole thing gives me a bad feeling. I don't think the Jets are negotiating. I think they are stalling.

You are right, the JETS are broke.

They will need to cut everyone and bring in the replacements.

[jason423]

The one thing with lowballing in this situation compared to buying a car is that feelings are involved. If you go to a job interview and you expect an offer of say 50K per year and their initial offer is 30K usually you dont negotiate any more. You simply dont take the job and the lousy offer and move on to another location. Thats the one danger of starting way too low. It makes the player think that either the team does not value him or that the team thinks he is an idiot and will jump at a bad offer.

There are rules in place that may keep the Jets from technically guaranteeing him money, but to come in with offers that are below the Robinson deal is just niot right any way you slice it.

[ECURB]

The one thing with lowballing in this situation compared to buying a car is that feelings are involved. If you go to a job interview and you expect an offer of say 50K per year and their initial offer is 30K usually you dont negotiate any more. You simply dont take the job and the lousy offer and move on to another location. Thats the one danger of starting way too low. It makes the player think that either the team does not value him or that the team thinks he is an idiot and will jump at a bad offer.

There are rules in place that may keep the Jets from technically guaranteeing him money, but to come in with offers that are below the Robinson deal is just niot right any way you slice it.

Feelings?

They name renamed Manhattan after him, they won't stop talking him up.

He is loved and he knows it, low balling will not hurt his feelings it will just piss him off a little.

[flgreen]

The one thing with lowballing in this situation compared to buying a car is that feelings are involved. If you go to a job interview and you expect an offer of say 50K per year and their initial offer is 30K usually you dont negotiate any more. You simply dont take the job and the lousy offer and move on to another location. Thats the one danger of starting way too low. It makes the player think that either the team does not value him or that the team thinks he is an idiot and will jump at a bad offer.

There are rules in place that may keep the Jets from technically guaranteeing him money, but to come in with offers that are below the Robinson deal is just niot right any way you slice it.

No, it

[rick34125]

btw i should have mentioned that this is a great piece. a big thanks to jason and tyson.

[#27TheDominator]

Ideally this is the case. Jets are negotiating and it will all be fine.

but I don't have this level of comfort with the situation.

they've had several negotiations, dating back to the combine in Feb. It's not trending toward a meeting in the middle. it's trending toward a holdout.

The last move the Jets made that cost em money was the Braylon Edwards trade over 8 months ago. Woody's debt is in the $800mil neighborhood according to the extrapolated Forbes numbers.

the whole thing gives me a bad feeling. I don't think the Jets are negotiating. I think they are stalling.

Didn't they take on an extra $1.5M with Holmes? I'm not sure of the deal for Taylor, but it is certainly costing them more than if they simply kept Feely. Would have saved us one of our sillier threads of the offseason too.

[Sperm Edwards]

Didn't they take on an extra $1.5M with Holmes? I'm not sure of the deal for Taylor, but it is certainly costing them more than if they simply kept Feely. Would have saved us one of our sillier threads of the offseason too.

Edwards was also a free agent. They're paying him $6M this year for another tryout. But that doesn't count either.

[bitonti]

Didn't they take on an extra $1.5M with Holmes? I'm not sure of the deal for Taylor, but it is certainly costing them more than if they simply kept Feely. Would have saved us one of our sillier threads of the offseason too.

the taylor/feely thing was a wash. Same salaries. As for Holmes I guess they took on 1.5 Mil but remember there would have been a draft pick in his place so maybe it's a move that costs a million. Braylon's RFA Tender is I guess another small net cash move.

All sweeping statements aside im just not comfortable with the direction of the Revis negotiation. As Jason said it's not great to lowball people and certainly not Kosher to offer Revis an unguarunteed Dunta Robinson contract. It's just wasting everyone's time. No one believes Revis is worth Dunta Robinson money. No guaranteed money is like a slap in the face. It's a joke.

[#27TheDominator]

the taylor/feely thing was a wash. Same salaries. As for Holmes I guess they took on 1.5 Mil but remember there would have been a draft pick in his place so maybe it's a move that costs a million. Braylon's RFA Tender is I guess another small net cash move.

All sweeping statements aside im just not comfortable with the direction of the Revis negotiation. As Jason said it's not great to lowball people and certainly not Kosher to offer Revis an unguarunteed Dunta Robinson contract. It's just wasting everyone's time. No one believes Revis is worth Dunta Robinson money. No guaranteed money is like a slap in the face. It's a joke.

You can have a problem with their negotiating tactics, but that doesn't mean they are broke or won't spend money. They put $1.5M for Holmes, $1.5M for Cromartie and $6M for Edwards. You want to subtract the salaries of the 5th rounder and two UDFA they'd have instead? Fine. The Taylor contract is loaded with incentives and is for more than they were going to spend on Feeley anyway. Taylor will certainly pocket more than the $1.7M unless he falls completely asleep. They are also apparently ready to sign Brunell which will also bump salary. All this in a year when their free agent spending was highly restricted.