heres the breakdown
NO SIGNING BONUS, NO OPTION BONUS FOR RUSSELL
Nancy Gay of the San Francisco Chronicle and John Czarnecki of FOXSports.com have gotten their hands on the contract numbers payable to Raiders quarterback JaMarcus Russell.
We've analyzed both reports, and the most significant news is that Russell received no signing bonus, and no option bonus. However, he still will get $29 million in actual guarantees, and another $3 million in the form of the so-called "falling off of a log" bonus, which is regarded in league circles as guaranteed (unless your name is Kellen Winslow).
Russell's people wanted to maximize the option bonus, because options bonuses are not subject to forfeiture in the event of a suspension, a holdout, or some other default. On this point, the agents completely caved.
No signing bonus was used because the amount of the signing bonus does not count toward the basis for application of the so-called "25 percent rule." Under that rule, rookie contracts can only grow each year by 25 percent of the first-year value. The first-year value is determined by the rookie pool.
For Russell, the remaining rookie pool amount was $2.975 million. Any signing bonus would have reduced the maximum growth in each year from 25 percent of $2.975 million, which equates to $743,750. For example, if Russell's signing bonus had been $6 million, $1 million would have counted toward the 2007 salary cap. Thus, Russell could have received only $1.975 million in 2007 from other types of compensation, such as base salary. As a result, the maximum increase in 2008 and each year thereafter would have been only $493,750.
So the guaranteed money comes from guaranteed base salaries, with each year's pay being $743,750 more than the year before.
Thus, Russell will make $2.975 million in 2007, $3.71875 million in 2008, $4.4625 million in 2009, $5.20625 million in 2010, $5.95 million in 2011, and $6.693 million in 2012. All guaranteed.
To simulate the signing/option bonus, Russell will receive advance payment of a big chunk of the guaranteed base salaries. If Russell later is unable to play in the seasons from which the salary advances arise, the Raiders presumably will be able to recoup any base salary relating to games that he misses. (We suspect that the contract might also contain language requiring any and all unearned advances to be returned in the event of any suspension, holdout, or motorcycle/jet ski/mechanical bull/tramampoline accidents.)
The remaining $3 million in "guaranteed" money will be paid if Russell participates in 35 percent of the snaps in 2007, 45 percent in 2008, or 50 percent in 2009. With Russell unlikely to play in 2007, there's a risk (not huge, but a risk nonetheless) that Russell won't earn the money if he is injured or ineffective to the point of being benched in either 2008 or 2009 -- or if he simply doesn't win the starting job.
With the advances on the guaranteed base salaries and via some "easily-attained escalators," Russell can earn more than $41 million in the first four years of the deal. The specific triggers for the escalators (other than the $3 million "log" bonus) are not yet reported.
ProFootball Talk
NO SIGNING BONUS, NO OPTION BONUS FOR RUSSELL
Nancy Gay of the San Francisco Chronicle and John Czarnecki of FOXSports.com have gotten their hands on the contract numbers payable to Raiders quarterback JaMarcus Russell.
We've analyzed both reports, and the most significant news is that Russell received no signing bonus, and no option bonus. However, he still will get $29 million in actual guarantees, and another $3 million in the form of the so-called "falling off of a log" bonus, which is regarded in league circles as guaranteed (unless your name is Kellen Winslow).
Russell's people wanted to maximize the option bonus, because options bonuses are not subject to forfeiture in the event of a suspension, a holdout, or some other default. On this point, the agents completely caved.
No signing bonus was used because the amount of the signing bonus does not count toward the basis for application of the so-called "25 percent rule." Under that rule, rookie contracts can only grow each year by 25 percent of the first-year value. The first-year value is determined by the rookie pool.
For Russell, the remaining rookie pool amount was $2.975 million. Any signing bonus would have reduced the maximum growth in each year from 25 percent of $2.975 million, which equates to $743,750. For example, if Russell's signing bonus had been $6 million, $1 million would have counted toward the 2007 salary cap. Thus, Russell could have received only $1.975 million in 2007 from other types of compensation, such as base salary. As a result, the maximum increase in 2008 and each year thereafter would have been only $493,750.
So the guaranteed money comes from guaranteed base salaries, with each year's pay being $743,750 more than the year before.
Thus, Russell will make $2.975 million in 2007, $3.71875 million in 2008, $4.4625 million in 2009, $5.20625 million in 2010, $5.95 million in 2011, and $6.693 million in 2012. All guaranteed.
To simulate the signing/option bonus, Russell will receive advance payment of a big chunk of the guaranteed base salaries. If Russell later is unable to play in the seasons from which the salary advances arise, the Raiders presumably will be able to recoup any base salary relating to games that he misses. (We suspect that the contract might also contain language requiring any and all unearned advances to be returned in the event of any suspension, holdout, or motorcycle/jet ski/mechanical bull/tramampoline accidents.)
The remaining $3 million in "guaranteed" money will be paid if Russell participates in 35 percent of the snaps in 2007, 45 percent in 2008, or 50 percent in 2009. With Russell unlikely to play in 2007, there's a risk (not huge, but a risk nonetheless) that Russell won't earn the money if he is injured or ineffective to the point of being benched in either 2008 or 2009 -- or if he simply doesn't win the starting job.
With the advances on the guaranteed base salaries and via some "easily-attained escalators," Russell can earn more than $41 million in the first four years of the deal. The specific triggers for the escalators (other than the $3 million "log" bonus) are not yet reported.
ProFootball Talk
