Watt 3/$124M with $108 Guaranteed

[NorthCoast]

the whole amount? Wouldn’t they pay some of that guaranteed money this year which would reduce the total?

I’m not a cap guy so I’m asking for clarification on this.

Not positive on it but even if it's reduced by the Yr1 amount, the total amount is not in Rooney's pocket.

[NorthCoast]

".....this is going to be the greatest wildcard exit yet!...."

[The Standard]

Was it ever really in doubt?

Nope.

Just a matter of how much and and how long.

[Northern_Blitz]

[steeler_fan_in_t.o.]

See the post about cap % being funny money. It's the cash spend that is real. Remember, a team has to put the guaranteed portion in an escrow account. This means Rooney has no access or interest bearing on $108M dollars for 3 years. I don't know about you, but that would be a tough swallow for me.

An escrow account would be at a set interest rate that pays out known amounts at set dates. A better example would be Ohtani. I think his contract was 10 years / $700M but paying $1M/yr in each of the first ten years and $69M / yr for each of the next 10. The Dodgers wouldn't put $700M in the escrow fund today, they put an amount that reached $69M at a set interest rate, 20 years. Plus, a set amount that paid out $69M in 19 years etc...all the way to approx $1M that pays out $1M this year - of course all depending on the structure and payment terms of the contract. The amount that pays $69M in 20 years is probably no more than $30M today with the present day amounts increasing as the timeline is shorter.

[Northern_Blitz]

An escrow account would be at a set interest rate that pays out known amounts at set dates. A better example would be Ohtani. I think his contract was 10 years / $700M but paying $1M/yr in each of the first ten years and $69M / yr for each of the next 10. The Dodgers wouldn't put $700M in the escrow fund today, they put an amount that reached $69M at a set interest rate, 20 years. Plus, a set amount that paid out $69M in 19 years etc...all the way to approx $1M that pays out $1M this year - of course all depending on the structure and payment terms of the contract. The amount that pays $69M in 20 years is probably no more than $30M today with the present day amounts increasing as the timeline is shorter.

I think the NFL mandates that owners put the entire guaranteed amount in an escrow account, but I could be wrong.

I think that's the reason that teams like the Steelers and Bengals really resist(ed) giving guarantees beyond the first year.

Could be wrong, but I think that's how I've heard it explained. I've also heard that it's a rule that at least some teams are trying to change.

[The Standard]

In the NFL, the "guaranteed money escrow" refers to a mechanism where teams deposit a portion of a player's guaranteed contract money into an escrow account. This is done to ensure players will receive their guaranteed money even if the team faces financial difficulties or the owner's situation changes. Essentially, it protects players by guaranteeing their payments, regardless of the team's financial stability.
Here's a more detailed explanation:

• Purpose:
  The primary reason for the escrow is to safeguard players' guaranteed money. In the past, there were instances of teams failing to meet their financial obligations to players, leading to the implementation of this rule.
• How it works:
  When a team signs a player to a contract with guaranteed money, they must deposit a specific amount into an escrow account. The exact amount depends on the contract's terms, often calculated as the present value of the remaining guaranteed money after the first year's payout.
• Impact on teams:
  While the escrow protects players, it also places a financial burden on teams, particularly those with less liquid cash. Some owners might be more hesitant to offer large, fully guaranteed contracts due to the immediate cash outlay required for escrow.
• Examples:
  The Deshaun Watson contract with the Browns, a highly guaranteed deal, highlighted the escrow requirement and its potential impact on other teams.
• Evolution:
  The concept of fully guaranteed contracts in the NFL is evolving. While not mandated by the collective bargaining agreement (CBA), players are increasingly negotiating for more guaranteed money, pushing the boundaries of the escrow rules.

[WindyCitySteel]

The radio hosts defending this with the “they’re 1-10 without him” argument are missing the point. They’re so dependent on TJ because they’ve botched the QB position so badly and are forced to compete in low-scoring rock fights. That argument is an indictment on team building.

If the goal is to pick the next franchise QB next year, this was a bad move, TJ could have fetched more draft capital to possibly move up to #1. If they’re going to keep going all in until TJ and Cam are done, different story.

[NorthCoast]

An escrow account would be at a set interest rate that pays out known amounts at set dates. A better example would be Ohtani. I think his contract was 10 years / $700M but paying $1M/yr in each of the first ten years and $69M / yr for each of the next 10. The Dodgers wouldn't put $700M in the escrow fund today, they put an amount that reached $69M at a set interest rate, 20 years. Plus, a set amount that paid out $69M in 19 years etc...all the way to approx $1M that pays out $1M this year - of course all depending on the structure and payment terms of the contract. The amount that pays $69M in 20 years is probably no more than $30M today with the present day amounts increasing as the timeline is shorter.

I think there is a difference between 'fully' guaranteed and 'total' guarantees. Fully; the entire guaranteed amount is escrowed. Total; only the amount guaranteed in a particular year is escrowed. The 'total' guarantees is a way for some owners to skirt the rule;

“Per current league rules, all future fully guaranteed money due in a player contract must be placed in escrow at the time the deal is consummated. It's antiquated and has long been a bone of contention for the NFLPA. It was implemented long before the NFL became the 365-days-a-year revenue and content monster it is now, and it was put in place on the surface to prevent a team from defaulting on a contract to a player.”

[pfelix73]

My God. Some of these posts are so negative. Get a grip on life. Be happy for him. He is still in his prime.

[feltdizz]

My God. Some of these posts are so negative. Get a grip on life. Be happy for him. He is still in his prime.

Watt is more richer. Let’s celebrate!!! Hip Hop Hooray.

Have we won a playoff game yet?

[WindyCitySteel]

My God. Some of these posts are so negative. Get a grip on life. Be happy for him. He is still in his prime.

Happy for him, don’t think it’s necessarily the right long term move with our QB situation, unless the goal is to just sneak into the playoffs every year.

[Northern_Blitz]

In the NFL, the "guaranteed money escrow" refers to a mechanism where teams deposit a portion of a player's guaranteed contract money into an escrow account. This is done to ensure players will receive their guaranteed money even if the team faces financial difficulties or the owner's situation changes. Essentially, it protects players by guaranteeing their payments, regardless of the team's financial stability.
Here's a more detailed explanation:

• Purpose:
  The primary reason for the escrow is to safeguard players' guaranteed money. In the past, there were instances of teams failing to meet their financial obligations to players, leading to the implementation of this rule.
• How it works:
  When a team signs a player to a contract with guaranteed money, they must deposit a specific amount into an escrow account. The exact amount depends on the contract's terms, often calculated as the present value of the remaining guaranteed money after the first year's payout.
• Impact on teams:
  While the escrow protects players, it also places a financial burden on teams, particularly those with less liquid cash. Some owners might be more hesitant to offer large, fully guaranteed contracts due to the immediate cash outlay required for escrow.
• Examples:
  The Deshaun Watson contract with the Browns, a highly guaranteed deal, highlighted the escrow requirement and its potential impact on other teams.
• Evolution:
  The concept of fully guaranteed contracts in the NFL is evolving. While not mandated by the collective bargaining agreement (CBA), players are increasingly negotiating for more guaranteed money, pushing the boundaries of the escrow rules.

Thanks.

Even though no specific details are provided re: the amount, I'm pretty confident this means I'm wrong. If the "specific amount" was 100%, I'm sure it would have said that here.

Maybe there's no detail here because it's complicated with different %ages depending on how far into the future it is?

[steeler_fan_in_t.o.]

Thanks.

Even though no specific details are provided re: the amount, I'm pretty confident this means I'm wrong. If the "specific amount" was 100%, I'm sure it would have said that here.

Maybe there's no detail here because it's complicated with different %ages depending on how far into the future it is?

The amount is an amount that will reach each guaranteed payment at the date it is due, after interest is calculated. As the post says, it guarantees the guaranteed money which is an amount invested today which will pay out when needed.

[Northern_Blitz]

The radio hosts defending this with the “they’re 1-10 without him” argument are missing the point. They’re so dependent on TJ because they’ve botched the QB position so badly and are forced to compete in low-scoring rock fights. That argument is an indictment on team building.

If the goal is to pick the next franchise QB next year, this was a bad move, TJ could have fetched more draft capital to possibly move up to #1. If they’re going to keep going all in until TJ and Cam are done, different story.

It's not for lack of trying with QB.

It's that there is way more demand than supply.

I'd be more upset if they just had Kenny play out his rookie deal when it was clear he wasn't an NFL starter. I think they've generally taken reasonable steps since then.

I would have liked to have seen them try to go back to Fields at the end of last year and then make a bigger push to bring him back. But I don't think he's a long term starter either.