On February 29, 2016 ESPN’s Adam Schefter reported that the New England Patriots and Tom Brady extended his contract through the 2019 season. This blog will look at the salary cap ramifications of Brady’s extension. I plan to update this as more details become known.
February 29, 2016 7:55 PM Update – Answered a Twitter question asking my prediction of the deal parameters.
March 1, 2016 6:30 AM Update – Answered the question of whether the Pats could create $15 million in cap space with this extension like they did in 2013. Added a screenshot of a possible option bonus extension.
Tom Brady’s 2016 cap number of $15,000,000 consisted of
* $9 million salary
* $6 million proration of his 2013 signing bonus
His 2017 cap number of $16,000,000 consisted of
* $10 million salary
* $6 million proration of his 2013 signing bonus
* $500,000 (16 46-man active roster bonuses times $31,250)
As I write this, the only known details about Brady’s extension is the length.
The below shows possible deals. While Brady’s minimum salary in 2016 is $985,000 and in 2017 is $1,000,000 used $1 million as his salary in 2016 and $2 million in 2017 in order to match the salary structure of his 2013 deal.
The first presumes that Brady received a $20 million signing bonus.
Such a deal would lower both his 2016 and 2017 cap numbers by $3 million.
The next deal presumes that Brady received a $25 million signing bonus.
Such a deal would lower both his 2016 and 2017 cap numbers by $1.75 million.
The next deal presumes that Brady received a $30 million signing bonus.
Such a deal would lower both his 2016 and 2017 cap numbers by $500,000.
The next deal presumes that Brady received a $32 million signing bonus.
Such a deal would leave his 2016 and 2017 cap numbers the same. So we have established that if the one of the goals of the Brady’s extension was to create cap space the largest signing bonus he could have received in 2016 is $32 million
Another possible extension structure is a 2016 signing bonus with a 2017 option bonus.
Some frequently asked questions about the salary cap implications of Brady’s extension
Q: Exactly how much cap space did the extension create?
A: Do not know. Can’t answer the question until more details (2016 signing bonus, 2016 salary, 2016 roster bonus, if any) are reported. Sorry.
Q: Was this extension done to help extend Dont’a Hightower?
A: Doubtful since any 2016 extension would have lowered Hightower’s 2016 cap number of $7.751 million.
Q: Was this extension done to help extend Chandler Jones?
A: Doubtful since any 2016 extension would have lowered Chandler Jones’ 2016 cap number of $7.799 million.
Q: Was this extension done to help extend Jamie Collins?
A: Possible since any 2016 extension would have increased Jamie Collins’ 2016 cap number of $1,196,683.
Q: Was this extension done to help extend Malcolm Butler?
A: Very possible since any 2016 extension would have increased Butler’ 2016 cap number of $600,000.
Q: What is Jimmy Garoppolo’s salary cap status?
A: He is signed through the 2017 season.
His 2016 cap number is $950,154.
He is due $736,718 in cash from the Patriots this season.
His 2017 cap number is $1,108,513.
He is due $820,077 in cash from the Patriots in 2017.
Q: What would be the salary cap consequences of a Garoppolo trade?
A: If he is traded before June 2, his 2016 dead money would be $426,872 and there would be no dead money in 2017. If Jimmy Garoppolo was traded before June 2, Pats will lose $1,718 in cap space as a player with a $525,000 salary would take his place in the Top 51 list. If he is traded after June 1, his 2016 dead money and his 2017 dead money would both be $213,436. If Jimmy Garoppolo was traded after June 1, Pats will create $86,718 in cap space in 2016 as a player with a $600,000 salary would take his place in the Top 51 list. If Jimmy Garoppolo was traded after June 1, Pats will create $820,077 in cap space in 2017.
Q: Could the Patriots ask a team to draft a player in the first round and then trade drafted player to the Patriots for Jimmy Garoppolo? No. Quoting the CBA0″ A Club may not assign the exclusive negotiating rights to a Drafted Rookie to another Club if such new Club does not have Room under its Year-One Rookie Allocation equal to at least the original Year-One Minimum Allotment for the player multiplied by the Total Rookie Compensation Pool. The New Club will not receive any additional Room in its Year-One Rookie Allocation or Total Rookie Allocation”. The Pats would not have room in its Rookie Pool for such a player and there is no way to create room.
Q: How does the Brady extension impact Malcolm Butler?
A: The Patriots are now able to use the franchise tag on Malcolm Butler in 2018. If Brady, Garoppolo and Butler were all UFAs in 2018, it would be very likely that the Patriots would use the franchise tag on one of the two quarterbacks.
Q: What teammates of Brady benefit from his extension?
A: The increased cap space makes it easier for the Patriots to not release a Brandon Lafell or a Marcus Cannon/ or ask Danny Amendola to redo his deal.
Q: Where did Tom Brady’s prior cap number of $15 million rank among quarterbacks?
A: 19th. He may stay at 19 as RGIII is released and Peyton Manning retires.
Q: Where did Tom Brady’s prior cash intake of $9 million rank among quarterbacks?
A: 20th. He should move up the list.
Q: Were you surprised by this extension?
A: Thought that it was going to happen last year when Brady’s salary was $8 million.
Q: What are you looking to see in the extension?
A: Curious if Brady will have 46-man active roster bonuses in his contract. Brady, Scott Chandler, and Matt Slater are the only Patriots veterans who do not have 46-man active roster bonuses
Q: How does this extension help Brady if he is suspended?
A: It lowers his possible exposure. Players are paid weekly. If suspended for 4 games at a 9 million salary Brady would have lost $2,117,647 in salary. If suspended for 4 games at a 1 million salary, Brady would lose $235,924.
Q: How much cap space do the Patriots now have?
A: As of 4:30PM February 29 $ 13,638,036. I expect that number to increase as a result of the Brady’s extension. That number does include the cap savings from Mayo’s retirement.
Added at 7:55 PM February 29, 2016
Q: What is your predictions for the deal parameters?
A: Signing Bonus between 20 and 30 million. 2016 and 2017 salaries fully guaranteed. Cap savings between 500,000 and $3 million. If I had to predict one number, it would be $3 million.
Added at 6:30 AM March 1, 2016
Q: The last time Brady extended his contract the Patriots created $15 million in cap space over two years. Is that possible this time?
A: No. Last time Brady was due $30 million in cash over the two-year period. This time $19m. In order to create the $15 million in cap space savings this time Brady would have to agree to lower his total cash intake for 2016 and 2017 to $4 million.
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Posted Under: Individual Salary Cap
Tags: tom brady