Week 1 Free Agency Thoughts

It has only been a week since the start of the NFL’s version of the free market and already many teams have reached their pinnacle in spending for the season. Through the first week of free agency, league wide spending is approx. $2.610B. Of the $2.610B in spending, approx. $1.481B counts towards total guarantees. As a disclaimer, these are fluid numbers based on contract data retrieved by Overthecap and excludes extensions, extensions via trades, and franchise/transition tags. The graph below breaks down league spending from all 32 teams by total contract value and total guarantees.

The top 5 teams that have currently spent the most in total contract value are the Dolphins, Saints, Cowboys, Titans, and Lions. The Dolphins key decision maker, Chris Grier, has not shied away from leaving his print on the roster. After trading away several foundational pieces last season, Grier has acquired 9 new players through free agency and will have 14 draft picks in the upcoming draft. Much of his talent evaluation skills and decision-making ability will be judged over the next two years.

Looking at the Saints free agency spending, the drivers here are the Brees and Peat deals that total $107M. While both players were on the roster last year, Overthecap is categorizing these as free agent deals versus extensions as their previous deals expired. Regarding Peat’s new deal, he’s now the 3rd highest paid Left Guard by APY and has the highest in total guarantees in the LG market. The deal also includes a favorable structure for Peat as his 3rd year salary vests into full guarantees in the 2nd year of his deal. Essentially, Peat gets $23M of the $57.5M guaranteed at signing. In 2021, if Peat is on the Saints roster on March 20th, he will be guaranteed an additional $10.850M for 2022. That being said, Peat is pretty much a lock to be with the Saints until at least 2022.

Thoughts on Amari Cooper

Heading into free agency, there was much anticipation on how the Dallas Cowboys would approach negotiations with their key free agents. Shortly after applying the exclusive franchise tag on Dak Prescott, the Cowboys were able to reach an agreement with Amari Cooper on a 5 year, $100M deal, making him the second highest paid WR behind Julio Jones. However, the team can easily move on from Cooper after two years. The deal is structured in a way where Cooper gets $40M fully guaranteed at signing, paid over the first two years, with an additional $20M serving as injury protection. In the third year of the deal, 2022, if Cooper is on the roster on the 5th day of the league year, the $20M injury protection vests to a full guarantee. While this is a nice deal for Cooper, a player with his leverage typically sees a more favorable structure. At minimum, Cooper should have gotten a portion of his 3rd year salary guaranteed at signing. Instead, it’s essentially a 2 year, $40M deal and then a “we’ll see” situation. An explanation for why Cooper might have decided to accept the deal is that he weighed other factors. He’s playing in a state with no income tax and in an offense that has stability at the QB position. There were reports that the Washington Redskins had shown interest in Cooper and even if they were ready to offer a better structure, perhaps Cooper valued stability more than making a couple extra million. Every player is going to have a list of priorities when entering the open market and it’s plausible to think Cooper’s football earnings of $36M to date enabled him to consider other factors.

Thoughts on DeForest Buckner

One move that seems to have fallen under the radar in the last week is the DeForest Buckner trade. Heading into free agency, the 49ers had a decision to make on Arik Armstead. Armstead, who came into the league a year prior to Buckner, played out his 5th year team option and was scheduled to be a free agent. On the first day of the NFL’s legal tampering window, the team rewarded Armstead with a 5 year $85M contract. With already so much invested in Dee Ford and the future spending on Nick Bosa, the 49ers likely knew it would be difficult to keep Buckner. However, the team could have gotten one more year out of Buckner under the 5th year option, similar to what they did with Armstead. Instead, Buckner was able to leverage a position strong enough to be traded for a first-round pick and get an extension that makes him the second highest paid interior defensive lineman and tied for 3rd highest defensive player, per the APY metric. It was a true win-win for both player and team. The 49ers got a first-round pick for a player they wouldn’t have been able to afford after this year while Buckner doesn’t have to incur an additional year of injury risk to get a top of the market deal. The Colts also get the dominant interior disrupter that is coveted in the league.  

Thoughts on Kenyan Drake

Another interesting story over the last week relates to Kenyan Drake’s signing of the transition tag. On March 16th the Arizona Cardinals applied the transition tag on running back, Kenyan Drake, with the ability to rescind at any time before he signed the tag. The transition tag works similar to the franchise tag in that it ties a player to the team for an additional year. The transition tag value, however, is less than the exclusive and non-exclusive tags. Furthermore, another team can make an offer-sheet to the player and the incumbent team would have the option to match. If the incumbent team doesn’t match, the player can sign with the new team and the incumbent team doesn’t receive draft compensation. So long story short, the Cardinals were indirectly allowing Drake to test the market on a long-term deal. What’s interesting, and a point that Mike Florio of PFT raised in his podcast, is that days after the transition tag was applied on Drake, the running back market saw Todd Gurley agree to a $6M deal with the Falcons and Melvin Gordon sign a 2 year deal, averaging $8M per year. The transition tag for Drake is $8.483M. With Gurley and Gordon being more accomplished RBs than Drake, the Cardinals could have rescinded the tag, pointing to the value being too high for him. Drake was smart enough to realize the deal he had was solid and signed his tag the day after the Gurley and Gordon deals were announced. 

Thoughts on Workout Bonuses

                        Teams often negotiate workout bonuses in player contracts to entice players to workout at team facilities during the off-season. Small market teams like the Packers, Bengals, Panthers, and Jaguars will use this structure and will payout if a player participates in 90% (negotiable) of the off-season program.  Given the current conditions in society, the question arises on whether players will be able to recoup their workout bonuses if the impact of COVID-19 crisis continues and team facilities remain closed through the off-season. Assuming facilities remain closed, there’s a chance that workout bonuses wouldn’t be paid out as many payouts are contingent on there being a workout program (some players do have workout bonuses protected by guaranteed language). Assuming facilities open, but cuts into the days or weeks of the offseason program, the question will be whether teams would have good-faith and allow players to earn the full bonus if they meet the participation % for the days the off-season programs were held. Another proposition that players and agents may want to consider is to request teams to allow the player to recoup their lost workout bonuses through per-game roster bonuses throughout the season. To put some perspective on how much a player might lose if things don’t get better, Za’Darius Smith’s off-season workout bonus is $750K. It’ll be very interesting to monitor how the league will handle this situation and whether the union will need to get involved.

Thoughts on Market Growth

Per Jason Fitzgerald’s recent article, the amount of massive money deals seem down this year. Last year, there were 30 non-QBs who signed contracts that averaged at least $10M/year and 17 non-QBs who signed for at least $13M/year. This year the numbers are 27 and 11. One reason for this could be the increased use of franchise/transition tags by teams. Ten teams have applied the franchise tag this year, tied for most since 2016. In 2017, 7 players were tagged and in 2018 and 2019 6 players were given the tag. Furthermore, last year, the top of the safety and linebacker market exploded when Landon Collins and CJ Mosley reset their markets respectively. This year, a small correction has taken place in the stagnant cornerback and tight end market after Darius Slay and Austin Hooper reset their respective markets.  In regard to total spending, the below table builds off the first graph and illustrates free agent spending this year vs years in the past. Please note that these figures are based on FA spending from February-April. 2020 is asterisked as it will obviously continue to grow until April.

Looking at the Next Stage of NFL Free Agency

Free agency is just about a full week in now and this is about the time that we get the first market reset as the money dries up and teams and agents have to re-evaluate their plan for the upcoming season. Usually most free agent periods have at least three phases. The first phase is the mad rush which sees the biggest players signed to massive contracts in the first 48-72 hours of free agency. Phase II then begins with the mid tier players taking center stage, often getting pretty lucrative terms, and then Phase III where the dynamic changes and more and more bargains are found for teams. 

This has been an odd free agency, I guess in part due to the Covid-19 outbreak, where I kind of feel that Phase I barely existed and Phase II was really the start leading for us to immediately jump into Phase III really a few days ago. The amount of massive money deals seems way down. Perhaps that is because more teams used the franchise tag this year, but last year there were 30 non-Qb’s who by this time signed big contracts that averaged at least $10 million a season and 17 making at least $13 million a year. This year the numbers are 27 and just 11.

Contract years are also way down. Last year we had 16 players who made $10 million or more a year that signed for four or more seasons. This year its 7 which means the eye popping numbers we often see in free agency (even if they are just fluff) simply did not exist. Most teams are opting for 2 and 3 year contracts and while the guarantees are high relative to the contract size they are getting some better cash flows on this contracts as it generally costs a team far less over three seasons to reach a $10M APY on a three year deal than on a five year one.

Of course this could be player driven as well with hope to come back into free agency in a few years when the cap is expected to rise. For some that can work out well. For others probably no so much. Those angling for that probably should be doing one or two year contracts as three years in the NFL is an eternity.

Thus far I think this virus outbreak has seemed to change the dynamic of some things related to free agency which may have made it more difficult for some to work with scouts and positional coaches to “work the room” a bit more in regard to contracts. Maybe that has led to some added short term contracts though I think it has impacted those on the lower salary spectrum more than the mid level guys.

Now with the Phase III in full swing there is probably a good deal of soul searching that has to go on. There are still a number of big name free agents out there, the biggest being Jadeveon Clowney. Other names include Robby Anderson, Jason Peters, Everson Griffen, Damon Harrison, Jimmy Smith, Logan Ryan, Dontari Poe, and Ndamukong Suh among others. There are also still a good number of solid, viable contributors who were hoping to get a small piece of the pie but may have to now settle for an even smaller one.

While its not out of the realm of possibility for a team to still make a massive offer for one of the big names the odds are generally against it. Players planning for contracts worth over $25M in guarantees on annual values in excess of $10 million a season will likely need to decide if they want to hold out hope for the money, take a one year team friendly contract and hope to hit it the following year in free agency, or to take a longer term deal that may be 60-75% of what they hoped to get in free agency.

The same holds true for the lower level players who may now be staring at minimum salary contracts as a way to continue their careers and get opportunities for 2021. This group of both expensive and lower cost talent often wind up being the biggest bargains in free agency.

It can certainly be a nerve wracking experience. There are various things that come into play now that did not exist a few weeks ago. Going into the season the average cap space in the NFL was around $40 million per team. It’s now under $20 million per team. Teams have spent millions on other players and may be cash strapped as well as cap strapped.

Many depth charts are filling up and team needs are much less than they were last week. Teams also begin to focus more on the draft at this stage. Why sign a $5 million contract with a third tier receiver or lock into an Anderson at $15 million a year when the draft may be full of receivers that can fill a void. If you miss in the draft odds are there is still going to be a veteran sitting around to sign so teams do not need to rush into anything at this point.

The compensatory process also lasts for a few months. Based on Nicks current work there are 15 teams currently on pace to receive at least one compensatory pick. 10 of those teams have at least one 3rd or 4th round projected compensatory pick. Those teams risk picks with any signing and often wait until the compensatory signing period expires before they go back into free agency.

The NFL is also slowly becoming a trading league. We discussed this possibility in our book a few years ago and its becoming more and more of a thing. It is often cheaper for a team to trade a late pick for someone who had the majority of their contractual guarantee paid by another team than to sign a player for millions, especially if that player may cost the team a comp pick to boot.

Overall the leverage almost completely goes to the team side at this stage often making for some unique contracts and landing spots that people like myself will generally praise as some of the best deals of the offseason even though they are often just a byproduct of circumstance and in some cases pure luck.

For those fans who have been disappointed with free agency so far it is far from over and you may be surprised to see who you wind up with out of the blue in the next few weeks. So let’s watch along and see how it all plays out.

A look at the NFL Tight End Market and Potential Market Movers

Per my recent article on the NFL Cornerback Market, several NFL positional groups have experienced robust growth over the last 5 years. This growth can be attributed to star players maximizing their leverage and the 31.35% rise in salary cap since 2015.  The top 5 of the QB market has grown 57.96%, the safety market has experienced a 51.34% market boom, linebackers at 48.74%, and edge rushers at 40.34%.  

However, there are also positional groups that haven’t experienced the same modicum of success. The stagnant cornerback market was highlighted in my article and the devaluation of running backs has been discussed for several years. Another positional group experiencing sluggish growth is tight end. Since 2015, the top of the tight end market has only grown 6.91%, the lowest growth rate of all positional groups, excluding special teams. Below is a graph illustrating all the positions that haven’t kept with up with salary cap growth.

tight end salary growth

Tight End Market

In looking at the top of the tight end market, 3 of the 5 highest APY values have remained flat since 2016. This includes Jimmy Graham’s $10M APY, Travis Kelce’s $9.368M APY, and Jordan Reed’s $9.35M APY.  In fact, Graham’s $10M APY has been the benchmark for the TE Market since 2014. No other positional group has been close to having the same benchmark for such an extended period. Graham first became the highest paid TE when the Saints extended him to a 4 Year, $40M extension in 2014, eclipsing Rob Gronkowski’s 6 Year, $54M extension from 2012. Graham went on to play the entire deal with the Saints and Seahawks and became a free agent in 2018. The Packers then signed him to a 3 Year, $30M extension and Graham quickly regained the title of highest paid TE with the same $10M APY. The tables below illustrate the top 5 of the TE market by APY and Guarantees.

top 5 tight end contracts
tight end guaranteed money

Other noteworthy deals since Graham’s extension include Greg Olsen’s 2 Year, $17.1M extension with $12.115M guaranteed, Kyle Rudolph’s 5 Year, $36.5M extension with $16.025M guaranteed, and Trey Burton’s 4 Year, $32M FA deal with $22M guaranteed. While Burton’s deal didn’t crack the top 5 by APY, he eclipsed Jordan Reed’s fully guaranteed figure by $4M, setting the new benchmark in Fully Guaranteed at $18M.

Looking ahead, there are 3 players who I believe will uplift the market between now and the upcoming off-season.

Market Movers

  1. Travis Kelce

            The Kansas City Chiefs have had great success with tight ends over the last two decades. From 1997-2008, the Chiefs saw great production from Hall of Fame Tight End, Tony Gonzalez. Several years later, the Chiefs selected Travis Kelce in the 3rd round of the 2013 draft. In his first 33 regular season games, Kelce recorded 1,737 receiving yards and 10 Touchdowns. This led the Chiefs to extend him in 2016 to a 5 Year, $46.8M extension, making him the 2nd highest paid TE at time of signing. Since his extension, Kelce has continued to prove his worth. The table below illustrates his production among other top ranked TEs since 2016.

nfl tight end stats

Further illustrating Kelce’s value, the table below compares his production to WRs since 2016.  Kelce ranks 10th in Yards/G, 9th in TD/G, 11th in Targets/G, and 9th in Receptions/G.

kelce receiving stats

While Kelce will have 2 years remaining on his deal after this season, his level of production has given him the leverage to approach the team for a new deal. The Chiefs have also shown good faith in extending players with multiple years remaining as they extended Mitchell Schwartz this past off season. Regarding a value for Kelce, his representatives should make the case for high producing TEs to be paid like a low-end Tier 1/ high-end Tier 2 WR. This should put him in the $13M-14.5M APY range. Assuming the salary cap for 2020 is set around $200M, an APY between $13M-$14.5M would be between 6.5-7.25 percent of the salary cap. Kelce’s 2016 extension was 6% of the salary cap at time of signing. The highest paid TE by APY as % of signing was Rob Gronkowski and Jimmy Graham at 7.5%. Kelce’s figure should be in that ballpark.

2. Austin Hooper

The Falcons drafted Austin Hooper in the 3rd round of the 2016 NFL Draft. Coming off a Pro Bowl season last year, Hooper’s receiving totals in his first 9 games this season puts him on pace for over 1,000 yards. Hooper is a prime example of a player maximizing his future earnings by producing at the right time as he will be an Unrestricted Free Agent after this season.  It’s doubtful the Falcons will retain him as they will have major cap issues next year, as highlighted in Zack Moore’s recent article. However, Hooper will have many buyers on the open market and should easily surpass all the current benchmarks in the TE market.

3. George Kittle

George Kittle was a great find for the 49ers in the 5th round of the 2017 draft. Since entering the league, Kittle has racked up over 2400 receiving yards, ranking 3rd in TEs. His value to the offense is further validated by his 256 targets since 2017. The next closest over the same time period is Marquise Goodwin at 169 targets. While Kittle has one more year on his deal after this season, the 49ers should do an extension early as he is the focal point in their pass game. Kittle should also eclipse all the current benchmarks in the TE market.

Other Candidates

Other candidates who could uplift the TE Market include Eric Ebron and Evan Engram. After posting career highs in receiving yards and touchdowns last season, Ebron has struggled to find the same level of production this year. However, his first-round pedigree and upside will make him an attractive option for several teams during 2020 free agency. Regarding Engram, the Giants will need to decide on whether to exercise his 5th year option by the first week of May 2020. Thereafter, he’ll be eligible to sign an extension.

Michael Thomas’ Contract Negotiations: How the Franchise Tag and Rookie Wage Scale are Garbage

Michael Thomas and the New Orleans Saints are about four million apart on average per year according to Jeff Duncan from NOLA.com. Thomas and his representation team led by Andrew Kessler of Athletes First are asking for $22 million per year, while the Saints are offering $18 million for the wide receiver going into his fourth season of a second round rookie contract that sees him set to earn just $1.15 million in salary this upcoming season.

Continue reading Michael Thomas’ Contract Negotiations: How the Franchise Tag and Rookie Wage Scale are Garbage »

Front Office Scheme Bolstered by Ability to Trade Compensatory Picks

On Friday, February 23 the NFL released its annual list of compensatory picks for the draft on April 26th (see here). Thirty-two draft picks were awarded to fifteen teams, with the Bengals, Cowboys, Packers and Raiders leading the way with four each. In a nutshell, teams receive a compensatory draft pick for each of their unrestricted free agents signed away by another team in a given offseason, minus the amount of unrestricted free agents they sign from other teams, up to a maximum of four. The teams that are awarded the picks, as well as the round in which the picks fall, are determined by the NFL using a “secret formula.” (For a detailed overview see Over The Cap: Comp Picks Explained). Full 2018 list:

2018 NFL Compensatory Draft Picks

Cincinnati4
Dallas4
Green Bay4
Oakland4
Arizona3
Houston3
Minnesota2
Atlanta1
Baltimore1
Denver1
Kansas City1
LA Chargers1
New England1
New York Giants1
Tampa Bay1

With the introduction of compensatory draft picks in the 1993 Collective Bargaining Agreement, the NFL sought to provide relief for teams that lost quality players in free agency. The picks serve as a consolation prize for a team potentially losing a key player within their organization. As with any new provision in a CBA, there are always loopholes to be exploited (and they’re usually first discovered by the Patriots). The advent of the compensatory pick was no different, and many tricks of the trade have since come to the surface.

One such example may have played a role in the Packers’ early dismissal of Martellus Bennett this past season. Putting his struggles on the field aside, Bennett was projected to count against the Packers’ compensatory pick considerations in this upcoming draft. However, one stipulation of the compensatory pick determination dictates that if a team cuts a player before Week 10 that player won’t count against their picks (it’s an added bonus when someone claims the player off waivers and bears the full burden of their contract, which is what the Patriots did with Bennett).

Beginning with the 2017 draft, the NFL owners voted to allow compensatory draft picks to be traded. This update provided further incentive for teams to stockpile comp picks, and it will likely lead to a strong uptick in another popular front office maneuver involving the comp pick formula. With 2018 free agency in full swing, prepare to see more contracts that include team options on the back end, and here’s why:

If a team decides they no longer want a player that has years remaining on his contract, they must cut him before the first day of the league year (March 14th for 2018). If a player is cut, thereby terminating his contract before its natural end, the player cannot count towards a team’s compensatory draft pick award when another team signs him. On the other hand, if a team no longer wants a player whose contract includes a club option for the upcoming season, declining to pick up the option is not considered terminating a contract before its natural end.

Although the result of a cut and declined option is the same; the team foregoes their exclusive right to retain a player, one may result in the team receiving a draft pick while the other cannot. This trick was already enticing to clubs prior to the rule change in 2017, and now that these picks may be traded we should expect to see it even more often. The traditional club option includes an option bonus; a lump sum of money treated as a signing bonus, if the team picks it up then the player has the option bonus amount prorated over the remaining years on the contract. These options were usually attached to the later years of a contract, four or five years after its execution. Recently, teams have begun including club options in contracts that are not tied to an option bonus, but are merely an agreement that the club has the right to terminate the players’ contract at the end of a season without it being considered a true cut. These “options” provide a lot of flexibility for the franchise at essentially no cost, and teams like the Ravens have begun including them after each season of a contract (more on this later).

A prime example of a club option where the team planned for a compensatory pick was Darrelle Revis’ contract with the Patriots. New England signed Revis in the 2014 offseason for 2 years, $32 million. However, here’s the contract breakdown:

($10 million total signing bonus)

Year 1 – 2014

2014 P5 Base Salary of $1.5 million fully guaranteed

2014 Per-game Roster Bonus of $500,000 (total of $500,000 over 16 games)

2014 Signing bonus of $5 million fully guaranteed

Year 2 – 2015 (Club Option)

2015 P5 Base Salary of $7.5 million

2015 Roster Bonus $12 million

2015 Per-game Roster Bonus of $500,000 (total of $500,000 over 16 games)

2015 Signing bonus of $5 million fully guaranteed

The Patriots effectively got Revis, considered by many to be the best cornerback in the NFL, for one-year, $12 million ($10 million signing bonus, $1.5 million 2014 P5 base salary, $500,000 per-game roster bonus for 2014), and won a Super Bowl in the process. The $20 million price tag for exercising the club option on Revis in 2015 ($7.5 million 2015 P5, $12 million offseason Roster Bonus, $500,000 per-game roster bonus for 2015) was presumably not going to be picked up, especially by the Patriots. Revis instead signed a monster deal with the New York Jets, and the Patriots received the second highest compensatory pick in the 2016 NFL draft, the 96th overall pick in the 3rd round.

Although perhaps not the primary reason for including the option, another example of this practice occurred in the 2017 offseason, and it certainly paid off in a big way. Prior to the start of the 2016 season the Denver Broncos signed Russell Okung (who was acting as his own agent which cannot be ignored) to a 5-year / $53 million-dollar contract. However, the contract included a club option after 2016, and the details left virtually zero incentive for the Broncos to retain Okung after one year. Take a look at the breakdown of Okung’s deal:

Year 1 – 2016

P5 Base Salary: $2 million non-guaranteed

Roster Bonus: $2 million non-guaranteed

Rehab Bonus: $1 million non-guaranteed (Okung had offseason shoulder surgery)

Okung performed adequately in 2016, but anything short of dropping back under center and slinging a few TD passes for the QB desperate Broncos pretty much assured that his club option would not be picked up. The team option ($1 million) going into Year 2, if exercised, provided Okung the following:

Year 2 – 2017

2017 P5 Base Salary of $2 million fully guaranteed

2017 Roster Bonus of $8 million fully guaranteed

2018 P5 Base Salary of $9.5 million fully guaranteed

Had the Broncos exercised Okung’s option they would have been on the hook for $19.5 million dollars fully guaranteed, after not guaranteeing him a penny in Year 1. This was never going to happen, but when Okung signed with the LA Chargers before the 2017 season (4 years / $53 million) his final contribution to Denver came in the form of the third highest compensatory pick in the entire 2018 draft. Denver selected Isaac Yiadom with the 99th overall selection in the 3rd round of 2018 thanks to Okung and a club option that all but ensured he was gone after a year. This scheme can yield tremendous returns for teams, and there is almost no downside. One can only imagine the impact on contract construction across the league now that these compensatory picks are eligible for trade, thus driving up their value.

Compensatory pick scheming can also backfire, such as a team insulting a player with a tender offer, where it is clear the only reason they extended the offer was in hopes of receiving a comp pick. This was the case with the Patriots’ handling of LeGarrette Blount. In the 2017 offseason, the Patriots extended a tender offer to Blount for one-year, $1.1 million dollars. The offer came on the last day that NFL teams would receive a comp pick if they lost a player to free agency. The Patriots had seven other running backs on their roster and had previously shown no interest in retaining Blount. New England was taking a gamble that someone else would top their offer, with the risk of just over one million dollars worth taking. Sure enough, the Eagles stepped in and beat New England’s offer, leaving the Patriots with the right to match it or potentially receive a comp pick. According to our comp pick expert, Nick Korte, Blount was just outside of the 32-compensatory pick limit, and will award the Patriots nothing. Blount certainly has the last laugh for now after steamrolling New England in the Super Bowl to the tune of 90 yards and a touchdown on just 14 carries.

Now, you may be thinking there is no way a late-round draft pick could possibly make up for the loss of a good player. Well, as previously mentioned, the Patriots are known for their excellence in exploiting all that the CBA has to offer. New England used a comp pick in 2000 when they drafted a QB prospect out of Michigan by the name of Tom Brady in the 6th Round with the 199th overall (compensatory) pick. The list of notable compensatory pick selections is a long one, with franchise cornerstone players including:

Mike Vrabel – Pittsburgh Steelers, Round 3, Pick No. 91 overall, 1997

Matt Hasselbeck – Green Bay Packers, Round 6, Pick No. 187 overall, 1998

Marques Colston – New Orleans Saints, Round 7, Pick No. 252 overall, 2006

La’Roi Glover – Oakland Raiders, Round 5, Pick No. 166 overall, 1996

Hines Ward – Pittsburgh Steelers, Round 3, Pick No. 92 overall, 1998

Josh Sitton – Green Bay Packers, Round 4, Pick No. 135 overall, 2008

Antoine Bethea – Indianapolis Colts, Round 6, Pick No. 207 overall, 2006

Pierre Garcon – Indianapolis Colts, Round 6, Pick No. 205 overall, 2008

Dak Prescott – Dallas Cowboys, Round 4, Pick No. 135 overall, 2016

David Tyree – New York Giants, Round 6, Pick No. 211 overall, 2003

Malcolm Smith – Seattle Seahawks, Round 7, Pick No. 242 overall, 2011

Ahmad Bradshaw – New York Giants, Round 7, Pick No. 250 overall, 2007

Super Bowl MVPs, perennial Pro-Bowlers, and the greatest Quarterback that ever lived are just some of the compensatory picks from years past. Certain NFL teams prioritize acquiring compensatory picks far more than others, with the Ravens topping the all-time list with 49 (roughly two per draft since 1994), and the Saints bringing up the rear with just 10. Here is the full list:

SUMMARY OF COMPENSATORY DRAFT PICKS, 1994-2018

Baltimore49
Green Bay42
Dallas41
New England35
Los Angeles Rams33
Cincinnati32
Pittsburgh32
Philadelphia30
San Francisco30
Tennessee30
Seattle29
Buffalo28
Kansas City24
New York Giants24
Arizona22
Indianapolis22
Denver21
Detroit21
Oakland21
LA Chargers20
Miami20
Atlanta19
Jacksonville19
Minnesota19
Tampa Bay19
Carolina17
Chicago17
Houston15
New York Jets14
Cleveland13
Washington12
New Orleans10

Contract Construction

Player agents would be wise to leverage the possibility of their client awarding the team a comp pick during contract negotiations, considering the team will likely be the one to introduce the idea of a club option. Draft picks have a ton of value, this was clearly evidenced by the Browns who last year paid $16 Million for a 2nd Round Pick. The Ravens, who love to stick as many club options into their contracts as possible, included a club option in every year of Brandon Carr’s contract. The ability to decide at the end of each season whether a player is worth retaining, or whether you would prefer to let him hit the open market and potentially receive a draft pick in the process, is a very nice position to be in.

Here is the list of players who had club options built into their contracts for the upcoming 2018 season:

2018

Brandon Carr CB Baltimore Ravens – $7,000,000 (Exercised)

Adam “Pacman” Jones CB Cincinnati Bengals – $6,447,918 (Declined)

Austin Howard RT Baltimore Ravens – $5,000,000 (Declined)

Torrey Smith WR Philadelphia Eagles – $5,000,000 (Traded)

Alan Branch DT New England Patriots – $4,550,000 (Declined)

Elvis Dumervil OLB San Francisco 49ers – $4, 250,000 (Declined)

Cordarrelle Patterson WR Oakland Raiders – $3,250,000 (Traded)

Josh Robinson CB Tampa Bay Buccaneers – $1,875,000 (Exercised)

Here are some notable players who have a club option in their contract for the 2019 season (with 2019 Salary Cap Hit) :

2019

Jason Peters    LT       Philadelphia Eagles     $10,666,668

Pierre Garcon  WR      San Francisco 49ers    $8,400,000

Menelik Watson RT    Denver Broncos          $7,458,334

Brandon Carr  CB       Baltimore Ravens       $7,000,000

Jerick McKinnon RB  San Francisco 49ers    $6,000,000

Kyle Juszczyk FB       San Francisco 49ers    $5,950,000

Recent Signings

It should be no surprise that some of the biggest contracts signed so far in free agency (excluding Quarterbacks), are full of club options:

Andrew Norwell G Jacksonville Jaguars 5 yrs/$66.5 million – Club Option 2020, 2021, 2022

Malcolm Butler CB Tennessee Titans 5 yrs/$61.25 million – Club Option 2020, 2021, 2022

Weston Richburg C San Francisco 49ers 5 yrs/$47.5 million – Club Option 2021, 2022

Anthony Hitchens LB Kansas City Chiefs 5 yrs/$45 million – Club Option 2020, 2021, 2022

Nigel Bradham LB Philadelphia Eagles 5 yrs/$40 million – Club Option 2020, 2021, 2022

Jerick McKinnon RB San Francisco 49ers 4yrs/$30 million – Club Option 2019, 2020, 2021

Most of these new club options do NOT include an option bonus, thereby giving all the benefit to the team while the player must enter each offseason with questions about their future. It is quite a luxury when managing a roster headed into the offseason. Additionally, having a stash of compensatory picks during the draft leads to plenty of maneuvering and creativity. Cincinnati, Green Bay, Oakland and Arizona – 4 of the top 5 teams in terms of 2018 compensatory pick allotment – all made trades in the first round of the NFL Draft (Green Bay and Oakland made multiple). With more ammunition in their arsenal, and with the new ability to use compensatory picks in draft day trades, these teams were very active throughout the draft. Whether or not the picks work out is a different story, but what is for certain is because of comp pick capital these teams were aggressive in landing their targeted guys in the draft at the moments they felt necessary.

With some teams carrying up to twelve total draft picks (Green Bay had eight standard picks and four compensatory picks), they can package these in trades to maneuver around the draft board, and ideally get the seven-to-eight guys they want most. In the case of the Packers, they traded back in the first round from 14 to 27 and secured a 2019 first-round pick from the Saints in the process. Green Bay then traded back down with the Seahawks to 18 to take Jaire Alexander from Louisville, sending Seattle their 3rd and 6th round picks and recouping a 7th rounder. They then traded a 4th and 5th round pick to move up to the 88th overall pick in the 3rd round and land Oren Burks from Vanderbilt. With all this maneuvering they still drafted eleven players. They traded away their 3rd, 4th, 5th and 6th round picks, but it hardly mattered considering they had two 4ths, a 5th and a 6th in compensatory picks. Whether or not the players pan out remains to be seen, but the Packers did not have to rely on taking the “Best Player Available,” they didn’t sit in their war room hoping a guy they liked would fall to them, they were able to go get the guys they wanted when they felt they needed to.

It is probably no coincidence that the top four teams on the all-time list of compensatory picks (Baltimore, Green Bay, Dallas, New England) happen to be four of the best teams in the NFL at producing home-grown talent. They simply have a higher likelihood of one or two of their draft picks working out when they bring eight-to-ten new draft picks into camp every year.

2018 AFC South Offseason Overview By Team

I will be posting a handy reference guide that brings together all of the relevant information here on Over The Cap for each division in the NFL as free agency begins next week. You’ll be able to see the cap room your favorite team has, an overview of some team needs, the draft picks they’re projected to have, and what those draft picks are projected to cost.

Continue reading 2018 AFC South Offseason Overview By Team »

2018 AFC North Offseason Overview By Team

I will be posting a handy reference guide that brings together all of the relevant information here on Over The Cap for each division in the NFL as free agency begins next week. You’ll be able to see the cap room your favorite team has, an overview of some team needs, the draft picks they’re projected to have, and what those draft picks are projected to cost.

Continue reading 2018 AFC North Offseason Overview By Team »