In the comes as no surprise category the Vikings will not pick up an $18 million option on star running back Adrian Peterson, making him a free agent in 2017. Peterson, who is a hall of fame running back, missed 13 games last season with an injury and only ran for 1.9 yards per carry. He will be 32 this year but carries enough name value to where a market should develop for him. Continue reading Vikings Decline Option on Adrian Peterson »
Every week during the season I’ll take a look back at the games and select three players who are entering important stages of their contract that could have hurt their upcoming negotiations with their play on gameday. In addition we will also look at one player signed in the offseason to a new contract that did not live up to his new contract.
Russell Okung– Okung is in his contract season and given some of the recent contracts doled out these last two weeks, likely playing for some big money. The Seahawks line looked overwhelmed by the Rams defensive front this week and Okung was credited with allowing two sacks and 5 hurries by Pro Football Focus. That isn’t the kind of performance needed to earn $10+ million on his new deal. Continue reading 2015 NFL Stock Down: Week 1 »
I read an article by Jimmy Kempski of the Philadelphia Voice the other day about Fletcher Cox and came across an interesting quote by former NFL executive Joe Banner regarding the franchise signings.
Why so many tag deals done today. Teams realize how much cap is about to go up. Time is on players side, today’s deals will look cheap soon.
— Joe Banner (@JoeBanner13) July 15, 2015
Teams signing deals today are doing so because the contracts will be looked upon as cheap down the line given the rising salary cap. I think that’s true to an extent when discussing extensions, but I think application across the board doesn’t really work and in most cases does not work for the franchise tag contracts.
According to Mike Florio of ProFootballTalk, Adrian Peterson has agreed to a new contract with the Vikings worth $44 million over the next three seasons. Florio further goes on to discuss potential escalators and de-escalators within the contract worth $4 million. While much is being made of the potential loss of about $2 million for Peterson, the basics of the contract are identical to the massive extension signed by Peterson in 2011. I’ll explain in more detail in the body of the post but in general Peterson will defer some money to 2017 in return for better timing of payments in 2016. Continue reading Adrian Peterson Restructures Contract With Vikings »
One question that is consistently coming up on my Twitter feed or in my email inbox is “how can the Cowboys afford to get Adrian Peterson”. Dallas has been linked to the Vikings running back for the last year and Peterson has made it very clear that he no longer wants to play in Minnesota. The Vikings hold his rights for the next three seasons and would likely trade him before releasing him, but can Dallas really fit him in their salary cap? Let’s explore.
The Peterson Contract
Peterson is set to earn $45 million in non-guaranteed salary over the next three years. That includes a $13 million salary in 2015. Normally I would have said nobody in the NFL would consider that salary and Peterson would need to take a stiff pay cut, but given decisions made by the Seahawks, Eagles, and Bills I can’t consider that to be the case anymore. Since the Vikings have shown a willingness to keep him at his current $13 million salary and Peterson is not moving off his stance for a trade it would seem likely that Peterson knows there is at least that much awaiting him from another team.
Here is what the current top end running backs are earning on their recent contracts:
|Player||Age||Year 1||Year 2||Year 3||Year 4||Year 5|
While none of these numbers are close to the $45 million currently in Peterson’s contract they probably give us an idea of what would be an acceptable contract for Peterson who will argue that he is the best of the group. My feeling is that given his age (30) all sides will look at this as a maximum three year contract with anything additional really just being there for cap purposes and/or to inflate a contract number.
Given the above chart I would expect Peterson to definitely not compromise at all on a two year total which will need to be at least $21.1 million to surpass McCoy, the way McCoy did Lynch. I would expect a three year total to surpass Lynch’s by a few million. My guess is this year’s salary is something he can be more flexible with but it will need to be at least the $13 million he is already slated to earn. At $33 million over three years he can reach a tidy three year value of $11 million per year so I would likely consider that a decent estimate. Those last two years will just be used for cap purposes. (As a sidenote for those asking why I would say McCoy’s contract was far worse than Murray’s, just look at the above chart).
The Cowboys Salary Cap Situation
Dallas is currently pressed right up against the salary cap with about $1.7 million in cap space. Once they sign their rookies they will be in the ballpark of $300,000 in space. None of this takes into account the contract potential of Greg Hardy. Hardy currently counts for $3,217,850 against the Cowboys salary cap, but that number can rise as high as $11,311,600 by the end of the year. Factor in roster expansion to 53 players, Practice Squad salaries, and a few injuries and Dallas is effectively $9-10 million over the salary cap. On a standard contract Peterson would likely have to count for at least $5 million in cap room, so this is a tough situation.
Dallas has three places where they can primarily find savings. One is the release of Brandon Carr after June 1. Designating him a June 1 frees up $8 million in cap space over the summer. That does not help them for acquiring Peterson over the draft weekend, however, as they would still be around that $1.7 million figure they are at now.
The second option is restructuring the contract of Tony Romo. I’ve discussed that in detail before and there is no need to rewrite it all here, but in a standard restructure the team saves $12.824 million. That is certainly dangerous for an older quarterback with a bad back, but is likely a strong consideration even if they don’t acquire Peterson.
The third option would be negotiating a contract extension with Dez Bryant, currently the teams franchise player and taking up nearly $13 million in cap space. I think it is worth noting that bringing in Peterson on anything more than a one year contract would be a determent to any negotiation with Bryant if the Cowboys main stance is off the field issues concern them with a long term contract with Bryant. In addition the recent contracts for Jeremy Maclin and Randall Cobb make this even more difficult. I would consider this the least likely of the three options to happen even though it makes more sense than a Romo restructure.
Outside of these three avenues there are no real major cap savings that can be found. To bring in Peterson they will likely need to do two of these three things.
How to Squeeze Peterson in
Assuming they do the first two moves discussed above Dallas will have somewhere in the ballpark of $8-9 million in effective cap space to set aside for Peterson. That would allow Dallas to do a relatively standard contract that might not hurt them badly in the future with a moderate signing bonus and escalating salaries.
But is there a way to do the move without touching more than just one of the above players? That would depend on Peterson and the Cowboy’s tolerance for pushing money into 2016. The Hardy structure allowed Dallas to bring Hardy to the team now while they wait for the NFL to determine Hardy’s fate. That gives Dallas ample time to decide what to do with Carr, Romo, and/or Bryant. But all Dallas did was delay the inevitable (assuming Hardy can play) until the season.
I guess we can draw some parallels here since Peterson is not guaranteed to be moved off the exempt list by the start of the year and the team could use a similar structure on a restructured deal to almost fit him into their existing $1.7M of cap room (they would likely need to include someone like a Morris Claiborne in a trade to do that), but again it is just delaying the inevitable for the season.
Dallas could attempt to exploit the incentive system to their advantage in crafting a contract to help defer costs to 2015 to lessen the size of a Romo restructure. Because Peterson only rushed for 75 yards in 2014, in theory the Cowboys could give Peterson gigantic payments for rushing for something like 100 yards in a year. The NFL only counts such incentives against the cap if the player reached the performance level the year before so a $10 million bonus for 200 yards on the season would not count against the salary cap until after the season when final adjustments are made. Such incentives would be virtually guaranteed to earn but this allows the team to manipulate the cap for one year. In 2016 the team would take on a large charge for the incentive that was earned but didn’t count in 2015.
I’m not sure that Peterson would be willing to take such a contract. For one this would significantly defer payment until after the season. Secondly the incentives are not really going to be counted as part of his base contract so from an on paper standpoint he will be taking a lower cost contract which is never a good for an ego. He would also run the risk of a preseason injury making the incentive null which is a major risk. Though the team can include rolling incentives to ensure that it will always be available for him to earn once in the future it is still a risky option. Still this is a way to squeeze him in now without major contract changes, but more likely they will need to rework contracts to get him under the cap.
Should the Cowboys Do It?
While Peterson may be a once in a generation player the fact is he will be 30 years old and only once in the last five years played 16 games. While the Cowboys personnel is superior to the Vikings Id imagine at best you would be looking at a 1,250-1,300 yard year (which is certainly excellent), which is probably not far off from where Murray might be unless his body breaks down from the high use last year. Dallas showed no inclination to make a big commitment to a younger player so I can’t see why they would do it here unless its really just filling a fantasy dream. They would have to be certain that, if healthy, Peterson can produce over 1,500 yards and 15 touchdowns to potentially justify the long term cap damage that can arise from the move.
Dallas has worked hard to get their salary cap back in order and this move would probably wreck most of that work. It would compromise their positions with their future salary cap and likely tie them to Romo for an additional season. I also believe it would have a negative impact on any negotiation with Bryant who is more important long term to this team than Peterson would be.
Peterson to the Cowboys may sound like a dream come true, but the team will be better off staying the course and finding someone else to play the position
According to Pro Football Talk, Marshawn Lynch and the Seattle Seahawks seem to have agreed in principle on a new contract extension that will pay Lynch up to $24 million in new money over the next three seasons. The delay on officially agreeing, one would think, is on the forfeiture provisions in the event Lynch were to retire after this season. Lynch will receive, according to PFT, a $7.5 million signing bonus of which $2.5M a year could be tied to wanting to play football.
The contract itself, despite the high $24 million new money pricetag, is most likey going to simply be a raise for Lynch of $5 million for this year to entice Lynch to come back to the Seahawks. He was previously under contract for $7 million and had indicated he might retire. The way the contract is structured the Seahawks would keep the same cap charge for Lynch in 2015 as if they never reworked the contract. That leads me to believe that they are just dumping some added cap charges into 2016 when he retires/is released.
Lynch’s $12 million payout this year is essentially what would be paid to a “franchise player” on a one year contract. The fact that the new money annual value works out to an even $12 million a year also indicates what the intention is here and they will deal with next season when it happens.
The big question is will this impact the running back market? Probably not. This salary moves Lynch into the class of recent contracts signed by Adrian Peterson and Chris Johnson, both of which were considered outliers in the market. Lynch is in a very unique situation in Seattle where he clearly is their most important offensive player and his style is not really “plug and play” like most of the players currently in the NFL. Peterson would be the one player who could potentially argue that this makes his $13 million salary legit for the 2015 season based on his projected significance to an offense and his past performance.
There were some reports yesterday that the Minnesota Vikings were considering releasing running back Adrian Peterson in light of his recent charges of child abuse. This morning Pro Football Talk clarified those rumors as the Vikings being open to trading Peterson but not necessarily releasing the running back.
The reason for this is more or less financial. Had the Vikings been aware of the severity of the charges or the fact that he would be indicted about a week ago they could have released Peterson and taken a $2.4 million salary cap charge in each of the next two seasons and washed their hands of him. However, the fact that this occurred after the first game of the season entitles Peterson to Termination Pay under the terms of the CBA.
Termination Pay protects the entire salary of a veteran player in the event he is on the active roster for the first game of the season, which Peterson was. Once Peterson suited up for the game against the Rams, his $11.75 million base salary was guaranteed for the season. Any release of Peterson puts the Vikings on the hook for paying him the large salary while still allowing him to go and seek employment and a further paycheck from another NFL team that is willing to deal with the charges and negative PR associated with the move. This was different than the situation of Ravens running back Ray Rice who was on a reserve list in week 1 and thus not entitled to Termination Pay.
By trading Peterson they are relieved of the salary obligation, which now transfers to a new team. The difficulty in trading Peterson lies in finding a trade partner. Besides the fact that certain teams would not be willing to touch him due to the charges, the team in question must also have about $10 million in cap space if that trade was to be executed this week. Based on our estimates the only teams capable of doing that trade would be the Jaguars, Jets, Browns, Eagles, Titans, Bengals and maybe Patriots. Of those teams the Jets, Bengals, Eagles, and Patriots would likely have no interest from a football perspective.
Each week that Peterson remains on the Vikings roster reduces the cap space required to execute the trade by just over $690,000. If they carried him to the trade deadline (which would require paying him an extra $4.14 million) teams would need around $6 million in cap room to execute the trade. That would open up about half the NFL to being financial able to trade for him.
So this is a complex issue for the Vikings that goes far beyond just cutting a player because it seems the right thing to do. There may be more justice in letting the legal system play out and allowing the NFL to potentially suspend Peterson without pay than being in a position where they pay Peterson millions of dollars to go away.