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The contracts for this
year's crop of top NFL rookies seem to be the biggest ever,
but they're almost as interesting for what they don't pay as
for what they do.
Contrary to widespread media
reports, neither No. 1 Fitzgerald pick Eli Manning nor
No. 3 pick Larry Fitzgerald received a $20 million signing
bonus. What each player did get is a complex package of
bonuses in deals that appear to make them the highest-paid
untested NFL players in history, but that left many people
confused over the true value of the deals.
The phrase "signing bonus" has been
tossed around to describe all compensation in a contract that
a player is guaranteed to receive even if he doesn't play a
single game. At the risk of splitting hairs, at press time for
this story, the highest actual rookie signing bonus this year
was the $8 million that the Oakland Raiders agreed to pay No.
2 pick Robert Gallery.
"I think there are some liberties
taken when some of the folks outside the organization
interpret the contract," said John Idzik, senior director of
football operations for the Arizona Cardinals, who would not
comment directly on the club's reported $60 million deal with
wide receiver Fitzgerald. "I think that is where you are
seeing these very large numbers that in many cases are not
entirely accurate."
Here's what Manning really
got:
A $3 million signing
bonus.
A $9 million option bonus,
which the team will pay in 2005 to extend the deal to the 2010
season.
A $5 million buyback bonus,
which the team will pay in the second or third year of the
contract to buy back two years of the deal.
A $3 million bonus in
incentives that are deemed "not likely to be earned" under the
NFL collective-bargaining agreement.
Rival agents last week questioned
how the contract could be touted as having $20 million in
guaranteed money when $8 million is contingent on Manning
achieving performance goals and the Giants buying back two
years of the contract.
But Manning's $20 million in
guaranteed dollars is Getting paid Click chart
to enlarge real, even though it is not paid in one lump
sum, said sources with the Giants. If, for example, the Giants
cut Manning before his first professional game, he would
receive all of his salary for 2004 through 2009 - which adds
up to $17 million - plus $3 million in signing
bonus.
"If they cut him today, he gets $20
million," said Tom Condon, Manning's agent.
What is less clear is whether
Fitzgerald's reported $20 million in guaranteed money is truly
there. Fitzgerald gets a $7.5 million signing bonus and a
$5.037 million option bonus, which gets paid next year if the
Cardinals pick up the option on the deal. Fitzgerald also has
$6.8 million in guaranteed salary.
But that $6.8 million guarantee
backs up the $5.037 million option bonus, and the guarantee on
the $6.8 million goes away once the option is exercised in
2005, said sources with knowledge of the contract.
Fitzgerald also gets an additional
$2.7 million if he plays a minimum of 35 percent of offensive
plays in the first year, or 45 percent in any other year, and
if the team or Fitzgerald hit any one of 12 minimum
performance targets. That bonus is available in every year of
his contract, and agents agree that Fitzgerald will probably
earn it in his first year. "If the kid doesn't get at least
one of [the performance targets], the kid is the worst
receiver ever," said one agent. Despite that, the $2.7 million
is still, technically, not a guarantee.
One contract that has gotten
relatively little attention is Gallery's. Gallery
even though his guaranteed signing and option bonus total
$14.5 million, about $500,000 more than that of the No. 1 pick
in last year's draft, Bengals quarterback Carson Palmer.
Gallery, an offensive tackle, also may get an additional $2.5
million in bonuses that become guaranteed under certain
circumstances.
Although agents disagree on the
precise values of the deals, they do agree that this is a good
year for first-round rookie contracts. The contracts are
especially creative and include multiple bonuses because
agents and teams were challenged by the fact that they could
only prorate signing bonuses over six years, compared to seven
last year. Under the league's collective-bargaining agreement,
signing bonuses may be prorated three years past the last
capped year in the contract, which is 2006. The NFL and NFL
Players Association are in talks to extend the CBA, which
expires after the 2007 season.
"This is the most explosive first
round ever because of the presence of so many dramatic
offensive players and franchise quarterbacks," said veteran
agent Leigh Steinberg, who represents No. 11 pick Ben
Roethlisberger.
Moorad named CEO of
Diamondbacks and Agency must defend
clients
The new head of Moorad Sports Management knows
his competitors will try to steal his clients now that veteran
agent Jeff Moorad has left to become CEO of the Arizona
Diamondbacks. But Greg Genske says he's ready.
"While [Moorad's departure] may come as a shock
to people in the sports industry, the people at Moorad Sports
have known about this day and been preparing for this day for
over a year," said Genske, 32, the new CEO of the Newport
Beach, Calif., firm, which represents 40 MLB players, 40 minor
league baseball players and five NFL players. The client list
includes stars such as MLB's Manny Ramirez, Luis Gonzalez,
Shannon Stewart and Darin Erstad, and NFL running back
Edgerrin James. But one rival agent said, "It's open
season," echoing the sentiments of others in the
representation business, none of whom would comment for the
record.
"I think other agents have been trying to steal
our clients since I joined the firm," Genske said. "It is just
the nature of our business. We are quite confident that our
clients are satisfied and will be staying with us." Genske
was hired last November as executive vice president and was
groomed by Moorad to take over the practice. Genske said
Moorad, 49, told him that being a sports agent was "a young
man's business."
It is somewhat ironic that the new head of a
firm that other agents predict will be raided was part of the
legal team that won a $44 million jury award in a trial over
client stealing. Genske was one of the lawyers who convinced a
federal jury that agent David Dunn acted inappropriately in
taking 50 NFL player clients from the firm of Dunn's former
partners, Moorad and Leigh Steinberg.
Brock Gowdy, managing director of the San
Francisco office of Morgan Lewis Bockius and head of the legal
team that handled the case for Steinberg and Moorad, said
Genske was instrumental in winning the verdict.
"He is tough and forthright," Gowdy said. "I
wouldn't be misled by his boyish charm."
Kent Roger, a partner at Morgan Lewis, said
third-year associates are rarely given the responsibility
Genske had in such a big trial. "He is a bulldog," Roger
said.
Genske said part of his job on the litigation
team was to become an expert in the business of athlete
representation. Scott Parker, a Moorad Sports lawyer who
has worked on some of the firm's biggest contracts in both
baseball and football, said Genske has become "very capable
and very competent" in a short time.
He noted, too, that all the agents and client
service managers who worked for Moorad for years are staying
with the firm, including Brian Peters and Gene Mato.
Genske said the "Moorad" name also is staying,
at least for now. Among the challenges Genske has to deal
with is an MLB Players Association investigation into whether
Moorad's switch from representation to management violated the
union's conflict of interest rules (see related story
above).
A major football client has fired the company,
complaining about a contract negotiated by Moorad and Parker
just before Moorad left the firm. Sean Taylor, the fifth pick
in this year's NFL draft, fired the agency just days before
Moorad left and days after signing a deal with the Washington
Redskins.
Taylor re-signed with NFL agent Drew Rosenhaus,
the agent whom Taylor had fired right after the draft in favor
of Moorad and Mato. Rosenhaus said Taylor now thinks his deal
is below market value, and that the fact that Moorad
negotiated the deal and then quit the agent business is an
issue he has taken up with the NFL Players
Association.
Genske replied, "We think the deal will stand up
over time as a good deal."
The Taylor deal was one that Moorad had a major
role in negotiating, but in the last several months Genske,
Parker and other agents in the firm have been taking over much
of the contract and other work, which is why Genske thinks the
firm will be able to retain player clients. High-profile
baseball clients, including Shawn Green, Stewart and Gonzalez,
have said they plan to remain with the firm.
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