Football is a contact sport where injuries are naturally a part of the game, but the biggest reason why this is relevant is because of the financial consequences the injured athlete could face.  This offseason we saw some holdouts and extended contract negotiations from Vincent Jackson, Nick Mangold, and Sam Bradford, as well as the well chronicled Darrelle Revis episode.  One of the major aspects of the negotiations that halted continued progress was the amount of guaranteed money in the contract.  Guaranteed money in contracts is usually the most disagreed upon aspect of the contract, and is what often stretches out negotiations.  In the NFL, everyone is always one major hit away from their career being over and their bank accounts being emptied.

Each of the past few years, we have seen record breaking contracts in the amount of money guaranteed for top draft picks.  In 2009, Lions #1 pick Matthew Stafford signed a 6 yr $72 million deal ($41.7 guaranteed), and this past season Rams #1 pick Sam Bradford signed a 6 yr $78 million deal ($50 guaranteed).  While it surely is a big risk on the owners’ part, it is an investment they hope will  satisfy the needs of their franchise player.

As spectators and fans of the NFL, we are often so quick to judge players for holding out and demanding more money.  What we fail to realize is that unlike the jobs most of us have, the job that these athletes take part in is so physically demanding that it could put their lives in jeopardy.  While I am not advocating that agents try to milk every last dollar out of team owners, because quite often greed and selfishness do factor into these negotiations, we have to be more understanding of just how fragile an NFL player’s career is.  When a player suffers a severe injury, it affects the entire dynamic of the player’s life (wellbeing, income, career, family).

As more and more season or career ending injuries take place this year, it will be interesting to see how this affects the new collective bargaining agreement negotiations.  Owners want money back from the players, and the players want to be financially secured.  Aside from the guaranteed money/injuries issue, the proposed 18 game schedule will only strengthen the NFLPA’s stance that the amount of money being dished out on salaries is not too high.

A builder has a hammer, a tailor has a sewing machine and a writer has a pen and paper.  For football players, their tool is their body, and they need to do everything they can do protect it.

Enjoy week 2 and the rest of the NFL season…. While we still have it.

A Recap Of NFL Week 1, And A Look To The Future from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

As you can see, 30% of the total salary in 2010 is $195,000. Therefore, in the new deal the total salary each year can only increase or decrease by $195,000, and nothing more. Here is how the rule will be applied after signing a new deal:

Some of you may be asking why we sometimes see players like Patrick Willis getting these mega deals while still on his rookie contract. Well, that is what signing bonuses and escalators are for. Teams often give a player like Willis a huge signing bonus and a lot of easily achievable escalators.

Let’s face it – The rules in the NFL CBA are mostly on the side of the individual teams and not the players. This is mostly evident in the fact that a club can end a player’s contract if he doesn’t perform well enough. The player cannot just terminate his contract if he’s not happy, so that’s why we hear a lot about holdouts. When I was younger boy entering my teens, I would often stage holdouts at my house. I knew I had no say in my household and the rules heavily favored my parents. In order to combat that, I would refuse to go out when my parents wanted to. That’s kind of a random example, but hopefully makes the situation more clear.

Anatomy of the NFL 30-Percent Rule from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Just like college ball, training camp is vital to a rookie’s success in the NFL. It is the equivalent of a new student at school missing the first month of classes, in that there is a lot of work to be made up and a lot of key tips missed from the instructor. Clifton Brown of NFL.com had this to say about rookie holdouts: “Any player who misses more than three days of camp is taking a serious risk. What rookies see at OTAs and minicamps doesn’t compare to what they see at training camp. Everything is accelerated 100 percent. Historically, rookie holdouts have a hard time playing well and they often suffer injuries after they show up.”

As some of you may recall, former Raiders quarterback JaMarcus Russell held out for 47 days before signing his mega deal. We all know how that turned out. One could argue that Russell was a lost cause from the start, but we don’t know that for sure. Another big name that we all are familiar with is 49ers WR Michael Crabtree. Crab held out for 67 days before signing a six-year, $32 million deal with $17 million in guaranteed cash. Earlier in the holdout, Crabtree was seeking a bit more money than what he was presented with. He played decent when he joined the team, but there is still a lot to be shown before I’m sold.

Since my goal is to eventually become a successful agent, I have already begun to think out how I will handle these types of situations. Never too early, right?

First off, before I did any type of negotiating, I would explain to my client the benefits and detriments of holding out. Then I would ask him if holding out is an option for him (after all it is the client’s career). Some players feel confident enough that they will earn big money later on, so they decide to head to camp and accept whatever is negotiated. To me, image of my client is very high on my list. I do not want to put my client in a position to hurt his image. I was always taught to never burn bridges, and I just feel as though a player can be much more successful and comfortable with a team if he shows up to camp on time and eager to learn.

So, I ask you all: What would you do if you were in this position?

Please feel free to follow me on Twitter (@Dominic_Perilli) for updates on upcoming stories, and the latest comments.

Should Agents Hold On Before They Holdout? from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Michael Crabtree may have shot himself in the foot when he decided to hold out these past four weeks of the season. The reason for this is that Crabtree pretty much lost all leverage when the 49ers started the season hot. After their winning streak, Eugene Parker knew he had to act quickly and get his client signed. His contract is a rather interesting one and is full of quirky clauses.

Here’s the deal:

• Crabtree signed a 6-year/$32 million contrac.
  • The 6th year is optional based on performance.
  • If a certain amount of stats are reached, the contract will turn to a 5 year/$28 million deal.
  • Discretionary Salary Advance – The 49ers pay Crabtree with the ability to get the cash back (minus the bonuses) in the event of a holdout, suspension, etc.
  • Diva Clause – some cash is tied to this clause which says that if Crabtree does not attend all mandatory functions and does not attend about 90 percent of the Niners’ voluntary events, San Fran can void all escalators tied to the clause.

I like to look at this contract as a “You Should Have Signed Earlier” contract. The reason for this is that many news sources say that the deal offered to Crabtree after the draft did not have any of this special language in it. It was a simple contract.

Sometimes when you roll the dice and take a risk such as the one Crabtree took, you lose. While Crabtree will get paid, he is definitely walking on eggshells in the Bay Area.

The Crabtree Contract: A Breakdown from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

• Aaron Curry, LB, Seattle Seahawks (4th overall pick) – Octagon
• Andre Smith, T, Cincinnati Bengals (6th overall pick) – GMG Sports (Alvin Keels)
• Eugene Monroe, T, Jacksonville Jaguars (8th overall pick) – 320 Sports
• B.J. Raji, DL, Green Bay Packers (9th overall pick) – Athletes First
• Michael Crabtree, WR, San Francisco 49ers (10th overall pick) – Maximum Sports (Eugene Parker)
• Aaron Maybin, DE, Buffalo Bills (11th overall pick) – BEST (Blue Equity)

Creative Artists Agency (CAA), the company with the most amount of first-round selections (9), has all of its clients in camp with Malcolm Jenkins putting pen to paper on a 5-year, $19 million deal.  While the rest of the agencies listed are hoping to get exorbitant contracts for their clients, to use the figures in their recruitment packages for the 2010 class of draft-eligible players, CAA can boast that not only did the company have the highest number of first-round picks, but got them all signed before other big companies like Athletes First and Octagon, small companies with 1 first-round pick like 320 Sports, and signed their boys for good money.  You better believe that Todd France of FAAM will be using the same strategy on the recruitment trail over the next year.

Which method will win out?  The agents who have their clients holdout/threaten to sit out a year well into training camp, or those who get their boys signed for good money and get their boys into camp before the middle of August?

NFL Agent Recruitment Strategy from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

According to ESPN, Jackson signed a two-tiered contract worth $29.3 million with $21 million guaranteed over three years or $49.3 million by way of huge escalators over five years (full details on the contract are not available yet). The contract has been structured as a five year deal, but the Rams have the option to void the last two years of the contract if his performance levels are not what they expect.

It has been reported that Jackson will have to put up similar numbers over the next three years as he did in his last three. From 2005 to 2007, Jackson rushed for 3,576 yards and 26 touchdowns and caught 171 passes for 1,396 yards and 6 touchdowns. Jackson has great abilities and has proven it in the past, yet after missing 4 weeks of camp, Head Coach Scott Linehan said Jackson would not be playing in this weekend’s preseason game because he needs to get his body in football shape. Also, with new offensive coordinator Al Saunders trying to make Jackson the focal point of the offense, Jackson has a lot of catching up to do in the next couple of weeks before the regular season starts.

Jackson’s agent, Eugene Parker, put Jackson in a good position. Jackson got the $20 million in guaranteed money he was looking for, and has the opportunity to nearly double the money he receives if he plays as well as he is capable of. Also, if the Rams decide not to pick up the last two years of his contract, Jackson could end up a free agent on a market with potentially no salary cap. Hopefully for the Rams, Jackson lives up to his contract and they don’t get burned by dishing out top running back money and not getting the production they wanted in return.

Jackson Gets Paid from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

The Jaguars’ displeasure with the Harvey holdout has been made pretty apparent. Harvey’s representatives want money similar to what the 7^th pick, Sedrick Ellis received. The Jaguars are reluctant to come close to such an offer.

Not only are the Harvey negotiations affecting the Jaguars, but it is seemingly affecting the Cincinnati Bengals as well. The Rivers’ camp is having a difficult time getting a deal done, for they are trying to gauge what type of numbers Derrick Harvey will receive.

As an agent, you never want to get your client what may turn out to be a low ball deal. But at the same time, you can’t sit on your thumbs waiting for another player to get signed.

I believe that in this situation, his representatives have to put a value on how important it is for Keith Rivers to start. The more camp he misses, the greater chance there is for Rivers to lose out on a starting position. Talent wise, there is no question that he can start for the Bengals, but he sorely needs to get his repetitions in.

Getting into camp on time and winning that starting position is worth a lot more than some may think. A perfect example of what can result from getting into camp on time is the season Patrick Willis had last year. Not only did he earn a trip to the Pro Bowl, but he was also named Defensive Rookie of the Year.

Going Down a Winding River from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules

Although I understand the players’ demands and do not blame them for trying to get the money that they think they merit due to performance, $15,000 a day is a hefty price to pay to make a player’s voice be heard. There has to be a better way to deal with the problem of player compensation.

For Rookies

Institute a pay scale similar to the NBA’s system for incoming rookies. In this system, the salaries would be predetermined by the NFL and NFLPA. The first two years of the contract are guaranteed with a team option for the third and forth years, and it sets the price for a qualifying offer in the fifth year. I believe this is a fair system because usually after four years, a team can determine the development and the quality of the player it has drafted.

In cases where players break on to the scene with a great rookie season and have proved they can perform consistently at a high level with another good season (like Minnesota Vikings RB Adrian Peterson is poised to do), teams should add clauses to contracts where if certain performance levels are met, they will allow a contract renegotiation after the second or third year.

I believe that players who have not consistently proved that they can be top tier players should not receive top tier salaries like many rookies are demanding. Allowing teams to have an option on the third and forth years of the contract saves them from paying out huge, multiyear deals to first round players who bust. It also allows them to keep players who they believe are developing well on their teams. As I said earlier, I believe that the league should only allow contract re-negotiations in the first four years if a player meets performance clauses and proves he can consistently perform at a high level for multiple years that would warrant an extension.

For Veterans

I believe that every veteran player who has proved his worth to a team and shown he can be a productive contributor in the league should be rewarded in such a way. By instituting a pay scale for rookies, teams can make sure that they have enough cap space to compensate the players who have proved themselves, on and off the field, properly.

The same system should be used for veterans in the sense that teams should include clauses that after the first two years, and every year or two years after that depending on the length of the contract, if certain performance levels are met, the team will allow for a re-negotiation of the base/guaranteed salary and performance level incentives for the remainder of the contract, or a complete restructuring and extension of the contract. This again allows players who outperform expectations to re-negotiate their contracts for proper market value and protects teams from having to overpay for players who have not proven themselves worthy of premier contracts. Also for consideration could be a player option clause, where in the final few years of his deal, if a team wishes to pick up an option on a player, the player must also agree to the option or else he can become a restricted free agent.

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I think a contract system like the one I described above could help end a lot of the training camp holdouts that we are seeing currently, especially on the rookie end. By getting these players off their couches and back onto the practice field, all parties involved benefit. I believe as agents, it’s our duty to make sure that we negotiate contracts that give our players flexibility and the ability to get what they are worth without having to damage their relationships with their teams by holding out.

Obviously there are always players whose values are difficult to gauge who might warrant a holdout, like the Chicago Bears’ Devin Hester. Yet overall I think this system would help keep team owners happy by protecting them from overpaying players who have not earned the salaries they are expecting, and gives players who have truly earned an extension and increase in salary through performance their dues.

Am I missing something? Is there something like this already in place I’m not aware of? Please leave your thoughts and comments below, The Sports Agent Blog Community would love to hear what you have to say on the topic. Thanks!

The Waiting Game: Ending Holdouts from Sports Agent Blog - Sports Business, Sports Law, Sports Negotiations, NCAA Rules