Tom Brady frees up $24M for Pats

[Monkhouse]

Under the new deal, Brady changed the $24 million in "skill" guarantee to only "injury" guarantee, meaning that Brady now would get the guaranteed money only if he were injured.

Brady also now can be released by the Patriots without any liability, but he then would become an unrestricted free agent, free to command the type of guaranteed money he has agreed to surrender.

The move frees up cash for the Patriots to use on other players. New England needs the cash to help re-sign some of its own free agents, including cornerback Darrelle Revis, safety Devin McCourty, tackle Nate Solder and running back Shane Vereen, among others

Much respect to a great player, and to think he was chosen in the sixth round.

http://espn.go.com/boston/nfl/story/_/id/12094227/tom-brady-restructures-contract-give-new-england-patriots-24-million-more-cash

[jambr380]

Being a basketball blog, we always look at Tim Duncan, Popovich, and the Spurs and think just how lucky they are compared to us (and every other NBA team). However, we have our own Spurs situation in Brady, Belichick, and the Pats. The Cs have always been my favorite, but the Patriots are definitely number 2.

I just hope Brady can play forever. 

[footey]

Hope the Pats reward Tom with a great FA receiver signing this off season.  Also sign Revis long term.

Brady gets it.  More than Peyton ever will.

[Donoghus]

Trying to decipher the intricacies of this move.  From the sounds of it (Miguel's@PatsCap.com), it sounds like its a cash flow move and not necessarily a cap freeing move.   Essentially, the Pats just avoided putting $24 million in escrow because of this move. 

[Vermont Green]

I don't understand how this works.  It sounds great but it seems like the Pats only save the money if he gets cut and this change gives them the option to cut him.  I am not sure I see how exactly they can keep Brady and have $24M more to spend.  Can someone break this down?  Brady has always been willing to accept team friendly deals so I am not knocking Tom, I just don't understand how this works.

[Donoghus]

I don't understand how this works.  It sounds great but it seems like the Pats only save the money if he gets cut and this change gives them the option to cut him.  I am not sure I see how exactly they can keep Brady and have $24M more to spend.  Can someone break this down?  Brady has always been willing to accept team friendly deals so I am not knocking Tom, I just don't understand how this works.

The way I'm understanding it is that Brady's contract was a guaranteed "skills" contract prior to today's move.    Changing the label to "injury-only" doesn't change the cap number in any way.  It just changes the dynamic of how the $24 million is paid out.   

The amounts of fully guaranteed contracts have to be paid in escrow by the team to the NFL.    So the Pats would've been on the hook to cut the league a check to the NFL for $24 million.  Now they can pay his salary "in house" on a weekly basis instead because of the change in nature.  So that frees up cash for the Patriots rather than bite a $24 million bullet at the moment. 

EDIT:  One last thing is that this move changes the cap hit if he was traded or cut.  Becomes more team friendly. 

[Vermont Green]

One last thing is that this move changes the cap hit if he was traded or cut.  Becomes more team friendly.

Hmm, I wonder how likely either of those to options are?  Seems pretty unlikely that Brady won't get his money so I guess it really is a cash flow thing for the Krafts.  Hard to imagine they are having cash problems and had to go to Tom for help.

Is there any difference if Brady were to just retire?  Is that the same as being cut?

[GreenFaith1819]

Awesome, great guy AND QB.

Can we clone him and send his duplicate to Washington?

[Donoghus]

One last thing is that this move changes the cap hit if he was traded or cut.  Becomes more team friendly.

Hmm, I wonder how likely either of those to options are?  Seems pretty unlikely that Brady won't get his money so I guess it really is a cash flow thing for the Krafts.  Hard to imagine they are having cash problems and had to go to Tom for help.

Is there any difference if Brady were to just retire?  Is that the same as being cut?

I don't think the Krafts have any cash issues of the sort. Its just the practical matter of being able to spread out $24 million rather than cutting a $24 million check at one time. 

The remaining signing bonus would still hit the cap if he retired.  Just depends on the timing of when the retirement would be made in regards to which cap year it would hit.  League year starts on June 1st.