AGENT TALK

by Profootballtalk columnist Ron Del Duca

Free Agency: If You Don't Play The Game Right You May Become "Free" From Your Client

POSTED JANUARY 22, 2004 @ 10:21 PM 

As the commencement of the NFL free agency signing period approaches, I thought it may be wise to remind the reader of several issues that the astute Contract Advisor is cognizant of when he and his unrestricted free agent  client are "shopping the market": 

Free Agency Time Table.  Even though I have not researched the actual numbers, it seems that a substantial number of the higher value free agent deals are done in the first 7 to 10 days of the free agency period – during this time teams tend to overpay a player rather than lose him to another team (whether the interest of competitors in the same player is real or not).  After the initial 10 days, teams tend to adopt a “wait and see” approach and try to get players at a cheap price (you start to hear things like "your client really isn't very good so why doesn't he sign for the veteran minimum" while at the same time the clubs tells you Mr. Minimum can start for them).

Determining the Interest of a Team in Your Free Agent.  For a player in demand, it is best to discuss preliminary contract figures with the club before your client visits.  Otherwise, the client could waste an entire day at the team’s facility and in return you receive a $1 million a year offer rather than the $3 million a year you (and he) are expecting (and which would have been gladly paid by the other team that you stiffed that has now signed someone else for the position).   It should be noted, however, that some teams will use “team speak” (“yeah, we can work with those numbers”) to induce your client to visit and then try to pressure your client to sign a lower deal while he is at the team facility.  Forms of pressure include the free agent’s flight to another team being supposedly mysteriously cancelled ("they said something about meteor showers so you better go ahead and sign with us because it may be days before that clears up”) and the ever popular “you have 5 minutes to accept this offer – after that we’ll pull it off the table” (they almost never do). 

Media.  Constant media attention goes with a client who is a sought-after free agent.  The media can be helpful in not only providing you information concerning management’s interest in your client (i.e., potential contract numbers) but the media also can be your mouthpiece to signal to a particular team that your client has interest from other NFL clubs (“Print it -- my client has been contacted by every professional football club in the world -- and a few from that new league on Pluto”). 

Personnel Matters.  Lack of knowledge regarding a potential team’s intentions on how your client fits into their scheme (i.e., starter/reserve, DE or DT, etc.) not only precludes the Contract Adviser from determining the actual interest of the team in his player but also could result in the player signing with a team that is a wrong fit -- and probably causing your client to believe you no longer fit as his agent ("you guys still have Jim Brown playing running back here, don't you?").

Judging the Market.  All clients want to be paid “market value.” Obtaining contract information from the NFL Players Association as to other free agent offers for players at the same position (in terms of signing bonus, total monies paid, length of deal, incentives, etc.), and utilizing contacts you have from various teams who are competitors with the team that is pursuing your client are some of the areas that are essential to competent representation. Determining how many strip clubs, car detail joints and/or Sushi bars that are located in the city of the club that is interested in your client is not.

Contract Matters.  Review the contracts of other players who play the same position as your client -- items such as signing bonus language, incentives, and deferral of money should all be known before your negotiations begin.  Your guy will know what the other guys who play his position make -- and if he thinks you are doing a bad deal he'll make sure he gets the cell numbers of the agents of the other guys.

Bluffing.  The interest of other teams in your client can be communicated -- but the worst scenario is for your bluff to be called by the team and you have no alternative plans.  Always remember an employee for one club has a friend/contact at other clubs. Statements like "my guy is going to the Hall of Fame" or “Signing bonus?! – I thought that was his away game per diem” are not considered good negotiating techniques.  

            Know Your Client.  If your client is not a risk taker don't try to make him one – even though it is your job to get the best possible deal for the player you still must leave the final decision to him.  During this process the opinions of a player’s wife, parents or other trusted confidants may come into play if the player wants them to be involved.  Note, however, that the opinions of the player’s pet monkey Billy, former third grade class buddy Tommy or his friend  Big Bosom Bubbles should not be listened to. 

            You Are Only as Good as Your Client.  The better the client, the more leverage the agent has.  If your player is a “street” free agent (recently released with little previous playing time), haggling over a $2,000 greater signing bonus will most likely result in the potential new team saying “next.”  Also note that supposed superstars can also have those items that result in the so-called “chilling effect” on free agent paydays – your client’s involvement in the amateur movie production of Making Baby 101 and/or public service spots titled If I Really Drink A Lot and Drive Into A Tree I Will Promote The No Drinking and Driving Rule are not recommended to increase his market value.

Get Out The CBA And The No-Doz: Its NFL Terminology Time Again

    POSTED AUGUST 24, 2003 @ 12:35 PM 

As the final cuts for the 2003 NFL rosters rapidly approach, it is time to revisit a variety of terms that will emanate from NFL club transaction sheets as teams  get down to this Tuesday's  4 PM EST 65 man cut down limit, with the final roster trimming to 53 men arriving August 31.  In an attempt to provide you the reader a brief description of some of the terminology that frequently arises at this time of year (and with credit to the resources provided by the NFLPA), the following short primer is noted:

CUT DOWNS/SQUAD SIZE. For the 2003 season, each NFL club had to reduce its roster by 4 PM August 31 in terms of its Active/Inactive (i.e., 53) list. Note that teams can actually circumvent the beforenoted 65 man roster size (August 26 deadline) in that they can elect to keep players who played in NFL Europe this past spring up until the 53 man final roster cut, said players being excluded from counting against the 65 man roster.  Immediately prior to kickoff each week during the regular season, clubs must establish a 45 player Active list from their 53 man Active/Inactive roster, and identify one additional player on the Inactive list as a 3rd quarterback who can enter the game only if the other 2 quarterbacks can not play.

WAIVER WIRE. Generally, any released player with four (4) or less credited seasons is placed on waivers at 4 PM on the date he is officially released, if said release is before 4 PM.  Any team can submit claims for any of the recently waived players (note a released player with more than 4 credited seasons is deemed to be "released" rather than "waived").  When a player is claimed by more than one team, then the team with the worst record in the 2002 NFL regular season will be awarded the player (and assume the provisions of his contract).  If the 2002 records of two or more clubs who claim the same player are identical, then additional tie breakers are used to determine to which team the player is allocated.  Note if a team is awarded a player, then the club will most likely have to release a player currently on their roster in order to not exceed the previously noted 53 man roster limit.

PRACTICE SQUADS. After 4 PM EST on September 1, each club may establish a Practice Squad of no more than five (5) players who are free agents and who did not dress for more than eight (8) regular season games during their only accrued (i.e., on the 53 man roster for at least 6 games) season.  The minimum salary for a Practice Squad player is $4,000 per week (a higher salary can be negotiated), including playoff weeks. In addition, a player under contract to a club as a Practice Squad player is completely free to sign a contract with another NFL club during the season in order to be on the second club's Active/Inactive (i.e., 53 man) list. If another club signs a Practice Squad player to its 53 man roster it does not have to provide any sort of compensation to the player's former club but it generally must keep the player on the 53 man roster for at least 3 weeks, thereby mandating that he earns in 2002 the minimum first year salary for said 3 week period ($225,000 prorated weekly). Also note that a team can add and release players from the practice squad as often as it desires and the five (5) man limit does not have to be maintained.

PHYSICALLY UNABLE TO PERFORM (PUP). A player who fails his club's pre-season physical at the start of training camp may be placed on the club's Physically Unable to Perform (PUP) list.  A player on PUP is eligible to receive his salary, but is ineligible for games and practices; he is, however, allowed to attend team meetings.  For a three (3) week period beginning with the day after the club's 6th regular season game and ending on the day after the 9th regular season game, a player on PUP may practice with his club and/or be restored to the club's 53 man roster (provided it is done before the day after the 9th regular season game).

RESERVE/INJURED. A player who suffers an injury in practice or game after passing his club's pre-season physical may be placed on the club's Reserve/Injured list if the injury renders him physically unable to play football.  A player will continue to receive his salary (usually the lower of the split salary stated in the contract - $130,000 for 1st year players in 2003) while on the Reserve/Injured list, but he is prohibited from practicing with the club for the remainder of the season (attending team meetings, however, is allowed).

NON-FOOTBALL INJURY OR ILLNESS (NFI). A player who fails the pre-season physical of his club because on an injury unrelated to football (i.e., plays basketball and gets hurt) may be placed on the Non-Football Injury or Illness (NFI) list if the injury renders him unable to play football.  A player will not be entitled to receive his salary on NFI (but the club can elect to pay him) and will be prohibited from practicing with the club until the three (3) week period beginning the day after the club's 6th regular season game (similar to the format previously discussed for PUP).  If the non-football related injury occurs after the player passes the club's preseason physical (i.e., cuts his leg while mowing his lawn), the player may also be placed on NFI but is not able to return to practice or play with the club at any time during the season.

NFL MINOR LEAGUE FOOTBALL:

HAS ITS TIME COME?

REVISED AND POSTED JUNE 24, 2003

 (ORIGINALLY POSTED JANUARY 14, 2003)

Recently, some NFL management officials have strongly suggested that the NFL Europe experiment may be ending.  Factors such as high costs of operating teams in Europe, inconvenience of scouting games in person and the increased risk of injuries for some players when they make the jump from the end of the NFL Europe season until the start of NFL training camps (approximately 100 days) could cause the NFL Europe format to be strongly reconsidered this September at the NFL owners' meetings. Based on the possibility the NFL may eliminate the European vacation for some of its players, it may be time for the league to implement its own minor league system.

Sports fans are familiar with the minor league format of baseball and hockey.  To a less organized degree, NBA teams have utilized the Continental Basketball Association and foreign leagues to supplement their teams.  Except for the rare input of players from the Canadian Football League or Arena Football, and excluding the may-soon-be disbanded NFL Europe, NFL teams do not have a formalized affiliation with another professional league in terms of the development of prospects.  Based on a format similar to that used in Major League Baseball and the National Hockey League, the following is a framework of a NFL Minor League system ("NFL Minor"):

Teams: NFL Minor would be composed of 8 teams, consisting of two 4 team divisions. 4 NFL clubs will have a direct relationship with one of the eight particular NFL Minor teams (i.e., 32 NFL teams, 4 NFL clubs per NFL Minor team.) Each NFL Minor club would be owned by the NFL, and be located in those cities (as determined by the NFL) that do not have a regular NFL club nor a perennial NCAA Division I college football power.

Allocation of Players: Each NFL club would allocate, after the completion of its NFL training camp, 15 players from its initial training camp roster to its NFL minor affiliate.  There would be no restriction on age or years of NFL experience for allocated players.

Management/Coaches of NFL Minor Clubs: To be determined solely by the NFL.  The advantage of such a system would be the training of management and coaching personnel for future NFL opportunities, and accelerated implementation of the NFL's affirmative action program.

Roster Determination: NFL Minor training camps would open the Saturday before the first game of the regular NFL season (i.e., around Labor Day).  From the initial 60 man roster (i.e., each of 4 teams allocates 15 players), a final 50 man roster would be finalized within 21 days after the beginning of the NFL Minor camps (which is approximately the same day after the 3rd week of the regular NFL season).

Player Salaries: Any player who is allocated to NFL Minor by his original NFL club will receive $3,000 per week (which is lower than the general $4,000 a week for NFL practice squad players and more than the approximate $15,000 total that NFL Europe players make).  Note that any NFL Minor player who is elevated to a regular NFL club during the season (see below) would be paid the regular NFL minimum salary ($225,000 for 1st year players, etc.) while on the regular NFL club.

Player Movement: Each NFL club would be allowed to bring up one of its allocated players from its NFL Minor affiliated team without said player being subject to a claim by any other NFL club, up to a maximum of 5 times during a regular NFL season.  Any attempt to bring up a player after the "5 time rule" is satisfied will not be automatic and will cause said player to be subject to claim by any other regular NFL team via a waiver system similar to the one currently used by the NFL (team with worst record gets first choice, etc.). 

Note that when a NFL Minor player is elevated to his NFL Club, the club will have the option to allocate to its NFL Minor affiliate any player that it has to release to make room for the elevated player, provided that the released NFL player is not claimed on waivers per the NFL waiver system (if applicable).  Any NFL player allocated to NFL Minor during the NFL regular season will earn the beforenoted $3,000 week NFL Minor salary, unless a different amount was negotiated in the allocated player's regular NFL contract.  This is similar to the NHL, where players are given (after negotiation) "2 way" contracts, providing that they make a lower base salary if they play in the minor league system of the NHL club.

A team's allocated NFL Minor player can be claimed by another NFL club (the "Claiming Club") for activation to the Claiming Club's regular NFL roster at any time, subject to the right of the original NFL club, when provided notice of said claim by the rival club, to preclude said claim by electing to activate the player in question to its NFL roster (note the beforenoted "5 time rule" will not be applicable in this situation thereby allowing the original NFL club to be able to retain its NFL minor player even though it has already had 5 call-ups to the regular NFL team to date).  If, however, a NFL club elects to activate to its regular NFL roster another club's NFL Minor player and the original NFL club does not elect to activate the same player to its roster, the new (claiming) NFL club must transfer its 7th round pick in the upcoming NFL Draft to the original NFL club (or if the claiming club does not have a 7th round pick in the upcoming Draft then it must transfer its 6th round pick, or if it doesn't have a 6th round pick then its 5th round pick . . . ).

Games: Unlike NFL Europe, NFL Minor games would be played during the same time as the NFL regular season, except that a 12 game schedule would be implemented and all games would be played on Saturday nights.  [Note one reader -- my dad -- has suggested that games should also be played on Wednesday nights]. The intent of this type of format is that fans would be more receptive to an NFL-affiliated league if it were played during football season and at a time (Saturday or Wednesday night) that does not conflict (usually) with college football games.  Upon the completion of the NFL Minor schedule (which would coincide with the ending of the regular NFL regular season schedule), a play-off format would involve the top 2 teams in each division playing in the first round of the playoffs (#1 seed in East plays #2 seed in West, etc.), with the NFL Minor championship being played the following week.  Note the NFL Minor playoffs would be on Friday nights since the NFL clubs would have playoff games on Saturday during the same time period.

Completion of NFL Minor Season: All allocated players still on the affiliated NFL Minor team would count against the NFL club's 80 man roster for the next NFL season.  Any NFL Minor players released during the subsequent off-season would be subject to the regular NFL waiver rules.

The advantage of the NFL Minor system is that it would allow a NFL club to get a "second look" at a player that does not initially make its regular NFL club without actually having to relinquish that player's rights for any such players could be allocated to the club's NFL Minor affiliate.  Also, by having the teams play during the regular NFL season and in the U.S., an NFL club would be able to shuffle players between its minor league affiliate and the NFL club in a manner similar to the system used by MLB and NHL clubs.  Unlike the Canadian and Arena Football Leagues, the NFL Minor player would also be playing with the same set of rules and conditions that are used in the NFL. Finally, by locating NFL Minor teams in U.S. cities that would be identified by the NFL as being receptive to NFL-affiliated football, the operating cost of the league should be less that the NFL pays to maintain NFL Europe.

THE BENGALS LOYALTY CLAUSE:

SAY WHAT?

POSTED MAY 21, 2003

Recently, media reports have been breathlessly reporting the utilization by the Cincinnati Bengals of language in the signing bonus of the Carson Palmer contract that penalizes Palmer if he makes disparaging comments about the Bengals club, its coaches or management.  As readers of this column know, I previously had discussed this “loyalty clause” provision in regard to previous Cincinnati draftee and veteran contracts.  Generally, violation of the provisions by the player will result in the club being able to recover a portion of the signing bonus paid to the player when he signed his contract.  Since the clause is once again making the news, a revisit of its intricacies follows.   

Of concern to the players and agents concerning the loyalty clause (which has been upheld as being valid after the NFLPA filed a grievance against its validity) is the lack of the specificity of the loyalty clause language and how unintended comments by the player could be construed to be a violation of the clause.  

The original version of the clause, which appears in at least one player contract, is as follows: 

"If player makes any public comment to the media, including but not limited to the newspaper, magazines, television, radio or Internet that is derogatory or critical of club, club coaches, or club management, player shall forfeit and shall immediately return and refund to the club that amount of bonus herein provided." (emphasis added) 

Several issues arise from some of the words of this clause which could cause misinterpretation of the provisions, including the following: 

1.  "Public Comment."  Player makes a remark to a teammate in locker room that his position coach is "not organized."  The comment is overheard by a reporter and printed in paper the next day.  Is this a public comment made to the media (violation) or a personal comment to a teammate (not violative)?  If it is a public comment to media, is it derogatory and/or critical (violation) or merely an observation (no violation)? 

2.  "To Media."  Player, in the middle of the game, gets into argument with a coach and the dispute is seen by the television audience; player tells coach that "we stink and I am tired of it."  Even though comments are between player and coach, does the fact that media shows it and then later discusses in greater detail violate the loyalty clause language (i.e., critical comments about club)? 

3.  "Derogatory or Critical."  Player makes remarks during a post-game news conference that “the club’s offense is bad,” the club’s “coaching staff and players were not prepared,” “the cheerleaders are ugly,” and that the player himself "stunk."  Note, per the loyalty clause, all of these comments could be interpreted as critical or derogatory, even though they are true.  The lack of definitiveness in the contract language in what constitutes "critical" or "derogatory" leaves the club the opportunity to take an aggressive position in enforcement of the clause. 

4.  "Club, Club Coaches, or Management."  As noted earlier, the term "club" is very broad; it can include the player himself, teammates,  the ticket takers, parking attendants, trainers and even the guys who wash the jockstraps ("they shrunk my jock, those idiots").  Even though the comment about the club, coaches or management has to be a public comment to the media, no exception is provided in the language for comments made by the player directly to the offended individual which is heard by the media, or comments that may be made after a team official retires, is fired or becomes deceased ("you know. I’m glad the club fired Coach Blow after we went 1 and 15 - - he was terrible"). 

5.  "Forfeit and Immediately Return."  Player violates clause but does not have money; what is recourse of club (sue?)?  Player makes the remarks about club official after player is traded, released, and/or retires from club - - is provision valid?  Player makes a derogatory remark to media 15 years after retirement when the Bengals do not invite him to oldtimers day - - can club seek return of signing bonus?  Also note that this provision does not put burden on the club to provide notice to player that he has violated the clause; thus, player under these provisions is responsible to determine whether he violated the clause. 

6.  "That Amount of Bonus."  Several of the contracts signed by Bengal players mandate that the player must return a percentage of the bonus based on the year of the contract in which the violation occurs.  Thus, if violation occurs in the last week of year one of a 4 year deal, player has to return 100% of signing bonus; if the violation occurs in year two of 4 year deal, 50% is returned. A more equitable formula would be to define the refund amount via a formula involving the total number of regular season games over the entire contract period and the number of games that the player has played before the breach has occurred [example: if player violates clause after 16th game of 4 year (total of 64 games) contract he would have to return 16/64 or one-fourth of signing bonus, not 100% as is the case in existing Bengals language]. 

There have been several alternative versions of the loyalty clause used by the Bengals.  One version (the terms differing from the beforementioned version are noted by underlining) is as follows: 

"…if Player makes any public comment to the media, including but not limited to the newspaper, magazines, television, radio, or Internet that breaches Player's obligation of loyalty to Club and/or undermines the public's respect for the Club, Club coaches, or Club management under Paragraph 2 of the NFL Player Contract and Article LV, Section 6 of the Collective Bargaining Agreement (any of the above shall be referred to as a "Voluntary Breach or Failure to Perform"), upon demand of Club,  Player shall forfeit and immediately return and refund to Club that amount of bonus herein provided as follows: [Contract then stated a formula that if player violates in first year of contract, 100% of bonus returned, if in second year of 3 year deal, then 67% returned and if in last year 33% of bonus refunded]." 

Notwithstanding the modified wording, this alternate provision is as indefinite and confusing as the original provision used by the Bengals.  How do you ascertain the "obligation of loyalty" of the player to Club?  How do you determine (by poll, referendum?) if the comments of the player undermine the "public" (define "public": in Cincinnati, the U.S. and/or Congo?)  Is “respect” interpreted as the public liking the team and/or individual coaches/management personnel or just tolerating them?  The references to paragraph 2 of the NFL Player Contract (which section includes such definitive statements as the player "agrees to give his best efforts and loyalty to Club" - how is this determined? - and will conduct himself "with appropriate recognition of the fact that the success of professional football depends largely on public respect for and approval of those associated with the game” –what?) is also very general and can be misconstrued.  Section 6 of Article LV of the CBA includes such helpful language as "best efforts," "express criticism" and comments "which tend to cast discredit upon a Club, a player or any other person involved in the operation of a Club” (i.e., includes guy who handles ticket requests or person who lines the practice field?). 

The position of the Bengals in implementing the loyalty clause language is that they are justified in its usage so they can suppress outrageous and disruptive comments of players toward the club, its coaches and management.  Since an arbitrator has upheld the validity of the clause for player contracts, it’s only a matter of time before more teams attempt to adopt loyalty clause provisions in their particular player contracts. 

PLAYER FINES -- HOW PULLING YOUR SOCKS UP TOO HIGH CAN COST YOU

10 GRAND

POSTED APRIL 13, 2003

Besides the nuances of the salary cap and a myriad of other issues, the Collective Bargaining Agreement ("CBA") that governs the relationship between the players and the NFL clubs also creates the authority of both the Club and League to impose various fines upon the player in relation to his various on the field activities.  This week, I will discuss the fines that the League can assess (having too many cars or wearing ugly suits is not included):

Note the League fines listed below are minimums unless otherwise specified.  The League has the authority to impose other forms of discipline for a player offense, including an increased fine amount (i.e., greater than that listed below), suspension of the player or his  banishment from the game, if the circumstances of the act mandate greater punishment.

Violation                         1st Offense               2nd Offense   

Physical Contact With                   $15,000                                 $25,000

Game Official

Verbal or other Non-Physical       $15,000                                 $25,000

Offense Against Official

Flagrant Personal Foul                   $10,000 or higher, fine and/or suspension

                                                          determined by degree of violation

Fighting                                            $5,000                                   $12,500

Unnecessarily entering Fight

Area (active involvement)             $2,500                                   $5,000

Unnecessarily entering Fight

Area (no active involvement)        $1,000                                   $5,000

Excessive Profanity toward

Opponents, Game Personnel,

Fans, Media, etc.                             $5,000                                   $7,500

Taunting                                           $5,000                                   $7,500

Throwing Football into Stands     $2,500                                   $5,000

Foreign Substances on Body/

Uniform (i.e., Grease)                       $10,000                                 $15,000

[Note: Team management and coaching staff can also be fined for permitting foreign substance violation]  

Other Uniform/Equipment

Violation                                             $5,000                                  $10,000

In regard to the "Other Uniform/Equipment" League fines, the following rules are applied to each NFL player (Note: before the season each player receives a copy of the uniform rules both in narrative and picture version):

Jersey -- has to be tucked in. Extra short or jerseys cut above the waist are prohibited. Sleeves can not be torn or cut. 

Towels -- are limited to a maximum of 6 inches wide and 8 inches long.  Must be tucked into the front waist of the pants.

Exterior Socks -- must be a one-piece solid white from the top of the shoe to the mid-calf with the approved team color(s) going from the mid-calf to the bottom of the pant leg, which is to be pulled down below the knee.

Pants -- must be pulled down over the knees.  The knee area of the pants must not be altered or cut away.

Shoes -- Each team must have either all-white or all-black shoes throughout the team.  Note that tape on shoes and stockings must be transparent or a matching color.  (Note: even though proper taping of shoes is allowed by the League, this "spakking" of shoes could cause the player to violate the terms of a shoe endorsement he may have).

Sideline Appearance -- the only caps that players are permitted to wear on the sidelines is headwear provided by an NFL authorized supplier (currently Reebok).  Smokeless tobacco is also prohibited on the sidelines.

The NFL has hired various ex-players to attend games and assess violations of the beforenoted uniform violations.  For purposes of a player violating the cap and/or smokeless tobacco rules, the Game Referee is also authorized to use his judgment to determine whether a breach occurred.

A player can challenge the imposition of any fine and/or suspension imposed by the League through the use of an independent arbitrator to determine the sanction's validity (both in terms of whether an infraction occurred and/or the amount of fine/suspension).  Note once the amount of the fine is finalized (after a player appeal, if any), however, the general rule is that the player is liable at that time to pay the fine amount.

RESTRICTED FREE AGENCY: EVERYONE WRITES ABOUT IT BUT WHY DON'T THEY REALLY EXPLAIN IT?

POSTED MARCH 23, 2003

As NFL fans are aware, the NFL's free agency season is in full swing. In my previous article, I discussed the various types of free agency, including those types of players that are classified as Restricted Free Agents ("RFAs"). Generally, an RFA is able to sign with a new team (the "New Club") subject to his original team (the "Prior Club") having the right to match the principal terms of the New Club’s offer.  Based on the type of qualifying contract offer (tender) that the player’s original team extends to him before the free agency period commences, if the player’s original team decides not to match the terms of a contract offer extended by the New Club, the Prior Club may be entitled to draft choice compensation from the New Club. 

In past years, the movement of RFAs to new teams has been almost nonexistent. Since this year’s version of restricted free agency has involved an increasing amount of offers and changing of clubs by RFAs, the following is a general discussion of some of the issues relating to restricted free agency: 

1. What terms of the New Club's offer to the player must be matched by the player’s Prior Club? 

When a RFA receives an offer to sign a Player Contract from the New Club and the player decides to accept it, the Prior Club is given a document (known as the “Offer Sheet”) which states the "Principal Terms” of the New Club’s offer.  Of importance is the meaning of the phrase “Principal Terms.” Per the NFL Collective Bargaining Agreement, Principal Terms of the Offer Sheet are the only items of the New Club's offer that the Prior Club must match, and generally are defined as: (1) Salary (includes signing bonus, base salary, roster and reporting bonuses), (2) Likely To Be Earned Incentives (see my previous article in regard to incentives) that can be earned by the player, provided the total amount that the player can earn from the incentives does not exceed fifteen percent (15%) of the Offer Sheet Salary and (3) bonuses paid to the player for achieving various generally recognized League Honors (NFL All-Pro, various media honors, etc.).  It is interesting to note that Not Likely To Be Earned incentives contained in the New Club’s offer do not have to be matched by the Prior Club.  If, however, the Prior Club decides not to match the New Club’s offer, all of the terms of the New Club’s offer will be part of the contract between the New Club and the player (i.e., even the Not Likely To Be Earned incentives).  

2. What is time process involved when a player gives his Prior Club an Offer Sheet? 

Assuming that the Offer Sheet is submitted before the CBA-imposed cut-off date (which is 11:59 p.m. on April 19, 2003 for the 2003 League year), the Prior Club has seven (7) days from the date the Prior Club receives the Offer Sheet to accept the Principal Terms of the proposed new contract.  If the Prior Club decides to accept the terms of the Offer Sheet, it will provide to the player a “First Refusal Exercise Notice,” thereby mandating that the Prior Club and the player have entered into a new Player Contract, resulting in no movement by the player. Also note that the Prior Club does not have to wait the full seven (7) days to either accept or reject the terms of the Offer Sheet.  

3. Can a player sign more than one Offer Sheet? 

Even though a player can only have one signed Offer Sheet in existence at any one time, he can sign a new Offer Sheet if the previous one is revoked or withdrawn by the New Club, provided the written consent of the player is also obtained.  It should be noted that the Offer Sheet can be revoked or withdrawn as beforenoted even after it is presented to the Prior Club, provided it has not been already accepted by the Prior Club. 

4. When does the acceptance of an Offer Sheet not make economic sense to a player?

Some Prior Clubs are anxious to match the terms of an Offer Sheet if they believe that the terms of the New Club's offer allow the Prior Club to lock in the player for an extended period of time at a compensation level that is beneficial to the Prior Club's future cash and salary cap budgets.  Thus, even though a RFA has the ability to obtain offers from new clubs, he is under no obligation to accept the Offer Sheet, especially in a situation in which his present club will be able to retain the future services of the player at a lower price as compared to a situation in which the player decides to play out the year and then hit the open market as a Unrestricted (can you say 'Hello Mr. Coin Boy?') Free Agent.

NFL FREE AGENCY 101

(OR WHAT TO TALK ABOUT IF YOU REALLY WANT TO MAKE PEOPLE RUN AWAY)

POSTED FEBRUARY 15, 2003

As most NFL fans are aware, on February 28th the free agency period starts for certain players.  In discussing the movement of players, media reports constantly refer to players as unrestricted free agents (UFAs), restricted free agents (RFAs) and in some instances as exclusive rights (ER) players.  Free agency rights depend on the number of "accrued seasons" the player has at the time his contract expires. An accrued season is a season in which the player has been on "full pay status" for six (6) or more regular season games. In my ongoing attempt to provide you the reader with insight as to the intricacies of the NFL and its Collective Bargaining Agreement, and using some of the research materials provided by the National Football League Players Association (NFLPA), the following is a summary of the different free agent classifications.

Unrestricted Free Agent. Generally, a player with four (4) or more accrued seasons has unrestricted free agency rights. An unrestricted free agent may sign with any team. If the unrestricted free agent is not signed by June 1, his old club may offer him a contract with a 10% raise over his prior year's salary, and thereby obtain the exclusive right to re-sign him after July 15 if he has not signed with a new team by said date.

An UFA player will have his free agency rights restricted if he is designated as either a Transition Player or a Franchise Player. Per the NFL's Collective Bargaining Agreement, clubs can only have one Franchise Player at a given point in time. Most media outlets fail to note that there are two (2) types of Franchise Player tenders (which for purposes of the 2003 League year have to be made to a player no later than February 24th).  In the first type of Franchise tender, the player receives from his current club a contract offer for a one (1) year NFL Player Contract equal to the average of the five largest season salaries for players at the player's position during the prior League year, or 120% of his prior year salary, whichever is greater.  For example, a Franchise tender to a cornerback for the 2003 year will result in a one year contract equal to $5,962,000, said amount being the average of the five largest cornerback salaries in the 2002 NFL League year.  For 2003 Franchise tender amounts for other positions, see the NFLPA site. If the beforenoted type of Franchise tender is extended by the club, the player is still permitted to negotiate a Player Contract with any other club, except that if a new club signs the player, it must give his previous club draft choice compensation equal to two first round draft selections.

The second type of Franchise offer is usually more lucrative to the player since the one year contract offer is based on the average of the five largest salaries for Player Contracts signed for a particular position as of the end of the Restricted Free Agent signing period for the current League year. For example, a 2003 Franchise tender per this method dictates that the actual one year contract amount for 2003 would not be determined until Restricted Free Agency ended on April 19, 2003, which usually causes the average five salaries that are used to determine a particular position's Franchise number per this second method to be higher when compared to the Franchise tender method per the first method previously discussed (i.e., previous year contract values are used), since contract values increase each year. Note that if the second type of Franchise method is used, the player can not sign with another club while he has this type of Franchise designation.

If a club does not want to designate an unrestricted player a Franchise player, it still can attempt to restrict his ability to sign with another team by designating him as a Transition player. This designation (which also has to be made by February 24th for the 2003 League year) requires the player's current team to offer the player a one year guaranteed contract equal to the average of the top ten salaries at his position for the previous League year.  Even though the player can sign with another club while he is designated a Transition player, his original club retains a right of first refusal and can match any offer from any new club.  If the player does sign with a new club and his original club elects not to match the new offer, the original club does not receive any sort of compensation (i.e., draft picks) from the new club signing the player.

Restricted Free Agent. A player with three but less than four accrued seasons can seek offers from other clubs after his contract expires, but he generally has only approximately sixty days to do so (this year the signing period is February 28th until April 19th). If the RFA gets an offer from a new club, his old club must choose between matching it and retaining him, or letting him go to the new club in return for draft choice compensation (note in some instances, however, the signing by the new club of an RFA who entered into the NFL as an undrafted player may not result in the new club having to provide draft choice compensation to the original club). The draft choice compensation varies depending upon the offer the old club gives the player prior to his becoming a restricted free agent.

In my column next week I will discuss the nuances of Restricted Free Agency in greater detail.

Exclusive Rights Player. A player with an expiring contract who has less than three accrued seasons can only sign with his old club, provided that he is offered a one-year contract (i.e., tendered before February 28th this year) at the minimum salary for the upcoming year. If the exclusive rights free agent gets no such offer, he is completely free to sign with any team.

NFL MINOR LEAGUE FOOTBALL:

HAS ITS TIME COME?

POSTED JANUARY 14, 2003

Recently, some NFL management officials have strongly suggested that the NFL Europe experiment may be ending.  Factors such as high costs of operating teams in Europe, inconvenience of scouting games in person and the increased risk of injuries for some players when they make the jump from the end of the NFL Europe season until the start of NFL training camps (approximately 100 days) could cause the NFL Europe format to be strongly reconsidered after the 2003 NFL Europe season. Based on the possibility the NFL may eliminate the European vacation for some of its players, it may be time for the league to implement its own minor league system.

Sports fans are familiar with the minor league format of baseball and hockey.  To a less organized degree, NBA teams have utilized the Continental Basketball Association and foreign leagues to supplement their teams.  Except for the rare input of players from the Canadian Football League or Arena Football, and excluding the may-soon-be disbanded NFL Europe, NFL teams do not have a formalized affiliation with another professional league in terms of the development of prospects.  Based on a format similar to that used in Major League Baseball and the National Hockey League, the following is a framework of a NFL Minor League system ("NFL Minor"):

Teams: NFL Minor would be composed of 8 teams, consisting of two 4 team divisions. 4 NFL clubs will have a direct relationship with one of the eight particular NFL Minor teams (i.e., 32 NFL teams, 4 NFL clubs per NFL Minor team.) Each NFL Minor club would be owned by the NFL, and be located in those cities (as determined by the NFL) that do not have a regular NFL club nor a perennial NCAA Division I college football power.

Allocation of Players: Each NFL club would allocate, after the completion of its NFL training camp, 15 players from its initial training camp roster to its NFL minor affiliate.  There would be no restriction on age or years of NFL experience for allocated players.

Management/Coaches of NFL Minor Clubs: To be determined solely by the NFL.  The advantage of such a system would be the training of management and coaching personnel for future NFL opportunities, and accelerated implementation of the NFL's affirmative action program.

Roster Determination: NFL Minor training camps would open the Saturday before the first game of the regular NFL season (i.e., around Labor Day).  From the initial 60 man roster (i.e., each of 4 teams allocates 15 players), a final 50 man roster would be finalized within 21 days after the beginning of the NFL Minor camps (which is approximately the same day after the 3rd week of the regular NFL season).

Player Salaries: Any player who is allocated to NFL Minor by his original NFL club will receive $3,000 per week (which is lower than the general $4,000 a week for NFL practice squad players and more than the approximate $15,000 total that NFL Europe players make).  Note that any NFL Minor player who is elevated to a regular NFL club during the season (see below) would be paid the regular NFL minimum salary ($225,000 for 1st year players, etc.) while on the regular NFL club.

Player Movement: Each NFL club would be allowed to bring up one of its allocated players from its NFL Minor affiliated team without said player being subject to a claim by any other NFL club, up to a maximum of 5 times during a regular NFL season.  Any attempt to bring up a player after the "5 time rule" is satisfied will not be automatic and will cause said player to be subject to claim by any other regular NFL team via a waiver system similar to the NFL. 

Note that when a NFL Minor player is elevated to his NFL Club, the club will have the option to allocate to its NFL Minor affiliate any player that it has to release to make room for the elevated player, provided that the released NFL player is not claimed on waivers per the NFL waiver system (if applicable).  Any NFL player allocated to NFL Minor during the NFL regular season will earn the beforenoted $3,000 week NFL Minor salary, unless a different amount was negotiated in the allocated player's regular NFL contract.

A team's allocated NFL Minor player can be claimed by another NFL club for activation to the claiming team's regular NFL roster at any time, subject to the original NFL club, when provided notice of said claim by the rival club, to preclude said claim by electing to activate the player in question to its NFL roster (note the beforenoted "5 time rule" will not be applicable in this situation thereby allowing the original NFL club to be able to retain its NFL minor player even though it has already had 5 call-ups to the regular NFL team to date).  If, however, a NFL club elects to activate to its regular NFL roster another club's NFL Minor player and the original NFL club does not elect to activate the same player to its roster, the new (claiming) NFL club must transfer its 7th round pick in the upcoming NFL Draft to the original NFL club (or if the claiming club does not have a 7th round pick in the upcoming Draft then it must transfer its 6th round pick, or if it doesn't have a 6th round pick then its 5th round pick . . . ).

Games: Unlike NFL Europe, NFL Minor games would be played during the same time as the NFL regular season, except that a 12 game schedule would be implemented and all games would be played on Saturday nights.  The intent of this type of format is that fans would be more receptive to an NFL-affiliated league if it were played during football season and at a time (Saturday night) that does not conflict (usually) with college football games.  Upon the completion of the NFL Minor schedule (which would coincide with the ending of the regular NFL regular season schedule), a play-off format would involve the top 2 teams in each division playing in the first round of the playoffs (#1 seed in East plays #2 seed in West, etc.), with the NFL Minor championship being played the following week.  Note the NFL Minor playoffs would be on Friday nights since the NFL clubs would have playoff games on Saturday during the same time period.

Completion of NFL Minor Season: All allocated players still on the affiliated NFL Minor team would count against the NFL club's 80 man roster for the next NFL season.  Any NFL Minor players released during the subsequent off-season would be subject to the regular NFL waiver rules.

The advantage of the NFL Minor system is that it would allow a NFL club to get a "second look" at a player that does not initially make its regular NFL club without actually having to relinquish that player's rights for any such players could be allocated to the club's NFL Minor affiliate.  Also, by having the teams play during the regular NFL season and in the U.S., an NFL club would be able to shuffle players between its minor league affiliate and the NFL club in a manner similar to the system used by MLB and NHL clubs.  Unlike the Canadian and Arena Football Leagues, the NFL Minor player would also be playing with the same set of rules and conditions that are used in the NFL. Finally, by locating NFL Minor teams in U.S. cities that would be identified by the NFL as being receptive to NFL-affiliated football, the operating cost of the league should be less that the NFL pays to maintain NFL Europe.

SIMPLE ANSWERS TO COMPLEX QUESTIONS ABOUT THE AGENT WORLD

POSTED NOVEMBER 26, 2002

Many of us, when meeting people in a social setting for the first time, are sometimes asked about the career path we have taken.  If you are a doctor, people inquire about what type of medicine you practice.  If one is a teacher, the next question usually concerns what courses you teach.  When a person tells someone he is a sports agent, however, a myriad of questions usually follows -- after the mandatory inquiry concerning the agent's life being similar either Jerry McGuire and/or Arli$$ (as in "Oh, you must be like Arliss?" --  this question itself being confusing because you do not know whether the questioner sees these fictional characters as intriguing individuals or dorks).  The following is a list of questions that yours truly had been peppered with over the years (some serious, some funny) and my corresponding answers:

When can an agent contact college football players?

Generally, per NCAA guidelines, an agent can contact a student-athlete at any time.  There is no prohibition by the NCAA of meeting with a college football player who still has eligibility remaining and/or sending the player written information about the agent's business.  Some schools, however, per their own policy, attempt to forbid players from meeting with and/or having any contact at all with agents up thru their final college game (which includes any Bowl games).  Even though a school has the discretion to implement and enforce this "no contact" policy (reprimands including suspension, extra conditioning, negative comments to pro scouts, etc.), the reality is that if a player wants to have contact with an agent while he is still playing college football he will do so.

Note the distinction between "contacting" a player and "providing something of value" to a player.  Per various state laws (note that for some bizarre reason not all states have agent regulation statutes) and NFL Player Association regulations, an agent can not give a still eligible player (or a member of his family or acquaintance of his) anything of value.  The anything of value limitation includes the obvious (cars, money, etc.) but also is violated if the agent provides transportation to a player or his family, buys them a meal or provides them tickets to a sporting event while the player still has remaining college eligibility.

Can an agent run onto  the field during an NFL game like Tom Cruise did in Jerry McGuire?

No -- unless he is being chasing by another agent because he stole the guy's client.

What is the maximum amount that an agent can charge a client in the NFL?

Per NFLPA guidelines, an agent can charge a maximum of 3% of the total gross compensation received by the player for his playing contract in a given season.  Due to increased competition between agents, however, this fee percentage is sometimes decreased to as low as 1%.  Note, however, that the agent can charge an additional percentage for endorsement or appearance income he procures on behalf for the player (usually 10% to 15% of the gross amount received -- there is no limit on this percentage).. In addition, the agent is allowed to charge the player for expenses (i.e., travel. lodging, meals) directly attributable to his services for the player and can also collect any fees that the agent incurs incident to tax preparation, legal or other services for the player.  Some agents, however, in order to gain a competitive advantage do not charge their client for expenses and/or for the beforenoted ancillary services.

Like Arli$$, does every agent have his own private plane?

No -- unless you count the one he keeps by his desk that he made from the model kit when he was 12.

Are agents always allowed in the press box and/or locker room of the NFL club?

This varies -- some clubs are very receptive to an agent and allow him a press box pass and access to the area around the locker room (getting in the locker room is another story).  Other clubs, however, are not so kind and treat the agent like an unwanted guest from the planet Jupiter (unless they are trying to sign his star client to a new contract).  It should be also be noted that while in the press box the following are considered No Nos: cheering for your client, yelling that the coach of the your client's team "sucks" and/or  telling the team's public relations intern that you "want to eat her leg."

In Jerry McGuire, Rod Tidwell (Cuba Gooding, Jr.) tells Jerry (Tom Cruise) to "Show me the money! -- does this really happen in real life?

No -- it's too corny.  But statements like "I'm going fire your ass if you don't get me a great contract" or "My 19 year old girlfriend says you're stupid" are uttered occasionally.

Who do I contact if I am interested in becoming an NFL agent?  What education requirements are there?

Contact the NFLPA at 800-372-2000 for application materials or visit the NFLPA site at www.nflpa.org.  Generally, all new NFL agent applicants must have a college degree.

Is it true that NFL agents have to wear a lot of gold, open neck shirts that are really tight and 12 piece suits?

No -- you must be confusing us with the basketball agents.  A recently adopted "agent protocol" requirement, however, is that all NFL agents have to talk on their cell phone at least 54 minutes each hour in a really, really loud voice ("Tell the GM to stick that 20 million up his a--!").

Agent Day: Recognized By Some Schools, Ignored By Many

POSTED OCTOBER 15, 2002

Imagine that you are once again a senior in high school.  You want to go to college but are not really sure of how to handle the entire process.  You can discuss it with your parents, but since they really don't have the time or expertise to keep up on all the inner workings of the college admission process, you think it would be in your best interest if the school guidance counselor assists you in evaluating potential college choices. Can the school official help you in reviewing the college information being sent to you by each school? No, he tells you, it is not in his job description.  Can the school official assist you in interviewing representatives from colleges that you are considering? Once again, can't be done - it is not offered by your high school.  OK - you'll make it even easier - why doesn't the high school school invite colleges to your school ("college day") so all people who are interested in going to college will have an easily accessible (and school monitored) forum to meet with institutions that will influence their future educational objectives?  "Sorry, we don't do that."

The beforenoted hypothetical - a student being thwarted by school policy in his attempt to learn more about his future "partner" in the educational world - is very similar to the policy of most NCAA schools in regard to the assistance (or lack of) they provide to student-athletes who are trying to pick an agent for representation.  Most schools treat the Agent as a nonbeing, one who if they ignore will go away.  Would not it make more sense to have Agents attend a school-sponsored forum so that the school could monitor the interaction of the agents with its athletes who have the capability to compete on the professional sports level?  While such a setting would not be fool-proof in its attempt to monitor all the acts of all Agents, it would allow schools to assist their athletes in the initial screening of those individuals that are offering representation services - and also to monitor what information and representations are being offered o the students.  I have attended these "Agent Days" at such schools as North Carolina, North Carolina State, Cincinnati and Tennessee.  Unfortunately, at most other schools at which I recruit the second coming of Godzilla is more apt to occur than agents being invited to go on campus.

As a prerequisite for attending an Agent Day at a college, an Agent is usually required to file a questionnaire with the Compliance Department of the school, the questionnaire requesting data concerning the general background of the Agent's business, whether any previous clients have ever made a claim against the Agent, how the Agent bills his services and a list of client references.  If he is then invited to Agent Day, the Agent is then usually required to provide the school with a list of senior athletes he desires to meet.  The school schedules meetings with those students who will meet with the Agent, the meetings usually taking place on a Sunday afternoon during the season at a campus (classroom) location.  At the meeting, which can be attended by the athlete's parents and/or other confidants, the Agent is allowed generally 30 minutes to make a presentation of his services.  Subsequent to the meeting, most Agents then attempt to keep in touch with the player via telephone until the college season (and the player's college eligibility) ends, at which time the player is allowed to formally commit to the Agent for representation.

The advantages of the Agent Day process have been previously noted: the school can initially screen agents, it can supervise their actual meetings with players and also provide any assistance on-site for questions an athlete may have when meeting with an agent in such a forum.  The system is not all-encompassing, however, due to the fact that agents (and athletes) have the unlimited ability to evade any school supervision of the representation recruiting process.

When I have asked some school officials why they do not sponsor an Agent Day I have been given a myriad of bizarre and "they obviously don't get it" responses:

 - "We don't want Agents on campus."

- "We don't have the time."

- "What's that?"

- "We tell our players they don't need an Agent."

- "The Agents will talk to our underclassmen if we let them on campus."

And my one, all-time favorite: "It's not allowed by the NCAA."

Oh, tell that to the schools that have been wisely doing it for years now.

Proactive Versus Reactive: What Type of Agent Do You Want?

POSTED SEPTEMBER 19, 2002 @ 10:25 PM

The world of an Agent is one in which the results of various issues that confront your client sometimes are directly influenced by whether the Agent is reactive in his response to the matter at hand or, in comparison, the Agent is proactive in dealing with the particular issue.  The following are real-life examples of an Agent (we call him Don) and his manner of response to certain situations off the field that his profession athlete clients faced:

SITUATION: Agent receives phone call from Client telling him that Client got into a "little trouble."  Agent, who can see another sleepless night coming, inquires about the "little problem."  Client explains that he went over to see his girlfriend (who he has known for about 5 days) at 5 a.m. (as in 5 in the morning) and discovered, after he broke the door down,  her old boyfriend sleeping in girlfriend's (?) bed.  Agent asks what happened next and is informed that Client ran into bedroom and accosted old boyfriend in the sack (during all this time girlfriend is screaming "it doesn't matter" - kind of like "it doesn't matter I screw a lot of guys when I date you").  Old boyfriend, acting like a 3 year old, pulls bed comforter over his head when Client runs into room (did he think somehow that made him invisible?).  Client then tells Agent that he punched the old boyfriend in the arm - through the comforter.  Agent, breathing a sigh of relief, asks Client "is that all?", figuring that a single blow to the arm would only cause a bruise (if that).  Client answers that there is a little more to the story - they had to call an ambulance -   because the one punch broke the old boyfriend's arm.  Agent makes note to himself never to piss off Mr. Hercules.

How the Proactive Agent Reacts to This Situation: he immediately finds a criminal attorney to meet with the client, and also confirms if a police report was filed.  In addition, he prepares for a possible civil lawsuit being brought by the victim for damages by hiring a litigator on behalf of the client, who should immediately get statements from the Client and Ms. Va-Voom, the girl who caused all this commotion.  Note for most legal matters, the Client pays the fees involved; these costs are not included in the representation fee that the Client pays the Agent.  Finally, the Agent should strongly suggest that the Client find a new girlfriend - but not tick off the one involved in this mess since she is a witness to all that occurred (want to keep her on our side).

How the Reactive Agent Reacts to This Situation: he calls Don King to see if he needs any other fighters.

SITUATION: Agent receives phone call from Client.  Client tells Agent he has a "little problem" (there is a recurring pattern here).  Agent, who has been through this drill many times, takes out a pad and prepares for the worst.  Client tells Agent that he was at a local bar having a few drinks with his teammates when another teammate walked in with said teammate's girlfriend, who is also a stripper (she had clothes on that night though).  Girlfriend, who was drunk and dancing on tables (don't they get enough of this routine at work?), comes over to Client and tells him that she "wants to introduce" her friend to Client.  Client says he is not interested and turns away.  Stripper/Teammate's girlfriend storms after Client and yells at him "Are you gay?".  Client, ever the man, says "no" and proceeds to put his hand on stripper's thigh - so as to prove he is not gay (smart move).  Stripper yells for all to hear that "he has his hand on my pu---" (bad word for crotch) and threatens legal action.  Client is asked to leave by Bar bouncer and goes home to relay this story to Mr. Agent. Client also tells Agent that he is "going to kick his teammate's ass at practice tomorrow" since he girlfriend caused Client all this trouble.

How the Proactive Agent Reacts to This Situation: he gets statements from Client and his teammates as soon as possible in regard to what exactly happened so as to prepare for any legal action that may be filed.  Agent also may review with Client the finer points of Client not putting his hands on the thighs of females he does not know. 

How the Reactive Agent Reacts to This Situation: he finds out where the Stripper works for an on the job review of the situation.

SITUATION: Client calls Agent and says he is having a little trouble "getting his truck" out of the shop and can Agent help.  When asked to elaborate Client tells Agent that his truck is getting some detail work done  - to the tune of $28,000 worth (isn't this the price of buying a new truck?) - and that it has been 6 months since the truck was sent to the shop.  Agent inquires about Client's use of the word "sent" and is told that the Client shipped the truck to California for the work to be down - at an extra shipping cost of $2,500.  When asked why the work was not done in the state in which the Client lives (or even on the same coast) the Client tells the Agent "because my teammates said the car shop was good." Oh. Client says he does not have the money to pay off the work done and can Agent lend him "10 Grand." 

How the Proactive Agent Reacts to This Situation: he calls the repair shop and asks for a breakdown of the bill and whether  the Client signed a contract for the work to be down.  Also, the Agent tries to negotiate down the price of the work.  In addition, he contacts one of his banking buddies and tries to secure a loan for the Client (the success of which will depend on the client's credit worthiness and his stature in the league).  As a last resort, the Agent can lend the Client the coin - a tough choice to make.

How the Reactive Agent Reacts to This Situation: he asks the Client if he can borrow the Ride when he gets it out of hock.

NFL Transaction Terminology: Professor Einstein, It's Your Turn

    POSTED SEPTEMBER 2, 2002 @ 6:25 AM 

This holiday weekend is the time of the NFL year when fans are confronted with a variety of terms as they try to decipher the myriad of transactions that NFL teams used to get down to yesterday's 4 PM EST 53 man cut down limit.  In an attempt to provide you the reader a brief description of some of the terminology that frequently arises at this time of year (and with credit to the resources provided by the NFLPA), the following short primer is noted:

CUT DOWNS/SQUAD SIZE. For the 2002 season, each NFL club had to reduce its roster by 4 PM yesterday (September 1) in terms of its Active/Inactive (i.e., 53) list. Immediately prior to kickoff each week during the regular season, clubs must establish a 45 player Active list from their 53 man Active/Inactive roster, and identify one additional player on the Inactive list as a 3rd quarterback who can enter the game only if the other 2 quarterbacks can not play.

WAIVER WIRE. Generally, any released player with four (4) or less credited seasons was placed on waivers at 4 PM yesterday.  The Houston Texans will have the priority (first) right to claim any player put on waivers per yesterday's cut down (and will maintain this priority right for all waiver-eligible players thru the 3rd game of the 2002 NFL season) provided they submit a claim for the particular player by 4 PM EST today (September 2nd).  In addition, any of the other teams can submit claims for any of the recently waived players (note a released player with more than 4 credited seasons is deemed to be "released" rather than "waived").  When a player is claimed by more than one team (assuming the Texans do not put in a claim for the player), then the team with the worst record in the 2001 NFL regular season will be awarded the player (and assume the provisions of his contract).  If the 2001 records of two or more clubs who claim the same player are identical, then additional tie breakers are used to determine to which team the player is allocated.  Note if a team is awarded a player, then the club will most likely have to release a player currently on their roster in order to not exceed the previously noted 53 man roster limit.

PRACTICE SQUADS. Today (September 2nd), after 4 PM EST, each club may establish a Practice Squad of no more than five (5) players who are free agents and who did not dress for more than eight (8) regular season games during their only accrued (i.e., on the 53 man roster for at least 6 games) season.  The minimum salary for a Practice Squad player is $4,000 per week (a higher salary can be negotiated), including playoff weeks. In addition, a player under contract to a club as a Practice Squad player is completely free to sign a contract with another NFL club during the season in order to be on the second club's Active/Inactive (i.e., 53 man) list. If another club signs a Practice Squad player to its 53 man roster it does not have to provide any sort of compensation to the player's former club but it generally must keep the player on the 53 man roster for at least 3 weeks, thereby mandating that he earns in 2002 the minimum first year salary for said 3 week period ($225,000 prorated weekly). Also note that a team can add and release players from the practice squad as often as it desires and the five (5) man limit does not have to be maintained.

PHYSICALLY UNABLE TO PERFORM (PUP). A player who fails his club's pre-season physical at the start of training camp may be placed on the club's Physically Unable to Perform (PUP) list.  A player on PUP is eligible to receive his salary, but is ineligible for games and practices; he is, however, allowed to attend team meetings.  For a three (3) week period beginning with the day after the club's 6th regular season game and ending on the day after the 9th regular season game, a player on PUP may practice with his club and/or be restored to the club's 53 man roster (provided it is done before the day after the 9th regular season game).

RESERVE/INJURED. A player who suffers an injury in practice or game after passing his club's pre-season physical may be placed on the club's Reserve/Injured list if the injury renders him physically unable to play football.  A player will continue to receive his salary (usually the lower of the split salary stated in the contract - $130,000 for 1st year players in 2002) while on the Reserve/Injured list, but he is prohibited from practicing with the club for the remainder of the season (attending team meetings, however, is allowed).

NON-FOOTBALL INJURY OR ILLNESS (NFI). A player who fails the pre-season physical of his club because on an injury unrelated to football (i.e., plays basketball and gets hurt) may be placed on the Non-Football Injury or Illness (NFI) list if the injury renders him unable to play football.  A player will not be entitled to receive his salary on NFI (but the club can elect to pay him) and will be prohibited from practicing with the club until the three (3) week period beginning the day after the club's 6th regular season game (similar to the format previously discussed for PUP).  If the non-football related injury occurs after the player passes the club's preseason physical (i.e., cuts his leg while mowing his lawn), the player may also be placed on NFI but is not able to return to practice or play with the club at any time during the season.

The quiz for all this will be sent to you in the next few days.

The Contract Escalator - A Ride Up The Pay Scale

 by Profootballtalk columnist Ron Del Duca

    POSTED AUGUST 8, 2002 @ 5:55 PM

Readers of this column have previously become familiar with the nuances of how incentives (based on either individual performance and/or team performance) can be effectively used in both rookie and veteran contracts to increase a player's pay in the particular year in which the incentive is earned.  Incentives can be used, however, to also increase a player's pay in future years through the use of a "escalator" (also known as a "rollover" or "bump up") provision.  Generally, an escalator provision provides that if a player (or the team) attains a certain statistical objective in the current year, the player's compensation in subsequent year(s) will also be increased by the amount of the current year incentive.  

EXAMPLE: Player X, a veteran free agent Defensive Tackle, is being actively pursued by Team Y, which has been previously burned on several free agent contracts (i.e., some previous players got big signing bonuses and ended up being busts).  Player and Agent believe that if Player starts for Team Y his compensation should average $2 million a year. Team recognizes this fact but tells Player's Agent that due to Player's age and somewhat previous inconsistent play Team is not willing to initially agree to a 3 year, $6 million contract for Player. Team Y offers Player  a 3 year contract, with a $1.5 million signing bonus and base salaries $750,000 in Year 1, $1 million in Year 2 and $1.25 million in Year 3.  The total value of the deal is $4.5 million ($1.5 million to sign plus total base salaries of  $3 million).  The deal is not acceptable to Player since it only averages $ 1.5 million per year for the three year term.

ANALYSIS: The use of a contract escalator would be helpful in trying to achieve the Player's objective of averaging $2 million a year if he is a starter and also enable the Team to minimize its economic risk in the event Player's performance is lacking.   For example, assume that in the previous three years that the starting DTs for Team Y averaged 70% or more playtime per regular season game. By restructuring the beforenoted contract offer of Team Y by adding incentives and escalators, the Agent can enable the Player (if the Team agrees with the structure) to average at least $2 million per year if the Player is a starter.  Given the fact that previous starting DTs for Team Y played at least 70% of the time in the regular season, Agent can suggest that  Player should receive an additional amount if he plays at least a certain percentage.  The following proposal is noted:

For each season, Player shall receive the one of the following amounts based on his playtime during the regular season (assume Player played only 52% in the previous season due to injury): 

60 to 69% = $250,000

70 to 79% = $500,000

80% or more = $750,000

In addition, if one of the beforenoted amounts is earned by the Player in a given contract year, then that amount shall also be added to the Player's base salary in all subsequent contract years (i.e., this is the escalator provision).

Assuming Player participates in 75% of the defensive plays during the regular season of Contract Year 1, his compensation would be as follows:

Year 1 - $1.5 million signing bonus plus $750,000 salary plus $500,000 incentive = $2.75 million.

Year 2 - Base salary of $1 million is increased (i.e., escalated) by $500,000 so it is now $1.5 million.

Year 3 - Base salary of $1.25 million is increased by $500,000 for a new total of $1.75 million.

New (potential) Total Compensation for the 3 Year Deal:     $1.5 million signing bonus plus $750,000 salary plus $500,000 Year 1 earned incentive plus new $1.5 million Year 2 salary plus new $1.75 Year 3 = total potential compensation of $6 million, which is an average of $2 million per year over the 3 year term (or $2.125 million average for the first two years of the deal).

By structuring the deal so that the Player would receive not only the incentive amount in the year earned but also the benefit of the incentive amount in subsequent years of the deal, the Player is able to earn the $2 million per year objective (assuming he is not released) and the Team minimizes its risk in terms of the amount of signing bonus (i.e., nonrefundable) money it gives to the Player before he proves his worth on the field.

Also note that per the proposed contract terms, Player can achieve even greater financial award if he plays more than 70% in Year 2 of the deal. Assuming a playtime amount of 77% in Year 2, the incentive amount of $500,000 would not only be received in that year but the Year 3 base salary would now be $2.25 million ($1.25 million original amount plus $500,000 escalator from Year 1 and $500,000 escalator from Year 2).

Ron Del Duca is a sports attorney and NFL agent who represents various NFL, NHL and professional tennis players.