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Thread: READING: Are there any books that discuss contract negotiations?

  1. #1

    READING: Are there any books that discuss contract negotiations?

    I am looking for a book that explains the art of making a deal. Perhaps two books. One from the agent side, one from the front office side.

    I was reading the thread about Willie McGinest about to be released and how McGinest described the final year of his contract as a ghost deal:

    ''We didn't think they were ever going to pay me $7 million or $8 million next year," McGinest said from his home in Los Angeles. ''This last year [2006] was a ghost deal. It wasn't meant to stick. That's why we escalated the numbers the way we did. It would be great if they exercised it and gave me $7 million or $8 million, but I knew if it came to it, they'd renegotiate, release me, or release me and then do a new contract."
    I have a rough understanding of how signing bonuses are amortized, likely to be earned incentives are calculated, etc. However, I don't quite fully understand the logic behind backloading deals like these when it's clear they will have to be restructured. I am sure there are many fine points that go into crafting a good deal from each end {{Player-Agent Side, Front Office-Side}}

    If someone can point me in the right direction, I would appreciate it,

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    Paging Flowtrain....Paging Flowtrain.

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    Quote Originally Posted by Brain Hemorrhage
    However, I don't quite fully understand the logic behind backloading deals like these when it's clear they will have to be restructured.
    I don't have a book recommendation, but here's a response to the issue of backloading money that isn't expected to be paid out. In the case of McGinest, his final year included a $3.5M roster bonus and $3.5M salary that wasn't expected to be paid.

    You're correct that all parties stand to gain.

    Team Perspective: When a team builds "ghost" years into the back end of a contract, they do so because it helps them keep down signing (or restructure) bonus proration by amortizing the bonus over a greater number of years. A $10M bonus counts $2.5M/year if the deal is 4 years, but build in extra a ghost year and it's now only a $2M/year hit.

    Player Perspective: When a large roster or option bonus is built into the middle of a deal, it forces the team to (1) cut the player, allowing him to cash in again as a FA, or (2) renegotiate the deal. Consider Ty Law, who used his roster bonus to give himself a 1-year deal with the Jets, before getting set to cash in again in 2006. In McNair's case, we saw a $50M option bonus included in his deal that the Titans never intended to pay. McNair's camp included the clause in order to force the Titans back to the table in 2006, not coincidentally, at a time when the Titans would lack leverage.

    In this case of McGinest (and Troy Brown last year), there's not a whole lot to gain for such an old player who lacks leverage. But assuming they couldn't get a better original deal from the team, they don't have much to lose either.

    Agent Perspective: Aside from serving the players' interests, agents also love these dummy years as well. Funny money, whether it's in the form we're discussing here, or straight backloaded salary, helps boost the overall "value" of the contract that gets reported by the media (even if the value isn't realistic). This is a good marketing tool for recruiting players.

    Players are well protected by their agents. But who's looking out for the players when they're actually selecting their agent? It's a vulnerable time for players (especially rookies) and chances are that when an agent boasts about the "value" of contracts he's inked, the player is more likely to simply be impressed, than to do his homework and determine the true value of those deals.

    Everyone wins.

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    Sometimes praying does work!

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    Hmmmmm...I thought you paged him.

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    Ucc Or Business Law Books Discuss Contracts

  7. #7
    Quote Originally Posted by RICOH
    Ucc Or Business Law Books Discuss Contracts
    UCC = Uniform Commercial Code, right? If so, why a book about the UCC?

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    Just hit the market

    All you want to know about NFL monies by Flowtrain

  9. #9
    Quote Originally Posted by Brain Hemorrhage
    UCC = Uniform Commercial Code, right? If so, why a book about the UCC?
    bump... I am ordering "Behind Closed Doors" by Bob Woolf, one of the world's first big-time sports agents, off Amazon Marketplace for $1.50 hardcover. We'll see if it is any good. I probably let you all know if it is worth the cost of shipping by posting in Football 101 section of the message board when I am done reading.

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    Then you can keep Flowtrain honest

    Quote Originally Posted by Brain Hemorrhage
    bump... I am ordering "Behind Closed Doors" by Bob Woolf, one of the world's first big-time sports agents, off Amazon Marketplace for $1.50 hardcover. We'll see if it is any good. I probably let you all know if it is worth the cost of shipping by posting in Football 101 section of the message board when I am done reading.

    Then you can keep Flowtrain honest.

  11. #11
    Quote Originally Posted by RMJK
    Then you can keep Flowtrain honest.
    What are all the references to flowtrain about???

  12. #12
    bump... curious

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    Flowtrain is probably the most knowledgeable football person on this board. He's has a very good understanding of the NFL, the Jets, the salary cap, etc. and he has always been willing to share his knowledge with everyone here.

    Some people have accused him of being Terry Bradway

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