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OT: Andy Dalton Cashes In

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Posted: 08/04/2014 10:47 AM

OT: Andy Dalton Cashes In 


Dalton signed a 6 year, $115M deal. It's likely structured similarly to Kaepernick's, as the Bengals explicitly made Kaepernick a comp:


When Bengals owner Mike Brown recently said that quarterback Andy Dalton was worth a new deal similar to the one 49ers quarterback Colin Kaepernick recently inked, he wasn't kidding around. On Monday morning, ESPN's Adam Schefter and Adam Caplan broke the news that the Bengals and Dalton had agreed to a new six-year, $115 million contract extension that will ostensibly keep Dalton in Cincy through the 2020 season. Kaepernick signed a seven-year, $126.97 million extension on June 4.

Of course, all NFL contracts have numerous escape clauses for the teams involved, and though the terms of the deal have not yet been released, it's likely that the Dalton deal is like Kaepernick's in that the guarantee will be low (Kaepernick's guarantee was only $13.073 million at signing), and it will be more of a "pay-as-you-go" deal in which the team can cut loose from the contract down the road if Dalton doesn't measure up.


Link

There's also some analysis of Andy Dalton at the link.
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Posted: 08/04/2014 12:00 PM

Re: OT: Andy Dalton Cashes In 


Russell Wilson is sitting back saying OMG I'm going to get paid.  0-3 6 INTS in the playoffs and Dalton is awarded with a massive contract.  WOW is all I can say.  IMO, he's an average QB with a weak arm and makes some horrible throwing decisions.

LoneStar Niner
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Posted: 08/04/2014 12:29 PM

Re: OT: Andy Dalton Cashes In 


Russell Wilson could also be looking at the recent trend and going "oh, man.. looks like 1 year guaranteed, plus a string of additional 1 year deals is the new norm." Several sources are confirming Dalton's deal is structured like Kaepernick's, with only the first $17 million fully guaranteed. I'm curious to see if he has "de-escalators" too; I doubt it, but I read one tweet say "structured exactly like Colin's deal." tongue
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Posted: 08/04/2014 1:59 PM

Re: OT: Andy Dalton Cashes In 


I still wonder where the alex smith contract situation will end up...

"You are either getting better or you are getting worse; you never stay the same."

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  • barrance
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Posted: 08/05/2014 10:05 AM

Re: OT: Andy Dalton Cashes In 


One of the big differences between Dalton's contract and Kaep's contract is the absence of the injury guarantee.  Kaep's money is fully guaranteed for injury, Dalton's is not.  So in a hypothetical situation, both these guys go into 2014 and suffer career ending football related injuries, Kaep gets his injury-guaranteed salaries for 2014-2018, which total $61mil.  Dalton as I understand it however, only gets the $18mill from 2014 and possibly nothing else, as his 2015 salary comes in a form of a $4mill roster bonus and $3 mill base.  The Bengals could simply cut him and he'd be out of luck.  

In order to get the injury guarantee, Kaep was required to pony up $2mill of his own money to purchase an insurance policy of $20mill payable to the Niners in case this happens, which in effect lessens the financial hit the Niners take.  They would pay him $61mill in injury guarantees, but they get $20mill back from the insurance.  

Florio at PFT is harping on this issue like Kaep would have been better off buying a policy payable to himself, but it seems pretty logical to me.  A $2mill investment to guarantee $61mill.  That's the definition of insurance, isn't it?  The fact that Dalton has no injury guarantees in his contract makes it a "less" of a contract than Kaep's.
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Posted: 08/05/2014 11:00 AM

Re: OT: Andy Dalton Cashes In 


Details on these contracts always leak out over time. My understanding is that Dalton actually declined the option to buy that $2 million insurance option. It could be because he's been pretty durable throughout his football career. He hasn't missed a game due to injury since his redshirt sophomore year in college (that's 87 games straight). It also could be because, with the prorated portion of his singing bonus over the first 5 years of his contract ($2.4 million per year through 2018), he's really unlikely to get cut anytime before after the 2016 season (3 years into the deal), due to the accelerated cap hit the team would be taking on, which means that he's really looking at about $36 million over three years. 

Note also that Dalton, instead of having "de-escalators" in his deal, actually has pretty standard "escalators" in his deal. So, his based deal is actually 6 years $96 million. The escalators work as follows:

- If, in any year, he participates in 80% of snaps + the Bengals get to the divisional round of the playoffs, he gets another $1 million per year for remainder of contract.
- If, in any year, he participates in 80% of snaps + the Bengals get to the conference round of the playoffs, he gets another $500K (on top of the $1 million) per year for remainder of contract.
- If, in any year, he participates in 80% of snaps + the Bengals win the Super Bowl, he gets another $1.5 million (or a total of $3 million) per year for remainder of contract.

That's where that extra $18 million (that got him up to $114-115 million) came from.
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Posted: 08/06/2014 4:34 PM

Re: OT: Andy Dalton Cashes In 



pudding wrote: Details on these contracts always leak out over time. My understanding is that Dalton actually declined the option to buy that $2 million insurance option. It could be because he's been pretty durable throughout his football career. He hasn't missed a game due to injury since his redshirt sophomore year in college (that's 87 games straight). It also could be because, with the prorated portion of his singing bonus over the first 5 years of his contract ($2.4 million per year through 2018), he's really unlikely to get cut anytime before after the 2016 season (3 years into the deal), due to the accelerated cap hit the team would be taking on, which means that he's really looking at about $36 million over three years. 

Note also that Dalton, instead of having "de-escalators" in his deal, actually has pretty standard "escalators" in his deal. So, his based deal is actually 6 years $96 million. The escalators work as follows:

- If, in any year, he participates in 80% of snaps + the Bengals get to the divisional round of the playoffs, he gets another $1 million per year for remainder of contract.
- If, in any year, he participates in 80% of snaps + the Bengals get to the conference round of the playoffs, he gets another $500K (on top of the $1 million) per year for remainder of contract.
- If, in any year, he participates in 80% of snaps + the Bengals win the Super Bowl, he gets another $1.5 million (or a total of $3 million) per year for remainder of contract.

That's where that extra $18 million (that got him up to $114-115 million) came from.
So, how many games did he miss in his redshirt year? :)
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