WEST PALM BEACH, Fla. — The Deshaun Watson The trade and subsequent contract extension continues to send shockwaves through the league, and it will, without a doubt, be the main topic of all informal discussions at the NFL owners’ meetings this week here in West Palm Beach.
There will be nothing on the official agenda about this, but, believe me, the entire league (team presidents, owners, general managers) is still abuzz about this unprecedented contract, and all the angst, turmoil and uproar it will cause for other organizations in the future. Dee and Jimmy Haslem, in a single negotiation, created a bold new horizon in player compensation that could transform the way NFL players are paid to an extent never before seen.
This is a complete game changer. And the rest of the league, as a whole, isn’t happy about it.
For a player exposed to so much risk, facing suspension for allegations of sexual assault and sexual misconduct – with 22 civil cases still pending – he will receive an $11 million per year raise, landing a fully guaranteed $230 million contract without ever signing an autograph or making a public appearance for the Brownsnot to mention downplaying, is astounding. The reality is that, immediately, every quarterback, regardless of distinction, will seek non-trade language and fully guaranteed contracts, whether they last three or seven years. This is now the new standard that all agents will strive for.
Make no mistake, the business of football – for now, at the highest prices for QBs; possibly for other positions as well – has changed forever. There’s no turning back now… not for Haslam, not for any owner. I was discussing this with longtime NFL team president Joe Banner this weekend, and in addition to all the already discussed implications of this contract, he pointed out another one I hadn’t focused on: the NFL’s regulations for financing fully guaranteed contracts.
Under current league rules, all fully guaranteed future money owed in a player contract must be placed in escrow at the time the transaction is completed. It is outdated and has long been a bone of contention for the NFLPA. It was implemented long before the NFL became the 365-day-a-year revenue and content behemoth it is today, and it was put in place on the surface to prevent a team from defaulting on a player contract. Yeah, picturesque, right? Those days are long gone, but for decades many homeowners hid behind this as an excuse for not warranting more than a year or two. I can’t put $50 million, $60 million, $100 million on deposit every time someone wants a fully guaranteed deal. Only, well, Haslam just put about $185 million on deposit to pay off what he still owes Watson beyond 2022 (and he did it by also putting only $1 million in the QB’s base salary to limit any financial damage an upcoming suspension might cause him).
So yes, it’s over.
Either other owners will step in like him, or suddenly these billionaires will decide that the union was right all along, and these escrow accounts are a stupid idea from a bygone era and let’s be done with it! Because the cost of doing business for top starting quarterbacks is now $45-50 million a year, fully guaranteed, and Lamar Jackson, Kyler Murray And Russell Wilson will be the next three to benefit from this paradigm shift. The first two will get similar structure and language in their current teams’ expansions or eventually be distributed to an owner who will provide them; THE Broncos are forced to do the same with Wilson after simply trading a series of picks and players to land him with just two years remaining on his outdated contract.
This Watson deal may have just drawn another line between the rich and the very rich within the ownership group. Or those who are willing to spend like the Haslams, and those who won’t accept the reality of five-year, $250 million, fully guaranteed deals. Like it or not, this Watson deal introduced the NFL to the type of financial spending that has long been the norm in the NBA and MLB. If Watson got this, under these dire personal circumstances, how long until the NFL gets its first (fully guaranteed) $300 million man? It’s suddenly much closer than anyone could have imagined 10 days ago. What does that mean for guys like Bengals owner Mike Brown And Chargers owner Dean Spanos, who is not known as a big spender but is in extension talks with Joe Burrow And Justin Herbert looming in less than a year?
“In this case, come March 1, the Browns are going to have to deposit, I believe, close to $180 million into what amounts to an escrow account, where the guaranteed money that will be owed to the player in the future will be held,” Banner told me during an Inside Access discussion on 1057 The Fan in Baltimore. “…Not when you think about a quarterback like Lamar Jackson in a market like Baltimore, or (Joe) Burrow in Cincinnati or (Justin Herbert) in Los Angeles, but what in economic terms is the San Diego team, I don’t know if those owners are going to be able to put $140 million, $150 million, $180 million in an escrow account in nine months. I’m not sure that’s something that all teams can do. do.”
In the meantime, if Steve Bisciotti (Crows) or Michael Bidwell (Cardinals) do not think that operating in this way is a good deal, so all it takes is another owner who does not fear this sudden shock to find a suitor. Find two and you have a robust trading market. Panthers Owner David Tepper’s desperate search for QB help is well documented, Arthur Blank was willing to pay top QB compensation to Matt Ryan throughout his time in Atlanta, and Seattle has never feared a big payroll and suddenly has a need at QB too.
“This is actually a huge advantage for high-revenue, high-profit teams, and a huge disadvantage for teams working in smaller markets,” Banner said. “And I suspect the league will do something about it. Maybe it won’t affect Deshaun but in the future, because I know they’re accused of greed when it comes to this and I’m not going to fight them on that, but this rule comes down to competitive balance, which they really, really care about.
“They think that’s what made the league successful and profitable, so they’re not going to want to leave it in a situation where the Cincinnatis and the Baltimores of the world might be at a competitive disadvantage because of the structure of this deal. So I’m looking forward to seeing how they approach that, because I don’t think there’s a chance that they won’t do it one way or another. And in the meantime, the Baltimores of the world are in a very difficult situation. tougher than they were before in terms of trying to re-sign these guys. The number is increasing, but so are some of these nuanced issues behind the scenes that the public may not see so often. They’re going to have a huge impact on places like Baltimore.
These will be the discussions that continue while the owners have lunch and dinner together. This will be what will be whispered in the corridors. This could very well lead to meaningful trade talks in real time, considering the blockbusters that have already taken the league by storm so early in this offseason. The stakes have risen exponentially and the ramifications are only beginning.
All eyes on Broncos sale
One of the things other owners most want to get out of these meetings are updates on the sale of the Broncos. It has been clear for years that in 2022 this team was going to be marketed, and a lot of checks have already been carried out behind the scenes. It wasn’t a surprise.
The closer this price gets to $4 billion, the happier these billionaires will be. For a multitude of reasons. If he gets close to that number, many in league circles believe it will prompt other owners who have been left on the sidelines to start fielding buyout invitations for their franchise. Post-pandemic (at least for now), with the football business booming and with more sponsorship and broadcast deals (Sunday Ticket) and gaming revenue still to come, and the game now expanding internationally beyond just the UK, there are dollar signs in the eyes of many owners.
THE sea hawks will only stay in the Allen family for so long. Saints owner Gayle Benson has already announced that she will sell this team at some point. There are many rumors that other owners are no longer as captivated by the property as they once were and are looking at 2022/2023 as an opportune time to cash out. For now, all eyes remain on Denver and a trade that multiple league sources say will be finalized by October. Maybe even sooner.
Adjust OT rules
These meetings are devoid of the type of juicy rule proposals on the ground that we have seen in the recent past. Much of the focus this week will be on changing overtime.
Based on initial conversations, I don’t feel like the proposal to incorporate two-point conversions into the process (a team winning the coin toss and producing eight points on the first drive and then finishing the game) has that much traction. If a change is made, I would expect it to stipulate that both teams have the chance to possess the ball during overtime. But I’m also not sure it has enough momentum.
