Agents Take Deciphering Aaron Rodgers ne

  • The saga is over (at least for now) because he made a decision about his football future last week and subsequently signed a new contract to remain with the for likely the rest of his career. Rodgers was scheduled to make $26,970,588 in 2022 consisting of a $26,470,588 base salary and $500,000 workout bonus. His $46,664,156 2022 cap number prior to the new deal was untenable. The 2022 season was the final year of Rodgers' contract because his 2023 contract year turned into a voiding/dummy year last July in an effort to end his rift with the Packers. Obviously, the i sues that made Rodgers unhappy no longer exist.A breakdown of Rodgers' new contract is in the chart below:Third day of 2022 league year roster bonus (fully guaranteed): $40.8 million (paid on or before Dec. 30), which is prorated in 2022 through 2026 at $8.16 million each year.2023 option bonus: $58.3 million ($28.3 million paid with 10 days of option being exercised; $30 million on Sept. 30), which is prorated in 2023 through 2026 at $14.575 million each year.2024 option bonus: $47 million ($23.5 million paid with 10 days of option being exercised; $23.5 million on Sept. 30), which is prorated in 2024 through 2026 with $15,566,666 in each of the two years and $15,666,668 for the last year.Guaranteed money: $150.665 million Fully guaranteed at signing: $101.515 million Deal total: $150.815 million ($123,844,412 new money) Contract length:Three years (two-year extension) Average per year: $50,271,167 ($61,922,206 new money) Year Base salary Workout bonus 4/15 roster bonus Bonus proration Salary cap number Cash flow 2022* $1,150,000 $50,000 N/A$27,333,568 $28,533,568 $42,000,000 2023** $1,165,000 $50,000 N/A$30,408,570 $31,623,570 $101,515,000 2024*** $2,250,000 $50,000 N/A$38,401,666 $40,701,666 $150,815,000 2025 (option year) $15,850,000 $50,000 $5,000,000 $38,401,666 $59,301,666 $171,715,000 2026 (option year) $10,000,000 $50,000 $5,000,000 $38, 401,668 $53,451,668 $186,765,000 1. Rodgers' contract is realistically a three-year deal running through the 2024 season. Should Rodgers want to continue playing football in 2025 when he is 41, a new contract will surely be negotiated to replace the artificially low $20.9 million and $15.05 million compensation of the 2025 and 2026 contract years, which are considered placeholders. The 2025 and 2026 contract years will be real once the respective options are exercised. Contrary to some reports, 2025 and 2026 aren't voiding/dummy years. 2. Profe sionals within the industry (agents and team negotiators) typically value deals by new money, which is the amount of compensation in a contract excluding what a player was scheduled to make before receiving a new deal. Rodgers' contract will be an exception since the new money average of $61,922,206 per year through 2024 for what would be a two-year contract extension is a 37.6% increase over the 10-year, $450 million extension (worth up to $475 million through incentives) quarterback signed in 2020. Mahomes had been the 's highest-paid player at $45 million. Rodgers replaces him with a three-year-deal average of $50,271,667 per year. In this case, it seems likes the parties were operating as if Rodgers' contract was being ripped up and replaced with a new deal. The cumulative cash through 2024 and the total money of the five years mirroring the last three digits in Rodgers' scheduled 2022 compensation (588) would have suggested a contract extension, where using the new money average would have been more warranted. The three- and five-year totals are $150.815 million and $186.765 million rather than $150,815,588 and $186,765,588. 3. Rodgers sets new NFL standards with $150.665 million in overall guarantees and $101.415 million fully guaranteed at signing. quarterback had been the benchmark in both of these metrics. He has $147,381,405 of guarantees. It's $150 million if Allen's fully guaranteed $2,618,595 2021 third day of training camp roster bonus earned a few days before he signed his six-year, $258 million extension last August is included, like some people do. Allen's $97,381,405 was fully guaranteed at signing. It's $100 million if the training camp roster bonus is included. 4. Rodgers has a very easy threshold with his annual $50,000 workout bonus. All he has to do is attend three days of offseason organized team activities. In most cases, 84.375% participation in the scheduled workouts is required to earn these types of bonuses. 5. The Packers pick up $18,100,588 of much-needed 2022 salary cap relief in Rodgers' new contract. Rodgers' 2022 salary cap number goes from $46,664,156 to a much more palatable $28,533,568. The $19,173,568 and $7,673,570 of existing bonus proration for 2022 and 2023 prior to the new deal remain intact. Interestingly, Rodgers got the Packers to give him a $40.8 million fully guaranteed roster bonus rather than a $40.8 million signing bonus with a 2022 base salary just above his league minimum salary to lower his cap number. Fully guaranteed roster bonuses are prorated on the salary cap, just like signing bonuses. The benefit to Rodgers is the Packers can't recoup any of the $40.8 million as a roster bonus for any type of contract breach, including retirement, after the 2022 league year although the salary cap treatment is the same as a signing bonus.6. Rodgers' contract contains two option bonuses. The double option bonus contract structure is seldom used by . Most notably, the five-year, $125 million extension defensive end signed with the in 2020, which made him the NFL's highest-paid non-quarterback, contains two option bonuses. The benefit of this structure is the cap numbers in the initial years are more manageable because option bonuses are prorated over the life of a contract (up to a maximum of five years), including the option years, beginning in the league year when the option is exercised. Rodgers having nominal compensation in 2022, 2023 and 2024 besides the roster and option bonuses contributes to the workable cap numbers. The drawback is the cap numbers will eventually have a big spike because of the extra bonus proration due to the option bonuses. This extra bonus proration can be problematic if a player is traded, released or retires when this structure is used. The Packers are going to have to contend with $76,803,334 of dead money, a salary cap charge for a player no longer on the roster, if Rodgers retires in 2025. As with the roster bonus, Green Bay won't have any recoupment rights with the option bonuses past the year when exercised. The Packers will have significant dead money if Rodgers decides to retire after the 2022 season because of the roster bonus proration. The option bonus proration would come off Green Bay's books so there wouldn't be any cap charges a sociated with the option bonuses. Green Bay would have $40,313,570 of dead