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We may die, but our actions are immortal
McMichael Contract Particulars per PFT
McMICHAEL DEAL A WIN-WIN
As usual, the initial media report (i.e., Lenny's knee-pad routine for the agent who spork-fed him the info, along with some ziti) regarding a high-profile contract extension doesn't tell the whole story.
Discussions with multiple league insiders have yielded some intriguing details regarding the four-year contract extension signed on Thursday by Dolphins tight end Randy McMichael. Based on the nuggets set forth below it appears to us that both the team and the player benefit from this one, especially in light of McMichael's history of playing life-size Rock 'Em Sock 'Em Robots with the mother of his children and his potential status (per prior published reports) in the league's substance abuse program.
The total bonus money is, at first glance, a solid $8.92 million. However, only $1.52 million is paid up front. The next installment -- a $4.4 million roster bonus -- is due in March 2006. The final chunk is another roster bonus worth $3 million, which comes due in March 2008. The Dolphins have the right to convert the roster boni to guaranteed payments, which will then allow the money to be spread into multiple years under the salary cap.
The Dolphins, then, are essentially paying McMichael $2 million for the 2005 season (his salary is $480,000), with an option to pick up a four-year deal in March 2006 -- if he continues to perform and if he manages to behave. The Fins also have another "out" in 2006, when they can avoid paying him $3 million if he has become ineffective on the field or incarcerated off of it.
Given McMichael's unusual but hardly unique circumstances, the structure of the bonus payment has one clear benefit. Because he isn't getting the money in the form of a signing/option bonus, the team does not have the same rights to recover payments.
We're told that the contract requires him only to repay the roster bonus amounts if he defaults during the year in which the roster bonus is paid. Thus, if McMichael makes it through 2006 without incident, the $4.4 million stays in his pocket even if he is suspended or holds out in 2007.
Ditto for the $3 million due in 2008. As of 2009, he can't be required to pay any of it back.
We're also told that McMichael is in the process of purchasing insurance that will guarantee his $4.4 million roster bonus in the event that the team chooses not to pick it up, if McMichael suffers any injury in 2005 that requires him to miss practice or a game. The cost of the insurance is roughly $70,000, we hear, but the policy apparently will result in payment of the full $4.4 million even if the reason for the team's decision not to pay the money in 2006 is unrelated to any injury he suffers.
The bottom line here is that McMichael's deal is, given his circumstances, a good deal for both sides. The Fins have flexibility and security, and McMichael ends up getting paid fairly despite the various issues that necessarily would have made any team leery about giving him big money.
McMICHAEL DEAL A WIN-WIN
As usual, the initial media report (i.e., Lenny's knee-pad routine for the agent who spork-fed him the info, along with some ziti) regarding a high-profile contract extension doesn't tell the whole story.
Discussions with multiple league insiders have yielded some intriguing details regarding the four-year contract extension signed on Thursday by Dolphins tight end Randy McMichael. Based on the nuggets set forth below it appears to us that both the team and the player benefit from this one, especially in light of McMichael's history of playing life-size Rock 'Em Sock 'Em Robots with the mother of his children and his potential status (per prior published reports) in the league's substance abuse program.
The total bonus money is, at first glance, a solid $8.92 million. However, only $1.52 million is paid up front. The next installment -- a $4.4 million roster bonus -- is due in March 2006. The final chunk is another roster bonus worth $3 million, which comes due in March 2008. The Dolphins have the right to convert the roster boni to guaranteed payments, which will then allow the money to be spread into multiple years under the salary cap.
The Dolphins, then, are essentially paying McMichael $2 million for the 2005 season (his salary is $480,000), with an option to pick up a four-year deal in March 2006 -- if he continues to perform and if he manages to behave. The Fins also have another "out" in 2006, when they can avoid paying him $3 million if he has become ineffective on the field or incarcerated off of it.
Given McMichael's unusual but hardly unique circumstances, the structure of the bonus payment has one clear benefit. Because he isn't getting the money in the form of a signing/option bonus, the team does not have the same rights to recover payments.
We're told that the contract requires him only to repay the roster bonus amounts if he defaults during the year in which the roster bonus is paid. Thus, if McMichael makes it through 2006 without incident, the $4.4 million stays in his pocket even if he is suspended or holds out in 2007.
Ditto for the $3 million due in 2008. As of 2009, he can't be required to pay any of it back.
We're also told that McMichael is in the process of purchasing insurance that will guarantee his $4.4 million roster bonus in the event that the team chooses not to pick it up, if McMichael suffers any injury in 2005 that requires him to miss practice or a game. The cost of the insurance is roughly $70,000, we hear, but the policy apparently will result in payment of the full $4.4 million even if the reason for the team's decision not to pay the money in 2006 is unrelated to any injury he suffers.
The bottom line here is that McMichael's deal is, given his circumstances, a good deal for both sides. The Fins have flexibility and security, and McMichael ends up getting paid fairly despite the various issues that necessarily would have made any team leery about giving him big money.
