Megatron's Mega-deal

[Cheesehead Craig]

Great Googly Moogly

http://espn.go.com/nfl/story/_/id/7685419/calvin-johnson-signs-7-year-extension-detroit-lions

An NFL source told ESPN NFL Insider Adam Schefter that the contract is worth $132 million and includes $60 million guaranteed. Johnson's contract is the richest deal ever handed out in the NFL, exceeding the $120 million deal Larry Fitzgerald signed with the Arizona Cardinals last year.

[Upnorth]

I heard they were letting Millen handle contract negotiations again.

So they will average just over 12% of the cap each year to one WR (assuming cap projections are accurate). Wow.

[Old School]

So does that set the FA wideout wage scale? And what dooes that say about the money Greg Jennings will demand? These guys have families to feed you know.

[Fritz]

I still love the Lions. Sure, they seem to be on the right track. But they were over the cap before the re-did this deal and a couple others, so it's not clear that they'll be able to keep Avril and Tulloch, much less go shopping or plan ahead for future free agents.

So they sure look tough short term, but Mayhew has yet to prove he can handle the salary cap over the long haul.

[Pugger]

Good lord. Megatron is a wonderful player but they are screwing up their salary structure and this is gonna come back and bite them in the ass big time.

[Kiwon]

Without knowing the details, my first reactions were, (1) No one player, especially a WR, is worth $132 Million, and (2) Same ole Lions to swing for the fences and whiff.

Yeah, yeah, professional football is an industry but it's a game as well. That's a heck of a lot of money for a player who might touch the ball on what, 15% of the plays on a good day?

[Fritz]

Funny, the talking heads here are celebrating today as the day the Lions have finally "arrived." Their thinking is that a big-time player finally decided to stay in Detroit, and this means that other players like Suh and Stafford, and other free agents will now want to stay in or come to Detroit.

I get that, but then again, both Stafford and Suh had to re-negotiate their contracts to make this one fit and to get the Leos under the cap (they were over before this deal was done), and I am certain neither Stafford nor Suh re-negotiated anything that will pay them less. It'll just put off the big(ger) pay days for them...and when that time comes, and Calvin Johnson is still sucking up all that cap space, how will the Lions handle that, much less attract all these free agents who supposedly will now want to come to Detroit?

[smuggler]

Calvin earning more than 1/7th of their cap for the next 8 years? Good for you, Megatron!

[woodbuck27]

Many believe Calvin’s cash has been grossly overstated

Posted by Mike Florio on March 14, 2012, 10:32 PM EDT
Getty Images
A big-money deal for Lions receiver Calvin Johnson had been expected, but no one really expected how big it would be.
And now the question is whether it’s really as big as claimed.

Initial reports pegged the contract as being worth $132 million over seven years, with $60 million guaranteed. That equates to an annual average of nearly $19 million. And the truth is it’s nothing close to that.

The problem arises from the disconnect between “seven years” and the value of the deal.

Lost in the description is the fact that Johnson already is due to make more than $20 million in 2012, the final year of his rookie deal. And so it’s a seven-year extension, creating an eight year deal — and resulting in an annual average somewhere between $15.5 million and $16 million.

The guaranteed money also is believed to be more like $50 million, with the fully guaranteed money under $40 million.

Without and extension and if the Lions used the franchise tag in 2013, Johnson would have made more than $46 million in the next two seasons.

We’ll defer further comment until the full contract can be obtained and analyzed.

For now, the talk in league circles is that Johnson’s deal is being grossly overstated.

[woodbuck27]

Calvin Johnson calls Lions deal “a tremendous blessing”

Posted by Michael David Smith on March 14, 2012, 1:23 PM EDT
AP

In announcing a new contract extension that will keep him in Detroit through the 2019 season, Calvin Johnson said today that he views playing for the Lions as an opportunity to spend a great career with a great franchise.

“What a tremendous blessing this is for me, my family, my teammates and future teammates to come,” Johnson said.

Although not many people would call the Lions a great franchise for most of the last half century, Johnson especially mentioned his relationship with quarterback Matthew Stafford and said he expects the Lions to be contenders for years to come.

“Everybody’s looking for us to be there this year and we definitely expect that of ourselves,” he said.

Johnson said negotiations were easy because he wanted to stay in Detroit and the Lions made him a great offer.

“The Lions came and got it done,” Johnson said.

Lions President Tom Lewand said the Lions are thrilled and hope Johnson is a Lion for life.

“It’s very exciting to be able to say that we have secured the services of a truly special player for what may be the rest of his career,” Lewand said.

“There are not many guys when you do a contract of this makeup — we did one years ago with Barry Sanders, and he was one of those kinds of guys — who are so special on the field, truly deserving of a contract of this size and a guy who you have no doubt will handle all that comes with it with a great deal of skill on and off the field. It’s a great day for us.”

Lions coach Jim Schwartz got a laugh at the press conference by first double-checking to make sure the contract had been signed and then turning to Johnson and saying,

“I’d have held out for more money, Calvin.”

It’s not often that a team thinks it can get a bargain by paying a player $130 million, but in the case of the Lions and Calvin Johnson, they think they got a steal.

[woodbuck27]

It’s not often that a team thinks it can get a bargain by paying a player $130 million, but in the case of the Lions and Calvin Johnson, they think they got a steal. ... from a PFT.Com story

comment woodbuck27: WOW ! Yes !!

Calvin Johnson is 'a Special Talent'.

That new TV money better come in really strong.

[woodbuck27]

Cracking the code on Calvin Johnson’s deal

Posted by Mike Florio on March 15, 2012, 11:41 PM EDT
Getty Images
On Wednesday, the Lions extended the contract of receiver Calvin Johnson.

Initially reported as a seven-year, $132 million deal, this characterization overlooked the reality that:

(1) it’s an eight-year deal; and

(2) Johnson already was due to earn $18.5 million in 2012.

Also, the report that Johnson will receive $60 million in guaranteed money is, as reports regarding guaranteed money usually are, inflated.

We heard last night that the numbers may have been grossly inflated. Here’s the real story on the deal.

It’s an eight-year, $131.95 million contract.

Until, however, the team chooses to fully guaranteed $3.5 million in base salary in 2018 and $3.5 million in base salary in 2019, the last two years will void, making it a six-year, $96.7 million deal.

So, basically, the last two years are phony, for now.

Factoring in the $18.5 million Johnson already was due to make in 2012 before the extension, it’s a seven-year, $113.5 million deal.

Dropping the phony-for-now base salaries for 2018 and 2019, it’s a five-year, $78.25 million contract.

Not eight (or seven) years and $132 million.

Five years, $78.25 million.

Without the phony-for-now final two years, the contract has an average new-money value of $15.7 million.

If the Lions choose to buy back the last two years by guaranteeing $7 million total in salary, the new-money average increases to $16.2 million.

It gets more confusing than usual when trying to decipher the guaranteed money.

Before a non-guaranteed option bonus of $20 million is exercised in 2013, the deal has $48.75 million in fully guaranteed money.

After the option is exercised (and including the $20 million option bonus), $37.25 million is fully guaranteed.

The $60 million in guaranteed money arises from a $16 million signing bonus, a fully-guaranteed base salary of $1.25 million, the $20 million non-guaranteed option bonus, and another $22.5 million in fully-guaranteed base salary that becomes guaranteed for injury only after the option bonus is paid.

Though not guaranteed, the option bonus undoubtedly will be paid, because until the option is paid the deal has $31.5 million in fully-guaranteed base salaries. It’s an excellent device for ensuring that the option bonus will be paid.


And now for the nuts and bolts of the deal . . . .

1. Signing bonus: $16 million.

2. 2012 base salary: $1.25 million, fully guaranteed.

3. 2012 roster bonus: $4.5 million. (Earned under prior contract.)

4. 2013 option bonus: $20 million.

5. 2013 base salary: $5 million, fully guaranteed before option is paid, guaranteed for injury only after option is paid.

6. 2014 base salary: $5 million, fully guaranteed before option is paid, guaranteed for injury only after option is paid.

7. 2015 base salary: $12.5 million, fully guaranteed before option is paid, guaranteed for injury only after option is paid.

8. 2016 base salary: $15.95 million, $9 million of which is fully guaranteed before option is paid, not guaranteed after option is paid.

9. 2017 base salary: $16.5 million.

10. 2018 base salary: $17 million, $3.5 million of which is fully guaranteed if the team buys back the last two years.

11. 2019 base salary: $18.25 million, $3.5 million of which is fully guaranteed if the team buys back the last two years.

If you made it this far, congratulations. You get a free one-year subscription to PFT. And all the air you can breathe.

[pbmax]

I am getting all misty eyed because that slice through of the hype over Johnson's contract is exactly what makes Florio's site worth reading. Its the type of information that caused me to stop treating it just like a rumor farm and start making it required reading. The rumors always made it a fun read, but the actual detailed info over contracts and legal stuff is great.

[woodbuck27]

I am getting all misty eyed because that slice through of the hype over Johnson's contract is exactly what makes Florio's site worth reading. Its the type of information that caused me to stop treating it just like a rumor farm and start making it required reading. The rumors always made it a fun read, but the actual detailed info over contracts and legal stuff is great.

Yes Mike Florio and his team work tirelessly. He`s very good at tracking down the TRUTH. Gwetting on top of any NFL issue or new development or sifting throug rumor to get the facts. I`ve used PFT.Com alot over the past six seasons as a source.

[TheRaven]

I agree with the sentiments about PFT as well. Great site. Good to see a break down of the deal and see why it was one that was advantageous for both sides.