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Weber Signs OS w/ Philly (14 yrs, $110 mil - $7.85 mil cap hit) Mod Warning Post 364
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07-19-2012, 11:22 AM
Join Date: Feb 2005
Whether it's front-loaded or not, it's still the same amount of money over the course of the deal. That's how a businessman is going to look at it. The media is obsessed with the first few years, but businessmen understand investment and up-front cost. It may take some work to come up with the money, but they'll appreciate the long-term benefit.
It may be painful now, but will slowly get better and, by the halfway mark, the contract will start to be a bargain. It's really only the first calendar year that's extremely painful, at $27M doled out, then the dole drops almost in half, to $14M. They certainly had every capability and intention of paying $14M per year, as they would've had to (and then some) to keep both Weber and Suter. So, the way that I look at it is... are they really going to let Weber go over a matter of an extra $13M paid out right now? Relatively speaking, that's not much. A 15-year loan at 5% annually for that $13M is only $1.23M per year. They can make the payments quite manageable for their limited budget if they really want to. I doubt that they need to--they surely have the money--but it's an option.
Also, note that Poile was not upset with the contract that Minnesota gave to Suter and didn't say, "we couldn't have matched, anyways." He was genuinely upset that he wasn't given a chance to match, suggesting that he likely would've matched if given the opportunity. If he had the go-ahead to sign Suter to such a front-loaded contract, then I see no reason for him to not have the go-ahead to sign Weber to one.
Originally Posted by
Okay, what are the differences in signing bonus $? If this deal is designed in this way there have to be advantages for Weber?
What are they? Are signing bonuses not subject to escrow? Are signing bonus not subject to taxes ? Are signing bonuses paid if there is a lockout? ETc?
It has to be something other than paid once a year rather than over 12 months like salary....
Remember when, following the last lockout, players had their salaries rolled back 24%? Well, if it happens again--and, for the sake of argument, let's say that it's the same 24%--Weber's $1M base salary will be rolled back 24% to $760K and his $13M signing bonus won't be touched. If his base salary were $10M, he'd lose $2.4M, rather than only $240K. That's likely a large reason why he and others recently (esp. Suter and Parise) have structured their contracts like this.
Last edited by Osprey: 07-19-2012 at
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