TheSkaven
Last Man Standing
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Sorry to create another Dak thread, ladies and gentlemen, but I believe that this one will add value to the public discourse.
Can one of you math geniuses help me to understand the Dak Prescott / Todd France negotiation strategy? Because for me, the numbers are not adding up.
I tried to provide links to source everything mentioned below.
In the summer of 2019, the Cowboys offered Dak a deal in the $30 million per year range. Some outlets report that he was actually offered $33 million per year.
He rejected the deal and instead played out the final year of his rookie contract, in which he earned $2.025 million dollars. This is about $28 million in lost earnings for 2019, or $31 million if the Clarence Hill report is correct.
According to reports, there is a new offer in the table now. It’s a $175 million dollar deal which pays Dak $35 million per year.
Dak has rejected this offer as well. If no deal is done, he will play on the franchise tag which will pay him $31.4 million dollars, a difference of $3.6 million dollars.
Can someone please help me understand this negotiating strategy and why it makes financial sense? That’s not even mentioning the enormous risk Dak is taking that he could get injured.
Let’s assume first that the Cowboys cave in July and Dak gets $35 million per year over 4 years. That means he’ll earn $5 million more than he would have if he signed the deal offered in August 2019.
Over the lifetime of the contract, 4 years, he will make $20 million more than he would have if he signed the original offer. But he’s out $28 million, so he’s at a net loss of $8 million!! And this assumes he was offered $30 million per year, because if he turned down $33 million, it looks even worse!
I’m assuming that the two signing bonuses are about the same, since the way they’re talking about the contract value ($140M, $175M, etc) it all works out the same.
Please chime in because I must be missing something.
My only thought is that perhaps the two sides are further apart than we know and this isn’t just about length of contract. To get back the money he lost, I mean just to break even, he’s need a contract that averages $37 million per year and obviously break even isn’t good enough or he would have signed the first deal offered.
I think that Dak’s agent wants $40 million per year - this has actually been reported. If he gets $40 million or $42 million per year, yeah, his agent’s tactics do indeed make sense.
So, bonus question for those who day “sign Dak now”, are you still for signing him at $40 million per year?
Thiughts are appreciated!!
Can one of you math geniuses help me to understand the Dak Prescott / Todd France negotiation strategy? Because for me, the numbers are not adding up.
I tried to provide links to source everything mentioned below.
In the summer of 2019, the Cowboys offered Dak a deal in the $30 million per year range. Some outlets report that he was actually offered $33 million per year.
He rejected the deal and instead played out the final year of his rookie contract, in which he earned $2.025 million dollars. This is about $28 million in lost earnings for 2019, or $31 million if the Clarence Hill report is correct.
According to reports, there is a new offer in the table now. It’s a $175 million dollar deal which pays Dak $35 million per year.
Dak has rejected this offer as well. If no deal is done, he will play on the franchise tag which will pay him $31.4 million dollars, a difference of $3.6 million dollars.
Can someone please help me understand this negotiating strategy and why it makes financial sense? That’s not even mentioning the enormous risk Dak is taking that he could get injured.
Let’s assume first that the Cowboys cave in July and Dak gets $35 million per year over 4 years. That means he’ll earn $5 million more than he would have if he signed the deal offered in August 2019.
Over the lifetime of the contract, 4 years, he will make $20 million more than he would have if he signed the original offer. But he’s out $28 million, so he’s at a net loss of $8 million!! And this assumes he was offered $30 million per year, because if he turned down $33 million, it looks even worse!
I’m assuming that the two signing bonuses are about the same, since the way they’re talking about the contract value ($140M, $175M, etc) it all works out the same.
Please chime in because I must be missing something.
My only thought is that perhaps the two sides are further apart than we know and this isn’t just about length of contract. To get back the money he lost, I mean just to break even, he’s need a contract that averages $37 million per year and obviously break even isn’t good enough or he would have signed the first deal offered.
I think that Dak’s agent wants $40 million per year - this has actually been reported. If he gets $40 million or $42 million per year, yeah, his agent’s tactics do indeed make sense.
So, bonus question for those who day “sign Dak now”, are you still for signing him at $40 million per year?
Thiughts are appreciated!!
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