News: Breakdown of Jaylon Smith Contract

[dallasdave]

Exactly. Which is why I think it's a bad deal for a guy still recovering from the injury and has only one good not great season of production.

Well Jerry had to sign someone

 

[Rockport]

Not sure, was just posting about the contract breakdown.

I was questioning the writer not you. Can’t believe he either didn’t know or left it out. The national media sucks.

 

[Little Jr]

Technically they look at it as 6 because the 2020 restricted year never happened but it still had to be accounted for between the Cowboys and agent.

Is that a rule just for rfa? Never happens when a player is due to be a urfa and signs a yr early.

 

[xwalker]

Technically they look at it as 6 because the 2020 restricted year never happened but it still had to be accounted for between the Cowboys and agent.

Why does sport Trac have it as a 6 yr deal and OTC has written up as a 5 yr but their cap break down has it as a 6? Sport Trac has it written up as a 6 and broke down as a 6

OK, I've reviewed it now.

OTC used the 1st round tender amount for 2020 then a new 5 year contract starting in 2021.

Spotrac called it a 6 year new contract starting in 2020.

Both Spotrac & OTC have the total for all years 10 years from 2016 to 2025 as: $74,915,972.00
Spotrac: Look under career earnings, Total Cash
OTC: Look under history, Cash Paid (Total)


Spotrac Method:
4 year Original Contract 2016-2019: $6,494,972.00

6 year New Contract 2021-2025: $68,421,000.00

The sum of the 2 is $74,915,972.00.

Average = $11,403,500.00 ($68,421,000.00 divided by 6 years)


OTC Method:
4 year Original Contract 2016-2019: $6,494,972.00
1 year, 1st round tender for 2020: $4,670,000.00
5 year New Contract 2021-2025: $63,751,000.00

The sum of all 3 is: $74,915,972.00

Average = $12,750,000 ($63,751,000.00 divided by 5 years)


Summary:
The agent probably prefers to use the method like OTC used because it sounds better with a 12.75M average vs 11.4M with the method used by Spotrac.

 

[Little Jr]

OK, I've reviewed it now.

OTC used the 1st round tender amount for 2020 then a new 5 year contract starting in 2021.

Spotrac called it a 6 year new contract starting in 2020.

Both Spotrac & OTC have the total for all years 10 years from 2016 to 2025 as: $74,915,972.00
Spotrac: Look under career earnings, Total Cash
OTC: Look under history, Cash Paid (Total)


Spotrac Method:
4 year Original Contract 2016-2019: $6,494,972.00

6 year New Contract 2021-2025: $68,421,000.00

The sum of the 2 is $74,915,972.00.

Average = $11,403,500.00 ($68,421,000.00 divided by 6 years)


OTC Method:
4 year Original Contract 2016-2019: $6,494,972.00
1 year, 1st round tender for 2020: $4,670,000.00
5 year New Contract 2021-2025: $63,751,000.00

The sum of all 3 is: $74,915,972.00

Average = $12,750,000 ($63,751,000.00 divided by 5 years)


Summary:
The agent probably prefers to use the method like OTC used because it sounds better with a 12.75M average vs 11.4M with the method used by Spotrac.

Ok, so is a rule that they have to account for the tender? I never seem this done,but again, I dont think I've ever seen ,or paid attention to a player signing a deal a year early when he was going to be a RFA at the end of the year.

 

[xwalker]

Ok, so is a rule that they have to account for the tender? I never seem this done,but again, I dont think I've ever seen ,or paid attention to a player signing a deal a year early when he was going to be a RFA at the end of the year.

No, teams prefer to negotiate contracts such the the new contract starts when the previous contract is finished.

Example
Player is under contract for 2019 at 1M.

Team gives the player a new 5 year, 100M contract to start in 2020.

Now the player is under contract for 6 years, 101M.

If the team had started the new contract in 2019, they would just get the player for 5 years, 100M instead of 6 years, 101M.

That's how they look at it from negotiating perspective.

From a contract structure perspective, it looks more like a new 6 year contract starting in 2019 because they give the player a signing bonus.

If a player has 2 years remaining then the new contract starts after the 2 years are complete.

In the Jaylon contract they treated it as if they had him under contract for two years because they had the ability to tender him for 2020.

Disclosure:
Normally Jaylon would have been an Unrestricted Free Agent in 2020 but because he was on NFI his rookie season, he didn't accrue a season towards free agency.

It's possible that some detail related this this issue comes into play with the new contract structure; however, I don't think it does.

 

[tyke1doe]

At this rate Zeke and Dak are both going to hold out. You have a DE and a wounded LB making more than them

Dak isn't going to hold out.
He's not getting this kind of money any place but Dallas. And even if he doesn't get more than Wentz (which he will), he'll still get paid more than Tank and Jaylon, probably will make more than both of them combined. Dak will likely "settled" at $34-$35 million annually.

 

[Little Jr]

No, teams prefer to negotiate contracts such the the new contract starts when the previous contract is finished.

Example
Player is under contract for 2019 at 1M.

Team gives the player a new 5 year, 100M contract to start in 2020.

Now the player is under contract for 6 years, 101M.

If the team had started the new contract in 2019, they would just get the player for 5 years, 100M instead of 6 years, 101M.

That's how they look at it from negotiating perspective.

From a contract structure perspective, it looks more like a new 6 year contract starting in 2019 because they give the player a signing bonus.

If a player has 2 years remaining then the new contract starts after the 2 years are complete.

In the Jaylon contract they treated it as if they had him under contract for two years because they had the ability to tender him for 2020.

Disclosure:
Normally Jaylon would have been an Unrestricted Free Agent in 2020 but because he was on NFI his rookie season, he didn't accrue a season towards free agency.

It's possible that some detail related this this issue comes into play with the new contract structure; however, I don't think it does.

Yeah, I knew how they usually did it. If we sign Dak to a 5 year extension, it will start next year and we would have him through 2024(6 years total).

But this one was different. Signed him to a 5 yr extension but have him through 2025 (7 years total).

I never seen a team treat a urfa contract like this. Treat it like they had him under contract for 2 years because they had the ability to franchise him. It would be like signing Dak to a 5 yr extension, but treat it like we had him for 2 more years because we have the ability to franchise him.

That's why I was asking if there was some different rule for rfa contracts when they sign early. Or some rule for a player like jaylon who missed a whole season being on the NFI which causes the player to lose out on urfa.

 

[Oz-of-Cowboy-Country]

Why does sport Trac have it as a 6 yr deal and OTC has written up as a 5 yr but their cap break down has it as a 6? Sport Trac has it written up as a 6 and broke down as a 6

They gave him a first round tender for 2020, then a five year deal from 2021 to 2025.

 

[buybuydandavis]

Not sure this was posted in any other threads. But here is a breakdown of his deal.

https://profootballtalk.nbcsports.com/2019/08/20/inside-the-jaylon-smith-deal/

Has anyone done the math on this relative to playing out his contract this year, and as a RFA next year?

I remember Collins had a seeming low dollar per year, but when you factored in the years left on his contract, it was actually a crap deal for us that only made sense as payback for him choosing the cowboys as a UDFA rookie.

Let's say we first round tender him at 4.5mil, and no one bites, which I doubt. But let's say. So 5.3mil the next couple of years.

Compared 6 mil salary the next couple of years. The salary is practically a wash.

So in two years, we're getting him on extension with a 13mil bonus for 7.2 9.2 11 11 12.35. That looks really good. yay!

 

[buybuydandavis]

Sound like the FO is more willing to gurantee money more than to deal with high salaries.

He's not just getting guaranteed money, he's getting it earlier than he could normally expect to.

More important to lock in his first big chunk than to squeeze out every long term expected dollar. All the dollars have diminishing marginal utility.

Win-win. Totally makes sense from a risk and marginal utility perspective. Jerry takes on the health risk for significantly reduced long term aggregate cost, while the player gives up some low marginal utility dollars.

This is what I want all the time. Lock in guys who are due for a huge windfall relative to total accumulated earnings in a year or two. That's where the risk reduction and reduced marginal utility let you make a win-win deal.

Guys like Cooper, who have already made a big pile, will be looking to max out long term dollars more. Not as much opportunity for a win-win.

 

[Walker]

This is a very team friendly deal. Nice job Jaylon!

 

[Oz-of-Cowboy-Country]

Yeah, I knew how they usually did it. If we sign Dak to a 5 year extension, it will start next year and we would have him through 2024(6 years total).

But this one was different. Signed him to a 5 yr extension but have him through 2025 (7 years total).

I never seen a team treat a urfa contract like this. Treat it like they had him under contract for 2 years because they had the ability to franchise him. It would be like signing Dak to a 5 yr extension, but treat it like we had him for 2 more years because we have the ability to franchise him.

That's why I was asking if there was some different rule for rfa contracts when they sign early. Or some rule for a player like jaylon who missed a whole season being on the NFI which causes the player to lose out on urfa.

There is no special rule in play here. Franchise tags, transitional tags, fifth year options, and restricted tenders are all individual one year contracts by themselves. But all of them can be directly coupled with a new deal. Dallas just merged his restricted tender with a five year deal. The Eagles done the same thing to Wentz. They picked up Wentz fifth year option and signed him to a new deal.

Two becomes one.

 

[xwalker]

I never seen a team treat a urfa contract like this. Treat it like they had him under contract for 2 years because they had the ability to franchise him. It would be like signing Dak to a 5 yr extension, but treat it like we had him for 2 more years because we have the ability to franchise him.

It's not because of the ability to Franchise, it's because of the ability to Tender as an RFA.

All draft picks sign 4 year contracts and 1st round picks have a team option for a 5th year.

Normally only a UDFA would ever become an RFA (or another team's draft pick signed from their practice squad).

Since a draft pick will never be an RFA, it's rare that we see the RFA issue come into play with big contracts.

Jaylon as mentioned before was a special case because his 1st season on NFI didn't count towards free agency.

 

[CowboyRoy]

The new-money average of $12.75 million puts Smith at No. 5 among all inside linebackers, but the total guarantee of $35.4 million puts him at No. 2, only behind Jets linebacker C.J. Mosley.



Get your money Jaylon! GOOD FOR YOU!!

He deserves it and he isnt greedy and also kept the team and franchise in mind.

 

[TheMarathonContinues]

He deserves it and he isnt greedy and also kept the team and franchise in mind.

You think so? He got what Dak and Zeke wanted in regards to tanking or guaranteed money.

 

[Little Jr]

There is no special rule in play here. Franchise tags, transitional tags, fifth year options, and restricted tenders are all individual one year contracts by themselves. But all of them can be directly coupled with a new deal. Dallas just merged his restricted tender with a five year deal. The Eagles done the same thing to Wentz. They picked up Wentz fifth year option and signed him to a new deal.

Two becomes one.

Yeah, They picked it up and a month later they signed him. If they would've just signed him and added the 5th year option, I would've been a little confused but would figured it out because they had that option to pick up the 5th year.

Jaylon was different for me because I never seen a tender get counted as part of a contract before the player is even tendered or eligible for the tender. Not saying this has never happened, just I never seen it happen.

 

[xwalker]

Yeah, I knew how they usually did it. If we sign Dak to a 5 year extension, it will start next year and we would have him through 2024(6 years total).

But this one was different. Signed him to a 5 yr extension but have him through 2025 (7 years total).

I never seen a team treat a urfa contract like this. Treat it like they had him under contract for 2 years because they had the ability to franchise him. It would be like signing Dak to a 5 yr extension, but treat it like we had him for 2 more years because we have the ability to franchise him.

That's why I was asking if there was some different rule for rfa contracts when they sign early. Or some rule for a player like jaylon who missed a whole season being on the NFI which causes the player to lose out on urfa.

FYI, you might find the Gurley contract from 2018 interesting.

It was reported as a 4 year contract. They kept his 4th year salary for 2018, kept the 5th year option amount for 2019 and then added the 4 years starting in 2020.

 

[JoeKing]

The big bonus is, his pay increase doesn't kick in for two more years..12.75 is a decent deal now..it's probably going to be a really good deal in two years

His "base pay' increase doesn't kick in for two more years but they did give him a $5M signing bonus that is in his bank account right now.

 

[kskboys]

Yeah, I knew how they usually did it. If we sign Dak to a 5 year extension, it will start next year and we would have him through 2024(6 years total).

But this one was different. Signed him to a 5 yr extension but have him through 2025 (7 years total).

I never seen a team treat a urfa contract like this. Treat it like they had him under contract for 2 years because they had the ability to franchise him. It would be like signing Dak to a 5 yr extension, but treat it like we had him for 2 more years because we have the ability to franchise him.

That's why I was asking if there was some different rule for rfa contracts when they sign early. Or some rule for a player like jaylon who missed a whole season being on the NFI which causes the player to lose out on urfa.

Jaylon has a great attitude, team loyalty, and wasn't greedy. He was just rewarded for that.