Salary Cap Rules Question

[coult44]

With yesterday's news of Patrick Mahomes signing an endorsement deal with Hunts Ketchup, it got me thinking about salary cap rules. Could endorsement deals like this help.

There are countless discussions about Dak signing for upwards of 25 Million. But, could SJ and the Cowboys work out a deal to sign him for 20 million and then hook him up with a deal with someone like ATT, or Ford, or The Star, to make up the difference? Are there rules to prohibit this?

When Mahomes gets his new deal does he give them a hometown discount because of being Hunts number one guy? I don't know what but I've never thought about this before?

 

[Direwolf63]

With yesterday's news of Patrick Mahomes signing an endorsement deal with Hunts Ketchup, it got me thinking about salary cap rules. Could endorsement deals like this help.

There are countless discussions about Dak signing for upwards of 25 Million. But, could SJ and the Cowboys work out a deal to sign him for 20 million and then hook him up with a deal with someone like ATT, or Ford, or The Star, to make up the difference? Are there rules to prohibit this?

When Mahomes gets his new deal does he give them a hometown discount because of being Hunts number one guy? I don't know what but I've never thought about this before?

The best thing to do going forward (and obviously this has to be negotiated into the next CBA) is to have QB's on second or third contracts have only a portion of their cap count against the teams salary cap.

So if QB1 has a $30M cap hit under today's rules, only $15M is counted against the teams salary cap.

I've heard people say the QB's salary should be outside of the team's cap, but I think at least some should be counted. Half seems about right to me.

 

[links18]

I think they call that "collusion."

 

[Direwolf63]

With yesterday's news of Patrick Mahomes signing an endorsement deal with Hunts Ketchup, it got me thinking about salary cap rules. Could endorsement deals like this help.

There are countless discussions about Dak signing for upwards of 25 Million. But, could SJ and the Cowboys work out a deal to sign him for 20 million and then hook him up with a deal with someone like ATT, or Ford, or The Star, to make up the difference? Are there rules to prohibit this?

When Mahomes gets his new deal does he give them a hometown discount because of being Hunts number one guy? I don't know what but I've never thought about this before?

To answer your question, I don't believe there are rules against it as far as I know.

If Jerry could swing a huge endorsement deal with AT&T for Dak, it won't count against the cap. And if during negotiations, Dak wants to give the team a break salary-wise he can do so. I don't think there is anything that would stop that. The NFLPA would not be happy.

EDIT: endorsement deals cannot be written into the contract. It would all need to be set up outside of the contract.

 

[Creeper]

If the deal was structured the way you describe it, yes, it would be prohibited. At&T cannot "make up" the difference as part of a formal or informal agreement with the Cowboys team. However, if AT&T independently approaches Dak for a big endorsement deal then its legal, even if the Cowboys make the introductions.

why would an agent agree to a deal negotiated with 3 parties? He can line up those endorsements on his own and if AT&T turned him down only to have them come back with a deal like you described the agent would be remiss if he did not file a complaint with the league.

I am sure players do factor in local endorsements into their thinking when signing, but they want guaranteed money from the team where their are legal parameters that prevent that money from being taken off the table. The Cowboys already have a good incentive for players to sign for a little less money. Texas has not state income tax. Take the Giants for example. NJ has about a 8% top rate on income. For a star player making $10 million a year that's $800k in taxes! a $20 million signing bonus would be cut by $1.6 million for taxes. California is even worse. I have no idea why any player would sign a contract to play in California where the top rate is 13% I believe.

 

[jazzcat22]

I can see the commercial now....

Amari calls Dak...hey Dak I am open, throw me the ball...
Dak says..let me put you on hold, I have another call...it is a DE, tells Dak to look up, as he smacks him to the ground...then Dak gets up from the sack fumble and gets back to Amari..says, sorry bud, I dropped the ball, I mean call, time to switch carriers....

Then Dak looks to the TV, says, don't get sacked by dropping calls, switch to AT&T....

 

[Nightman]

With yesterday's news of Patrick Mahomes signing an endorsement deal with Hunts Ketchup, it got me thinking about salary cap rules. Could endorsement deals like this help.

There are countless discussions about Dak signing for upwards of 25 Million. But, could SJ and the Cowboys work out a deal to sign him for 20 million and then hook him up with a deal with someone like ATT, or Ford, or The Star, to make up the difference? Are there rules to prohibit this?

When Mahomes gets his new deal does he give them a hometown discount because of being Hunts number one guy? I don't know what but I've never thought about this before?

Clearly illegal

No third party can pay any "salary" to the player

Smart athletes do know that they can make more endorsement money with certain teams... that is legal

 

[Nightman]

The best thing to do going forward (and obviously this has to be negotiated into the next CBA) is to have QB's on second or third contracts have only a portion of their cap count against the teams salary cap.

So if QB1 has a $30M cap hit under today's rules, only $15M is counted against the teams salary cap.

I've heard people say the QB's salary should be outside of the team's cap, but I think at least some should be counted. Half seems about right to me.

The cap is so high that they don't need any special caps

If anything they need to expand the rosters to the full 63 or billions will be wasted every year as rollover

Teams left over 400m on the shelf this year

 

[Roadtrip635]

With yesterday's news of Patrick Mahomes signing an endorsement deal with Hunts Ketchup, it got me thinking about salary cap rules. Could endorsement deals like this help.

There are countless discussions about Dak signing for upwards of 25 Million. But, could SJ and the Cowboys work out a deal to sign him for 20 million and then hook him up with a deal with someone like ATT, or Ford, or The Star, to make up the difference? Are there rules to prohibit this?

When Mahomes gets his new deal does he give them a hometown discount because of being Hunts number one guy? I don't know what but I've never thought about this before?

There's nothing against Jerry introducing or suggesting to companies that players should be considered for marketing deals or other business dealing not directly tied to the team. It's becoming a more common occurrence. It's been a topic in the NBA, owners introduce players to successful businessmen and then go into investments and such together. There's been several GSW players that have done that. Iguodala could have signed for more elsewhere, but his outside business dealing with area investments made it more lucrative to stay.

For Dak, it's better to take a little less to stay in Dallas, simply because the marketing opportunities will be better here than in most other markets. High profile team, global fan base with a lot of exposure and media coverage. He would easily make up any difference up in endorsement deals etc. staying here than going somewhere like Miami or Tampa bay.

 

[Direwolf63]

The cap is so high that they don't need any special caps

If anything they need to expand the rosters to the full 63 or billions will be wasted every year as rollover

Teams left over 400m on the shelf this year

I would suggest to you most of that money rolled over are from teams that have QB's on their rookie contracts or don't have a QB worth paying big money to.

As soon as a team gets their QB to a Matt Ryan level contract, the rest of the team has to start being thinned out as the cap becomes more of a problem.

 

[TwoCentPlain]

Dak has been making around $5M/yr on endorsements if I remember correctly.

 

[Nightman]

I would suggest to you most of that money rolled over are from teams that have QB's on their rookie contracts or don't have a QB worth paying big money to.

As soon as a team gets their QB to a Matt Ryan level contract, the rest of the team has to start being thinned out as the cap becomes more of a problem.

Nope

 

[Kaiser]

Smart athletes do know that they can make more endorsement money with certain teams... that is legal

And both Jerry and Stephen are smart enough to know exactly what the landscape is, which favors Dak taking a favorable deal in Dallas because there will be a lot more endorsement deal money on the table for him.

 

[Flamma]

With yesterday's news of Patrick Mahomes signing an endorsement deal with Hunts Ketchup, it got me thinking about salary cap rules. Could endorsement deals like this help.

There are countless discussions about Dak signing for upwards of 25 Million. But, could SJ and the Cowboys work out a deal to sign him for 20 million and then hook him up with a deal with someone like ATT, or Ford, or The Star, to make up the difference? Are there rules to prohibit this?

When Mahomes gets his new deal does he give them a hometown discount because of being Hunts number one guy? I don't know what but I've never thought about this before?

I don't see anything wrong with a player taking less pay from his team because he makes a lot on endorsements, I just don't see any players doing it. If you're asking if an owner can make a side deal with a business to do this, I'd have to ask one question, what's in it for the endorsing business?

Look at Tom Brady. Him and his wife have more money than they can spend in 10 lifetimes yet he's an over 20 million cap hit.

 

[Nightman]

And both Jerry and Stephen are smart enough to know exactly what the landscape is, which favors Dak taking a favorable deal in Dallas because there will be a lot more endorsement deal money on the table for him.

I don't see it so much in the NFL.... ARod and Brady always made a ton of money off the field but so does Cam and RWilson and Brees

Dallas is a good spot but Peyton did OK in IND and DEN

 

[Direwolf63]

Nope

Now theres a high end, analytical response if I ever read one.

 

[Nightman]

Now theres a high end, analytical response if I ever read one.

KISS

when you are 100% wrong why waste the time

 

[Aerolithe_Lion]

This is one of the most complicated things in professional sports management. Klay thompson is a perfect example. There’s talk about a few endorsements in the Bay Area that are hesitant to sign him to lucrative deals because he might leave the area. It is an example of major financial benefits to staying a Warrior and maybe even allow for him to be lenient with his salary, while not technically being collusion.

Should that be illegal? Local business making good business practice? Not a lot different than collusion, though the reasoning is much different.

 

[BleedinBlue]

The best thing to do going forward (and obviously this has to be negotiated into the next CBA) is to have QB's on second or third contracts have only a portion of their cap count against the teams salary cap.

So if QB1 has a $30M cap hit under today's rules, only $15M is counted against the teams salary cap.

I've heard people say the QB's salary should be outside of the team's cap, but I think at least some should be counted. Half seems about right to me.

The teams with the most money would get the QB in that scenario. Right now it's the team that will pay the most but it has to fit within the cap. Say Mahomes is up for a deal . nothing to prevent the teams with the most money to outbid small market teams like before FA and salary cap.

 

[esmith1790]

this point has always been on my mind and probably discussed in other threads somewhere.

Set up a "Legit" company. Pay all the players minimum salary and then give endorsements from that "Legit" company.

so if there was cap room by another team, there is no cap on endorsements. I think you could Ponzi scheme this "Legit" company.