Someone please help me understand "X amount of money guaranteed"

[Red Dragon]

You hear things like "6-year, $55 million contract, $27 million guaranteed."

Does this literally mean that if an athlete quits and retires the very next day after signing the contract, he still gets his $27 million?

What does he have to do to get the "guaranteed" money that's, well, guaranteed?

 

[dargonking999]

What it means is that if the team decides to cut him at any point before the end of his contract, they will still have to pay out whatever remains of the guaranteed money. The athlete will get 27 million from the team, whether he plays for them for one year or the full 6. But that only is if the team cuts him, if he retires, then what he gets paid, depends on the language in the contract, and what his agent and the team come to agreement on.

 

[Red Dragon]

What it means is that if the team decides to cut him at any point before the end of his contract, they will still have to pay out whatever remains of the guaranteed money. The athlete will get 27 million from the team, whether he plays for them for one year or the full 6. But that only is if the team cuts him, if he retires, then what he gets paid, depends on the language in the contract, and what his agent and the team come to agreement on.

Makes sense. Thanks !

 

[Rogah]

You hear things like "6-year, $55 million contract, $27 million guaranteed."

Does this literally mean that if an athlete quits and retires the very next day after signing the contract, he still gets his $27 million?

No. Technically speaking, he would have to give back a pro-rated portion of his signing bonus - and if he quit the very next day, that pro-rated version would be 100%.

Granted, NFL teams have not had terribly much success going after signing bonuses in situations where player quit while a contract is still active, but that's a whole 'nother matter.