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TechnographPotential pays more than skill
By Jeremy Werner
Posted: 9/16/07 Section: Columns
Imagine graduating college, landing a job and receiving a top-end salary before ever stepping foot in the office. Ridiculous, right? Not so in the NFL.
JaMarcus Russell, the top overall selection in the NFL draft this year, agreed to a six-year, $61 million deal with the Oakland Raiders last week, ending six months of contract negotiations and a lengthy holdout.
Russell's record deal guarantees him $29 million without ever having stepped foot on the field. This is the way of NFL rookie contracts for first-round picks. Successful college football players are drafted and immediately paid as much as the NFL's best players.
In the NFL, contracts are not guaranteed. If a team cuts a player they are not obligated to pay out the rest of the contract. This works well for teams because they can then "backload" the last years of the contracts. For instance, Russell will make only $3.2 million this season but could earn up to $30 million in the final two years of his contract.
If Russell fails to live up to his lofty draft pick, the Raiders can cut him and be off the hook for the remaining years of his contract. However, even if he were to be cut, Russell will have the $29 million of guaranteed money he received just for signing his contract.
What again did he earn this money for? In the real world, people have to prove themselves before they are given outstanding compensation.
Commissioner Roger Goodell needs to give NBA Commissioner David Stern a call and learn how the NBA's rookie salary system financially protects both owners and players.
In the NBA, all first-round draft picks are paid a salary according to the order in which they are selected.
The first overall pick receives the most (about $4 million in his first year) and with each consecutive pick the salary gradually decreases.
All first-round picks are given contracts with two-years of guaranteed salary followed by two years in which the team has an option to pay the player a set salary.
JaMarcus Russell, the top overall selection in the NFL draft this year, agreed to a six-year, $61 million deal with the Oakland Raiders last week, ending six months of contract negotiations and a lengthy holdout.
Russell's record deal guarantees him $29 million without ever having stepped foot on the field. This is the way of NFL rookie contracts for first-round picks. Successful college football players are drafted and immediately paid as much as the NFL's best players.
In the NFL, contracts are not guaranteed. If a team cuts a player they are not obligated to pay out the rest of the contract. This works well for teams because they can then "backload" the last years of the contracts. For instance, Russell will make only $3.2 million this season but could earn up to $30 million in the final two years of his contract.
If Russell fails to live up to his lofty draft pick, the Raiders can cut him and be off the hook for the remaining years of his contract. However, even if he were to be cut, Russell will have the $29 million of guaranteed money he received just for signing his contract.
What again did he earn this money for? In the real world, people have to prove themselves before they are given outstanding compensation.
Commissioner Roger Goodell needs to give NBA Commissioner David Stern a call and learn how the NBA's rookie salary system financially protects both owners and players.
In the NBA, all first-round draft picks are paid a salary according to the order in which they are selected.
The first overall pick receives the most (about $4 million in his first year) and with each consecutive pick the salary gradually decreases.
All first-round picks are given contracts with two-years of guaranteed salary followed by two years in which the team has an option to pay the player a set salary.
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