Peppers contract seems funky

Anyone else find the Observer's story on Peppers' contract a little strange?

From Yasinakas:
"His signing bonus amounts to $13.15 million with $9.1 million payable upon signing. The remaining $4.05 comes in an option payment due next year. His first-year base salary will be $3 million. His base salary drops to $350,000 in 2003 and increases by $250,000 in each following year. Those base salaries will increase substantially if Peppers meets the escalators, which would trigger roster bonuses later in the deal."

First of all, why give him a $3 million salary the first year? It looks like his salary cap hit the first year is $4.3 million based on the salary and a bonus proration of $1.3 million. Where did we get all that cap room from? When I look at his contract over 7 years, it looks like the Panthers are assuring him of about $16 million in up-front money (bonus, option bonus and first year salary), another $5.85 million in salary over the next six years before escalators.

The good part is, if he doesn't hit the escalators which include pro bowls, playoffs and who knows what else this is only a $22 million contract over the seven years. Or, if he does we must be having some pretty good years.

 

Damn, I guess I should have read the other threads before posting this one. Pull the plug on this one Mr. Moderator.

 

I’m financially retarded, so I’m still pretty clueless when I look at this but it might be helpful to you. )


From: http://msn.espn.go.com/nfl/nfc/draftsignings2002.html

DE Julius Peppers (North Carolina/No. 2 overall) -- Signing bonus: $9,100,000. Base salaries: $1,000,000 (2002); $1,100,000 (2003, plus $150,000 offseason workout bonus); $1,350,000 (2004, plus $150,000 offseason workout bonus); $1,600,000 (2005, plus $150,000 offseason workout bonus); $1,850,000 (2006, plus $150,000 offseason workout bonus); $2,100,000 (2007, plus $150,000 offseason workout bonus); and $1,600,000 (2008). Notes: Contract includes a guaranteed second-level option bonus of $4,050,000 next spring and when exercised, base salaries are reduced to $350,000 (2003), $600,000 (2004); $850,000 (2005); $1,100,000 (2006); and $1,350,000 (2007). There are also various escalators that could substantially increase the value of the contract. Total: seven years, $20,985,300 or, if escalators are realized, seven years for as much as $62,000,000.


whatWhatWHAT?!?!

 

looks like the Observer got the salary wrong for 2002. It did seem odd, and since the rest of the sources seem to be saying $1 mil...

 

That's very deceptive for them to say this is a bigger contract than Gilbert's. It's only the escalators that make it so. If he turns out to be a Jason Peter we might have to eat $3 million a year in cap space for him, but that's a hell of a lot better than trying to figure out what to do with Gilbert's $10 mil cap figure.