Contrary to recent comments from folks like NFLPA Executive Director Gene Upshaw and ESPN’s Chris Mortensen, the players in the NFL want to change the manner in which rookies are paid.
The players don’t want to change the manner in which all rookies are paid, just the handful at the top of the board who get increasingly obscene amounts of money despite never having attended an NFL game without a ticket.
A veteran player who requested anonymity because of the sensitive nature of the issue called us today, and said that the notion (perpetuated by Mort on Tuesday) that players don’t want to rein in the rookie wages at the top of the draft is “utterly absurd.”
“It’s the exact opposite,” the source said. “Players want it because it benefits them.”
Indeed, the only people hurt by the elimination of the huge contracts at the top of the draft are the folks who have not yet received such deals, and the agents who represent them.
And none of them have a vote.
It’s like putting the question of whether to raise the minimum age to receive Social Security benefits to 70 years of age only to people who are 70 or older. Raising the bar means more money for them, and less money for those who have no say in the matter.
As we hear it, even one of the players who received in the past few years one of those high first-round rookie windfalls is in favor of slamming the door. And why wouldn’t he be? The player in question is now a member of the group of players who would have more money available to them for veteran deals, if the huge contracts to an annual handful of rookies are reduced dramatically.
Another factor in all of this is the locker-room dynamic. As the source explained, a kid who has been paid $30 million in guaranteed money has no reason to listen to anyone. Not the coach, not the veteran leadership, not the owner. The kid is essentially bulletproof. As long as he doesn’t do anything that gets him suspended for conduct detrimental to the team, he can do whatever he wants.
And so what if he ends up being a bust? That $30 million will be more than enough to last as far into the future as the kid is inclined to peer, or to care. He doesn’t need to think about earning that big second contract. He really doesn’t need to think about anything. Before the chinstrap is fastened for a single training camp practice, the kid is set for life.
With all that said, it’s possible that Upshaw is merely pretending that the union doesn’t want to change the current system as a bargaining ploy, since it’s obvious that the NFL hopes to address the problem. But we’re told that Upshaw has been pressed on the issue by players for several years, and that he continues to offer up flimsy excuses as to why the system should remain as it is.
The real winners (and thus the real potential losers) in all of this are the agents who routinely are in the mix for the top players. For a rookie deal that averages only $5 million per year (and Jake Long is getting more than twice that annually), the maximum fee is $150,000, per year. If a firm like CAA has multiple players who are earning that rookie-deal money (e.g., Long, Vernon Gholston, Matt Ryan, Adrian Peterson, Mario Williams, Matt Leinart, Alex Smith, Cadillac Williams, Eli Manning, Roy Williams), a lot of money that would evaporate from the annual budget if a reasonable formula for the draft picks were installed in its place.
And since Upshaw is represented by CAA, there’s the real answer (in our opinion) as to why Upshaw is resisting change.
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April 23rd, 2008 at 12:36 pm
Capo Gino needs to go down.
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April 23rd, 2008 at 12:45 pm
I don’t understand the agent argument…
the NFL has a salary cap, there is a set amount of money to made every year, thus, there is a set percentage of that money that will go to the agents every year. Why would an agent care if the money goes to veteran clients rather than rookie clients?
I would think it would be easier for an agent to rely on a more stable list of veterans to feed his family rather than killing himself to land a top 10 prospect rookie that may never sign a second contract.
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April 23rd, 2008 at 12:57 pm
This story has really caused me to lose all respect for Mort. How can this guy be so out of touch with mainstream players? Has he fallen under the spell of Upshaw?
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April 23rd, 2008 at 1:00 pm
The argument is that the big money contracts are more lucrative for the agents (they require marginally more effort for much larger paydays compared to veteran clients). The huge rookie deals also give the agents more publicity, helping them land more disgruntled veteran clients.
If one had the option of negotiating trades and contracts for one player for $150k or negotiating trades and contracts for 50 players for $150k, which do you think is more preferable?
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April 23rd, 2008 at 1:01 pm
As a fan, I absolutely agree with the idea. Not to mention that frequently these guys don’t even perform much better than some mid-round picks, they destroy teams. Too often we see veterans forced to depart because so much money is eaten up in cap space by these unbelievable rookie contracts. Then you have guys who were drafted a few years before and who ARE performing at top levels look at the rookie contracts and hold out (or threaten to hold out) for even bigger contracts themselves. It’s out of control. How about a standard “compensation” scale for the first 4 years and then some type of exclusive bargaining opportunity for the drafting team after that? EARN your way into the big money and give the home team the first crack at trying to keep you in town.
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April 23rd, 2008 at 1:01 pm
Because the Agent also gets the incoming not only from the signing bonus but every year that the kid is on the team. That agent is almost guarenteed to get paid for the 4 to 6 yrs from the kid. The agent for Alexander only received his portion from the signing bonus and the two yrs that he was on the Seahawks. Its not like the agent gets the plays a 6 yr 100 million dollar contract and the player has to cough up the 2 or 3% right there. He only pays the agent for the money he receives from the team.
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April 23rd, 2008 at 1:03 pm
I’m sure not *all* agents would be against it… just the group that always has the big picks at the top.
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April 23rd, 2008 at 1:04 pm
The agents would actually have to do more work for the same money.
They would get the same percentage of the salary cap I think, but then they would actually have to work and negotiate more deals more often for the same slice.
The rookie payscale could take the need for agents away all together until the second contract or for guys who go undrafted.
The most fair thing I can think of is the NBA model where free agency happens sooner, but the team that drafted you has the chance to pay the most money to keep you.
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April 23rd, 2008 at 1:05 pm
dfrooney - CAA agents consistently land the top college prospects because of their track record for getting big contracts. when you’re representing college players, no one can guarantee how they will translate into the nfl. it’s easier to cover for these agents to consistently land the big names to get the big paycheck year after year because by the time the rookie contract is up, you don’t know if that player will be worth another big contract. if they made the change that players, fans, and the owners want, it’ll be a crap shoot each year as to how much each agent makes because not all the players they represent will be worth the big contracts.
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April 23rd, 2008 at 1:06 pm
dfrooney: agents get a percentage of every *new* deal and only of the guaranteed part, which explains why they won’t want to take that away from the rookies.. Keywords being new and guaranteed money. Agents do not get money from the base salary a vet makes a year.
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Rating: 5 / 5 with 1 rating(s)
April 23rd, 2008 at 1:13 pm
For agents it is about “the big money”. The splash. The publicity. And they have Capo Gino’s ear now. If he is replaced and/or a pay plan rule switch goes into effect for the rookies… they might be out of some $. And out of the ability to command even more money and clout.
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April 23rd, 2008 at 1:19 pm
When is Chris Mortensen ever correct? He comes off as a know it all and an authority but doesn’t know sh-t!
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April 23rd, 2008 at 1:22 pm
NFLPA Union members, remember you pay your union dues for a reason. You pay them for the right to say who represents you, and the ideas and actions of the union. Use your right to get a leader. Not an ego maniac, who cares more about his relationship to the NFL owners, than to those who pay his salary.
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April 23rd, 2008 at 1:34 pm
Upshaw likely continues to offer up “flimsy” excuses for not wanting to change the current structure because even flimsy excuses sound better than his real reason for opposing it– because the NFL owners are suggesting it. Viva la union.
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April 23rd, 2008 at 1:51 pm
The agents don’t want this because rookies drafted in the top spots will no longer need agents for their pay negotiations. Why would you give someone 3% of your pay when you can simply walk in and tell the team you want the most the scale has to offer you? The agents then would only get the 3% of the marketing of the player, which is one DUI or sexual assault charge away from evaporating.
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April 23rd, 2008 at 2:04 pm
Upshaw is a high paid stooge. The players if they had a collective brain would want a rookie cap because it would leave a bigger pool for the players on each team to divide up. While you might say that Jake Long has now set the standard for LT position when you look at it as a whole, the pool of current players benefits if there is a limit to what any single rookie can make and the total cap keeps rising. But Upshaw doesn’t want to piss off his agents. Another example of a rather large conflict of interest.
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April 23rd, 2008 at 2:12 pm
Upsahw is in the big agents’ pockets. His personal agent is on the union’s retirees compensation board. wtf4? he doesnt represent anyone - except maybe representing no-accomplishment young players and his own interests in keeping retireees from getting too many crumbs from the dinner table…
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April 23rd, 2008 at 2:55 pm
Upshaw is a d-bag. He is not good at what he does. This guy has got to go. He is so dirty.
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April 23rd, 2008 at 3:34 pm
Who is Mort’s agent?????????????????
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April 23rd, 2008 at 3:50 pm
This situation should have been addressed years ago. The reason it hasn’t can be traced all the way to the stooge who is supposed to be representing the rank and file. And still he resists change. That should tell you everything you need to know about this turd.
And to the individual that stated that rookies wouldn’t need an agent if a rookie wage scale were to be put in place, nothing could be further from the truth. Every player needs sound representation, someone who can look past the compensation portion and look out for his players other needs. Marketing deals immediately come to mind.
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April 23rd, 2008 at 3:57 pm
If the agents don’t want it, they are free to represent their clients to the Canadian Football League or the Arena Football League….oh yeah, snicker. GFH makes a great point, that agents would be less important to a rookie’s pay slot and would lose the 3% commission. Hey “agents”, how about this—go do your job and earn your clients some endorsements?!? If they really ARE “all that”, you should be able to pick up some endorsements for them and if you do that, you might earn their trust to keep you around when it comes time to negotiate the big money deals.
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April 23rd, 2008 at 5:03 pm
With the bombing of the U.S. economy, Gene Upshaw better get his house in order. While the NFL is still the best game in town, it is unlikely NFL profits will continue to grow so expansively.
Upshaw needs to understand $4 a gallon gas, house foreclosures, and the psychological loyalty NFL fans have toward their team’s players who have already proven themselves as great players for the fans’ preferred teams.
Upshaw needs to work toward preventing ANY labor stoppage or ANY labor hints of wanting more, more, more money. Part of that would be a rookie salary cap.
Gas and milk will likely be $4 a gallon by mid summer. That means those $40 Tom Brady jerseys won’t be flying off the shelves as quickly.
ALL ATHLETES of ALL SPORTS need to understand this ain’t the world of $2 a gallon gas and milk.
Upshaw needs to understand he represents current union members.
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April 24th, 2008 at 12:15 pm
The common wisdom espoused EVERYWHERE is that you build through the draft, not through free agency, because free agency is too expensive. It means you can replace a 30 year old veteran with 2 23 year old kids and still have money left at the end of the day.
So from a veteran’s point of view, more expensive rookies means they’re on a more even playing surface, and it comes down to comparative skill, rather than comparative skill and money.
Superstars with mega contracts don’t have to worry about getting replaced by a rookie, and they would be the ones with the windfall if rookie pay went down. But the average journeyman veteran who’s just fighting for survival probably worries alot more about having a job at all rather than whether his pay is $450,000 or $455,000 per year. And the journeymen have the votes in the union.
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