Extension gives struggling QB a guaranteed $13 million. Andrew Brandt
On Thursday, it was announced that Carolina Panthers quarterback Jake Delhomme would be sidelined this week, replaced by Matt Moore as the starter Sunday against the Buccaneers. Ostensibly, the reason for the change is a broken finger on Delhomme’s throwing hand, although there are many who believe the injury is an opportunity to make a change in a disappointing season for the Panthers (currently 4-7). With eight touchdowns and 18 interceptions, things were not going as planned for Delhomme.
The decision to extend
On April 23, the Panthers extended Delhomme’s contract – set to expire at the end of this season -- through 2012, with additional options for 2013 and 2014. Despite last season’s lingering disappointment of five interceptions in the playoff game against the Cardinals, the team saw fit to extend the contract of its 34-year old quarterback for five more years. With the extension – completed a few days before the 2009 NFL Draft – the Panthers picked up approximately $3 million of cap room, enough to pay their draft class. They were bumping up against the cap – and had done a few other cap restructures -- after placing a $16.7-million franchise tag on Julius Peppers.
With the possibility that Delhomme might lose his job depending on Moore’s performance against the Bucs, let’s look at the commitment made to him last spring. Although the total amount of the deal is $42M, the chances of Delhomme earning all of that are about the same as you or me making that $42M. Here are the real numbers.
This year
The current season remains essentially unchanged, paying Delhomme a guaranteed $3.2M salary along with a $3.125M signing bonus, giving him the same $6.325M – although now fully guaranteed – that was due prior to the extension and cutting his cap charge because half the money in a prorated signing bonus.
Next year is where it gets a bit complicated.
The two options
The first option – exercisable between March 1 and May 15, 2010 – calls for $12.7M to extend the contract through 2013.
What happens, you ask, if the Panthers don’t exercise the option during that time frame? Well, there is a “non-exercise fee” payment of $10.14M to Delhomme, or 80 percent of the option amount.
The second option – exercisable between March 1 and Sept. 1, 2011 – is for $3.4M to extend the contract through 2014.
What happens, you ask, if the Panthers don’t exercise the option during that time frame? Well, there is a “non-exercise fee” payment of approximately $2.535M, or 75 percent of the second option amount.
These options of a collective $16M combined with the $6.325M guaranteed this season for a total guarantee of $22.38M.
If the Panthers do not exercise the options, the combined amount of the non-exercise fees is $12.7M, which combined with the $6.325M guaranteed this season equal a total guarantee of $19M.
Superseding contract
The Panthers also have the right to “supersede” the contract during a three-week time frame between late April and early May 2010. This would require paying Delhomme a signing bonus of $10.14M, the same figure as the non-exercise fee of the first option above. In superseding the contract, the options would become null and void and the contract would expire in 2012.
In the event the Panthers elect to do the superseding contract, the future salaries would become non-guaranteed for 2011 and 2012, although $2.535M of the 2010 salary – the exact amount of the second option non-exercise fee – would be guaranteed, bringing the total guarantee through the supersede to that same $12.7M figure above.
Release prior to options or supersede
What happens, you ask, if the Panthers simply release Delhomme prior to March, never reaching the time frame to exercise the option, pay the non-exercise fee or supersede the contract? Good question. The short answer is that they’re not off the hook.
The contract provides for guaranteed salaries in 2010, 2011 and 2012. The guaranteed salary ensures payment to Delhomme even if he’s terminated (his contract, not him).
The guarantees are for skill (not being good enough), injury (having an injury carrying into the next year) or cap (having too high a cap number). The amounts of the guarantees are:
2010: $4.16M
2011: $5.12M
2102: $3.4M
Predictably, the total guaranteed future salary amount of approximately $12.7M is the exact same amount as the first option. Upon exercise of that option, the future guaranteed salaries become null and void, replaced by far lower salaries that are not guaranteed.
These guarantees serve to protect Delhomme from being released prior to next season, an eventuality that looked nearly impossible to the team a few months ago yet would seem certainly within the realm of possibility now.
Of course, the guaranteed future salaries are necessary for Delhomme to have entered into this extension rather than playing out his contract. No player or agent would agree to an extension that allows a team to simply release the player without consequence. There is no reason for a player to sign an extension without putting him in a greater financial position than not having one. Delhomme’s agents protected almost $13M for him no matter what the circumstances after 2009.
Four ways to $13M guaranteed
Thus, the Panthers can release Delhomme prior to next season and subject themselves to almost $13M of future guaranteed salary. Or they can supersede the contract and pay the same almost $13M guaranteed through signing bonus and guaranteed salary in 2010. Or they can exercise the future option payments and subject themselves to the same almost $13M guaranteed (or over $16M guaranteed with the exercise of the second option). Or they can opt not to exercise the options and subject themselves to the same almost $13M guaranteed through the non-exercise fees.
The above is a detailed way of saying the Panthers are on the hook for almost $13M guaranteed to Delhomme, a player who will be 35 in January and whose contract they could have let expire at the end of this season with no future obligation.
Hindsight
Let me be clear: I think the world of Jake Delhomme as a person. When I was with the Packers, we brought him in as a restricted free agent, and he commanded the room with his charismatic and extroverted personality. He is a shining example of someone who waited his turn behind other quarterbacks and took advantage of the opportunity when it was put in front of him.
However, things went south for Delhomme in his last performance of last year. It did not appear to be the environment for an extension of a contract expiring with $6M due this season.
The Panthers, though, did extend the deal, whether through extreme loyalty to Delhomme, fear of Delhomme becoming a free agent in an uncapped year, cap problems or some combination of these reasons. They will now deal with that decision.
The Delhomme contract proves the mantra that all NFL front offices realize at different times: Some of the best deals made are the ones that are not made.
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With no cap next year can the team restructure the deal pay him his 13 million and bid rid of the cap exposure for future year?. your insight to how the uncapped year could be utilized to get rid of contracts would be great.
In a world of obscenely excessive contract, this one seems to be the dumbest ever, regardless of the rationalization. If I were Jerry Richardson, I would release Jake on the lease expensive term possible (still in the millions) fire anyone who recommended this and if it Richardson approved it he should fire himself. What a travesty. Jake should be ashamed to cash the checks despite his wonderful charisma.
I said "oof!" at many points during the reading of this article, whenever you gave another dollar amount.
BUT
The conceivable upside of keeping Delhomme around is that, next year, they draft their QB of the future and have him sit behind Delhomme and learn the ropes for a year or two. Y'know, as awful as Delhomme is in certain situations, he can manage a game if the Panthers just keep their offense in the towing gear by relying on the run game.
The problem, of course, is that they don't have a first round pick (which, again... oof!) They've just got to trade for one. Maybe they could put Peppers back on the block and hope that some GM out there hasn't really been following the league too closely for the past couple years. ...like, maybe create a diversion to distract Bill Parcells and then pitch the idea to a member of the Dolphins ownership team... Gloria Estefan or Marc Antony maybe? Either of the Williams sisters would do in a pinch. I'd recommend Serena. Venus is too sharp. In fact, probably best to create a diversion for her too.
The most shocking number is the $16.7 million franchise tag put on Julius Peppers. Between that number and the extension to Delhomme, a C + to B - quarterback at best, the Panthers have really hung themselves. Could be worse, though: they could be paying off Charlie Weis.
Andrew, The word here in Charlotte is that Jake is married to Richardson's daughter or niece or something like that, and that signing Jake to that extension was one of the reasons the sons quit the team. Any truth to that?
No, Sonny. Not unless Richardson somehow fathered a child with the last name of Melancon who's from Louisiana. But hey, don't let facts get in the way of your argument.
And Pete, Delhomme has consistently been one of the winningest QBs in the NFL. Just hard to do well with just one above-average pass-catcher on the entire roster and poor pass blocking most every game.
Michael, thanks for the reply. Since Delhomme joined the team in 2003, the Panthers are 60-47, including this season, for a 56% winning percentage. Delhomme has not had consecutive winning seasons in his career. Individually, Delhomme has only produced one Pro Bowl-level season. In 2004, he threw for 3886 yards with 29 TDs and 15 picks. Since 2003, Jake has thrown 120 TD against 89 picks.
At best, Delhomme is a second tier quarterback. The contract extension money seems excessive at first glance, but the 5 year deal is really a 3 year deal for the $24 million guaranteed money. $8 million per year is a reasonable rate for a veteran QB following Eli Manning's and Phillip River's blockbuster deals. If Delhomme can rebound from this season's dreadful performance (8 TDs, 18 picks), the extension may be a good deal for the Panthers while they search for Delhomme's successor. If Delhomme has hit the wall, that $24 million becomes a cap albatross.
Regarding his offensive line, it appears no worse than other successful teams. Delhomme's sack rate is 5.7%. That compares with Tony Romo at 5.4%; Philip Rivers at 5.5%; and Eli Manning at 5.2%. (I tried to think of pocket passers that have been with their teams for 4 to 6 seasons. These guys came right to mind; I didn't check anyone else.) In three of Delhomme's seasons, the Panthers have had a top 7 or better running game. In three seasons, they were 19th, 24th, and 28th. One season they were middle of the pack at 14th. Nothing here to suggest that he's played with a subpar line his entire career.
As far as his receivers, one could argue that Delhomme was blessed to play with one superstar receiver, a true game changer in Steve Smith. Few quarterbacks throw to players of Smith's caliber or benefit from the defensive attention directed to that superstar which opens other offensive avenues.
I'm not anti-Delhomme. I've always considered him just a guy.
Micheael Procton.... I wasn't making an argument, only saying what the word on the street is in Charlotte.... It got legs because no one can figure out WHY Richardson would sign this BUM to such a sweet deal....it had to be nepotism....LOL
YOU on the other hand must be a Delhomme family member to think that Jake's "poor play" as you put it, is because he doesn't have receivers or an effective O-line....
What games have you been watching? The guy is beyond BRUTAL.... The guy has a good running attack and still can't hit on play action passes and is inaccurate beyond belief...
I understand that Carolina is on the hook for 12.5 million in salary, but it can obviously cut Jake next year and not suffer any cap consequences, right? So the "guarantees" don't have quite the force that guarantees normally have in the capped system. Sure, it would suck to eat that kind of money, but NBA franchises eat that kind of cash all the time. So the question is this - does the revenue situation in Carolina mandate that the team keep Jake, regardless of his performance, or is it feasible for Carolina to dump him in the uncapped year.
OK enough take it on the chin! Get rid of Jake and Peppers! As a fan from the start we deserve better. Don't care about what he's making! I want to see Carolins in contention and Fox has taken this team as far as he can. New coaches new start!
I wouldn't rule out that there may be some type of physical issue with the arm as well. That definitely needs to be checked out. Watching some of his throws this year, it looks that way. Not bad decisions all the time, bad throws ....physically. The affects of surgery he had is an unknown factor with QBs. I know he's never been a precision passer anyway but on certain throws he doesn't seem to have the same zip/accuracy he had last year.
As a PSL owner I am ashamed of this Jake Joke of the league. What were they thinking 6 turnovers and here are millions of dollars. Sounds like a bank CEO
Hey guys! You are all worng. The front office should be fired, must be fired, and if not fired, then the entire team is in the hole and cross hairs of L&O SVU, with Tiger Woods in the Captains seat. Sorry Tiger, your white-eyes are just too revealing! Can you say, "Bend over, darling"?
Fire those ignoramus execs who know nothing but how to hide from the news media. And while we are at it, where was this news media when thes idiot exec decisions were being made?
Hmmm,,,, maybe Madoff had it right after all. Just screw the pouch, and the suckers will keep conributing.
O.K. granted Jake is not the greatest QB but the smart thing is trade peppers to tampa, or oakland,or washinton for a first rounder if you can get one or a second and third then trade your two second round picks for a first. Then use that pick to get a QB and keep Jake one more year for backup. Use the money freed up by peppers to get two defenceive players and another receiver, that should work...
Andrew, great article. Thanks for uncovering the mystery of the Delhomme and Peppers deals. For months I too have thought that there had to have been nepotism involved in order for Delhomme to get anything other that shown the door. We need a fresh new start, new coach and new quarterback. New quarterback as in from outside of the organization.
Hey I'm a pure Panther Fan imwhich I was a Redskin Fan until we got a team, wish you could see my Panther Lounge{basement}. I'm from NC, but live in MD, I went to the 2003 SuperBowl. So in 2009, I had a Playoff Party on January 10th, building up to hopefully another SuperBowl. Around 8:45 Jan. 10th. my downfall started. I had a house full of all kinds of football fans that came to cheer my team on. Is Bill Cower or Mike Vic coming to town? Can we get any relief?
M. Cook, I'm with you. Time to loose the dead weight. Working on our front line would be a great start after getting rid of the QB and coach.
When the running game is working we dont need Delhomme to pass as much but when we have to throw to stay in the game or try to come from behind Delhomme kills us. I hold my breath everytime he throws a pass. I will admit he has moments of greatness and then sometimes he leaves me confused at his decisions. But as far as the contract carolina WHAT WERE YOU THINKING??????????????????????????????????????????????????????????????????
let him and stay and play...
woow,woow, keep going! Don't stop....
I think Delhomme is such a great quarterback. I cannot understand why the panthers let him go. He had one bad year just like any other quarterback. I think they will regret this.
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I have been a Delhomme fan for a while. I hate that he got traded. I hope he does well in Cleveland.
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The word here in Charlotte is that Jake is married to Richardson's daughter or niece or something like that, and that signing Jake to that extension was one of the reasons the sons quit the team. Any truth to that?
I think Delhomme is such a great quarterback......
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2102: $3.4M
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As much as Delhomme appears to be a lost cause, I think they will bring him in for another year but not with a guarantee to start. (Fans would go nuts if Jake was handed the job next year without competition.) Cutting him will cost a ton as you point out and will also be an admission by the front office that they screwed up--which should be obvious to everyone. But, and I know its probably a long shot, maybe he could bounce back next season and redeem himself and those that signed him.