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It seems like every year there’s one negotiation that stands out as the last remaining battleground between a player and a team. The fact that this year’s last man standing is Michael Crabtree is not surprising, for a few reasons:
Crabtree appears to have a “herd” of enablers around him, including a cousin who’s a self-proclaimed adviser and enjoyed his 15 minutes of fame earlier this summer when he announced that Crabtree might sit out the season;
APReceiver Michael Crabtree remains unsigned by the 49ers.
Eugene Parker, Crabtree’s agent, is going to pursue his concept of “value” to the fullest extent and will be pleasant, professional and maddeningly patient in trying to get the deal he wants;
The 49ers were admittedly elated when Crabtree fell to them in the draft and have not wanted (and don’t want) to inject a contentious tone into the negotiations.
The deadline has passed for any potential trade of Crabtree; that ship sailed on Aug. 14. Crabtree will be a 49er. Pay no attention to the rumor of him sitting out the season.
Now there’s a report of a requested meeting by the president of the club, Jed York, to try to inject a fresh new voice into the negotiations, which have been handled by the club’s able contract negotiator, Paraag Marathe. This is a nice public relations move by the team to show it’s doing everything it can to sign the player, although probably not something that will have much effect.
This negotiation has been dissected by many, including myself and my NFP colleague Bob Boland yesterday. Here, though, is a more in-depth look into the issues and the points of contention that may be taking place:
Term
Parker’s calling card is to try to negotiate the shortest length possible on contracts. In Green Bay, I negotiated two first-round picks with him in the past five years -- for Ahmad Carroll in 2004 and Justin Harrell in 2009 -- and like clockwork, Eugene’s first and foremost request was a contract of four years in length, matching the number of years required to reach free agency. Parker understands that the most important thing about a first contract is to set up the second contract, where the true money is made.
Recently, Parker has negotiated two remarkable wide receiver contracts, those of Larry Fitzgerald in 2008 and Greg Jennings in 2009. Beyond the top-of-market APY (Average Per Year) and guaranteed money of these deals, Parker was able to have a term of four years in length, allowing both Fitzgerald and Jennings to have another shot at the free agency spending spree before they turn 30. These are gold standard contracts.
APJason Peters became the highest-paid offensive lineman in the league this past offseason.
When I negotiated the contract of Jason Peters for the Eagles with Parker this spring, Peters was made the highest-paid offensive lineman in the NFL, but only with a six-year term. Parker fought hard but eventually agreed to a six-year deal kicking and screaming along the way.
Although there hasn’t been a four-year deal in the first round for 10 years – not since Parker client Chris McAlister in 1999 -- Parker will try with Crabtree, knowing he will have to let go of that demand but try to use it as a bargaining chip for a concession. He does not have any leverage to ask for that term.
These deals are for five or six years. The 49ers are willing to pay more guaranteed money to have a six-year deal, but Parker will take less to have the five-year term, a term he will accept while feigning disappointment to not get a four-year.
Total Base Contract and Guaranteed Money
Despite all the banter about whether Crabtree, the 10th pick in the draft, deserves to be paid like a top five or top seven pick, that argument is a nonstarter -- and Parker is smart enough to know that.
The contract of B.J. Raji at No. 9 is the most relevant. Normally, the team would try to slot in Crabtree between Raji and the 11th pick, Aaron Maybin, but the 49ers have generously not even tried to slot Crabtree, focusing on the Raji deal above.
Raji has a five-year deal (it’s written as a six-year but voids to five with minimum play time) with a conventional option bonus/one-time incentive structure. The base deal is worth $22.5 million; the guaranteed amount is $17.7 million (79 percent of the base contract). The increases from the 2008 pick, Keith Rivers, are 14.6 percent for total and 14.7 percent for guarantee.
This is essentially the deal that the 49ers have offered, bringing Crabtree right to the brink of the pick before him. It has not closed the deal, however, a huge source of disappointment for the club, as it would be for me if I were doing this deal.
The Escalator
APJeremy Maclin is an example of a draft pick whose contract contains complicated escalators.
The escalator provides upside in the contract based on the player’s performance. This is where things get tricky. In negotiating another first-round receiver’s deal this summer, I spent many more hours on the negotiation of the escalator than the hard dollars of the deal on Jeremy Maclin’s contract with the Eagles.
Issues to be resolved include the following:
- the year(s) in which the ability to escalate kick in;
- the year(s) in which the salaries start to escalate;
- the thresholds for the ability to escalate -- number of receptions, number of touchdown receptions, amount of reception yardage, playing time percentages, etc.;
- ability to void the contract prior to expiration due to superior performance;
- honors escalators for all-rookie, rookie of the year, Pro Bowl, other honors.
These are all negotiations in themselves, creating upside for the player beyond his base contract. The 49ers are certainly trying to adjust these escalators to penalize Crabtree for time missed this year, while Parker is trying to infuse these escalators with easier thresholds and levels of performance while pushing most of the performance criteria past this season.
Parker created a monster with the rookie contract of Fitzgerald, who earned so many escalators early in his contract that the deal became unworkable for the Cardinals, with cap numbers approaching $20M in the latter years. Thus, Fitzgerald and Parker had extraordinary leverage in last year’s extension with the Cardinals when he received the striking contract discussed above. This is what the 49ers are trying to avoid with the escalator.
Raji had a maximum escalator of $6M, with $5.3M of play time, $700,000 in honors incentives. $1.8M of the escalator was in the fourth year, $4.2M is in the fifth year. Parker is seeking considerably more, in line with Darrius Heyward-Bey’s maximum escalator of $15.8M, although $6.5M of it is what we consider “fluff”, escalators that rival the performance of a Jerry Rice or Randy Moss -- funny money that the team doesn’t expect to be earned.
First-Year Money
APWhat's next for Crabtree and agent Eugene Parker?
The 49ers would like to have a larger base salary to inflict some sort of penalty (1/17th per week) for Crabtree missing these games early in the season.
Parker and Crabtree want the minimum salary, meaning that Crabtree is only missing out on 1/17th of first-year minimum ($310,000, or $18,000 a week)) and the rest in the form of roster bonus or signing bonus, earnable upon signing the contract, unaffected by this holdout period.
So, to answer a question many people have emailed me, what would I do if I were representing the 49ers? Not much different than what they’ve been doing, but here are some guidelines:
1. Maintain a positive working relationship with Parker despite the holdout. Patience is required here because Eugene is as composed as they come and will not be influenced by fan or media pressure to sign. He has probably imbued Crabtree with some of the same.
2. Try to cut through the charade of the player wanting to be paid outside of the slot. For every argument like that, the team could say that if they didn’t draft him, he may have slid way down the draft and they could be negotiating around the fact that they saved him a lot of money by taking him. He was the 10th pick, for better or worse.
3. Offer a substantially similar APY and guarantee as the Raji deal, a generous offer off of a reasonable deal done by the Packers. It’s more than the 49ers want to pay and takes the deal to the brink of jumping the slot ahead and potentially rewarding the player for holding out, but my sources say that deal has been contemplated all along.
APDarrius Heyward-Bey was the first receiver taken in the 2009 draft.
4. Offer upside escalators between the amount of Raji and the amount for Heyward-Bey, although have a great deal of “fluff” in the escalator -- performance levels only achieved by the top receivers in the game. This lets the player shout to the world that his contract has a maximum value of, say, $35 million, while everyone inside the industry knows it’s really a deal of $22M, with another $6M of reachable escalators. The team will also make sure the escalators are evenly balanced for performance in years one through four, extracting a penalty for missed time this year.
5. Insist on a six-year term, knowing they would agree to a five-year term. I believe, however, they are beyond posturing about years at this point.
6. Insist that much of the compensation for 2009 be in the form of guaranteed salary rather than a combination of that plus signing bonus, roster bonus, etc. With a cap number of $2M, if the entire amount was salary, Crabtree would be losing $118,000 per week missed, a $100,000 difference compared to what he would be losing with minimum salary. With that structure, the team does not need to make hollow threats about lowering the offer. It will be lowered automatically.
7. Be as nice and patient as possible. The more that Parker, or any agent for that matter, can create angst and anger from a front office, the more they are getting inside the heads of management. Never let your adversaries become your enemies.
8. Crabtree appears to have a healthy opinion of himself. I never engaged in personal discussions of “who’s better” with agents or players; there was nothing to be gained from that. I would appeal to Crabtree’s sense of self with heavy upside at high levels of performance. One tenet of negotiations that I hold paramount is the following: Never underestimate the importance of ego and insecurity.
The 49ers do a good job in contract negotiations and have certainly thought through all of these issues. This is a tough one, but the mark of a good negotiator is to never let them see you sweat. The 49ers have to be frustrated, as are their fans and media, but they have to keep their eye on the ball. As they know, these few weeks are about five years of contract. This, too, shall pass, and the Crabtree summer of discontent will be a distant memory...I think.
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Great article Andrew, as a Niner fan the whole episode is really frustrating. I had read that the Niners had offered Crabtree $1 less than Raji's contract? I just wish that players understood that they are getting paid to play a game and that it doesn't matter how much they earn if they love playing. Most players, even on minimum salary earn more than the majority of people and should think themselves lucky to have the ability to play the game and get paid to do it, or is that just being naive?
Andrew,
Does the team get any sort of compensation if he fails to sign and goes back into next year's draft?
I think your negotiating guidelines are good, but at some point you have to put some heat on the other side. Why not give him a deadline, say Monday? Otherwse, it seems inevitable that this will go to the November 17 deadline for signings. That would mean this season is a total writeoff and probably a good bit of next year as well, given how long it takes rookie Wrs to get up to speed.
Is it true that the team will still control his rights until the next draft, even if he doesn't sign, and he cannot work out for or even talk to other teams or attend the combine? It seems to me the team has an awful lot of leverage here, unless he is a total moron.
I'm confused. Raji got $28.5 million and Heyward-Bey got $23.5 million - both for 5 years. So why wouldn't Crabtree accept Raji money?
I'm confused. Raji got $28.5 million and Heyward-Bey got $23.5 million - both for 5 years. So why wouldn't Crabtree accept Raji money?
I'm confused. Raji got $28.5 million and Heyward-Bey got $23.5 million - both for 5 years. So why wouldn't Crabtree accept Raji money?
great insight. definitely gives us niners fan a better understanding of the nature of the holdout and a glimmer of hope that a deal can be resolved. i think most of us fans, if we were york, would have done the exact opposite of your suggestion to keep good relations and we likely would have just stuck it to them already by lowering the offer.
The time for playing patty cake with Parker is OVER. It's time to call their bluff and say this is the deal, if you wan't to lose millions, go ahead and go into next years draft.
"Never underestimate the importance of ego and insecurity."
Nor should one overestimate intelligence.
You have given me a different perspective on Parker/Crabtree. I was truly starting to believe that he might be considering a holdout until the draft, which would indicate a lack of intelligence -- for him and Parker -- as the money would surely be less.
This makes me think more and more that it is Parker's game and though he has no intention of letting his client go back into the draft, he is going to squeeze the 49ers as much as possible. But he can squeeze away as he still does not have much leverage.
Sure -- be polite 49ers negotiating team. Go ahead and find a way that gets him more money, or the appearance (for the ego sake), but does not blow up the slotting system, and both sides can walk away feeling they did ok.
Thank you for your knowledgable and considered insight on MC. Here's mine. I don't care if he sits out one year or forever. He's an untried rookie who thinks he's the best thing since Jerry Rice. Fine. His practical value for year one has diminished because he's missed camp etc. This isn't college. Rare are credible receiver contributors. Not so rare are first round busts a la Harrell and Carrol. Besides SF doesn't even have anyone to throw him the ball.
Notwithstanding that, if I was SF, I'd tender a sliding offer offering him less and less as time rolled on. Take it or leave it. Discuss it with Parker, your cousin, your pals, and get back when you can. The Sun rose before you, and it will rise again.
It is also my hope (against hope) that the NFLPA will wake up to the benefit of a fixed scale for rookies, allowing proof in the pudding.
Maneater: Yes the 49'ers would get compensation if signed by another team in next years draft. However, I'm not sure of the specific details.
Seems to me that Crabtree has absolutely no leverage. This team doesn't miss him because they don't know him. His ability to thrive in the NFL is very much in doubt, for reasons having to do with his health and his college system. He cannot work out with any other team prior to next year's draft, and he is establishing himself and a huge headcase and headache for any team that might want to draft him next year.
To think that he could improve his draft position next year over this year is just ludicrous, and the 49ers should be lowering the offer each week, with total willingness to let this jerk walk. He will be a laughingstock next year when he signs elsewhere for FAR less than what the Niners offered.
any chance of the 49ers walking away and taking their offer off the table?
To Meateater: According to former Giants GM and now Nfl Network Analyst, Michael Lombardi, the Niners own the rights to Crabtree all the way to the draft (and maybe even during the draft if I heard correctly- thus a team would have to deal with the niners in order to draft him?? not certain there).
Thus, Crabtree can NOT join the Combine. If he wanted NFL scouts to come watch him, he'd need to hold is very own PRO DAY funded by Crabtree himself. However, here's the kicker: The Niners can veto ANY and ALL scouts from showing up if the choose since they'd still own the rights to him up until the draft. Thus, he'd be running 40 times by himself if the Niners want it that way.
The idea of him going ANY higher in next year's draft is rediculous. As many articles have written (along with this one- kind of), NO GM will draft Crabtree any higher than he already is. Hence, it's an impossibility that he make a single penny more than what the Niners are offering should he choose to go into the 2010 draft. The holdout really has no legs at all... except for the fact the team could REALLY use him.
As a 49er season ticket holder and lifelong fan, I was STOKED to find out we drafted him. I sincerely hope that rookie salary caps come up in next years owners meetings along with the negotiations with the NFLPA.
All in all, it's sad for all parties involved. This guy is supposed to be the best WR prospect since Larry Fitz. Instead, the Niners (who have suffered through enough first round busts to make the Lions look good) waste another needed pick.
That's my 20 cents worth...
I find this article both insightful and reassuring. Thank you for giving us anxious fans an inside look into the negotiating process. I share your optimism regarding the resolution of this standoff. I hope this concludes soon and sanctimoniously.
So what your saying is hes great at getting "bust" draft picks paid well then???? Since both Harrell and Ahmad Carroll were both clearly busts..... Though I suppose having Fitz and Jennings makes up for some of that
Is Parker financing this debacle? What are the details of Mr. Crabtree's finances?
I am sick of this diva punk. The Niners would be stupid tosign Craptree at any price. He will bring nothing but headaches to an already struggling team.
Andrew makes an excellent point. As a professional negotiator, you cannot allow your peersonal feelings to get in the way of making a deal that will be beneficial for you. In this case, there would no doubt be a lot of satisfaction in telling Crabtree and his agent to piss off, but you have to ask if that is best for the team going forward? Of course, there is a bigger picture question as well. You don't want to give in to them and thus encourage other agents to try this tactic in the future. Which is more important at this point? I'd say we're close to the point that no deal may be better than appearing to reward Crabtree's approach. As a negotiator I would be emphasing to the agent that he was putting me in an impossible situation. As much as I wanted to sign his player, I can't do it if it means I have to go through this every draft for the foreseeable future.
I think Parker has overplayed his hand and the Niners have the leverage now. In their shoes I would insist on a six year deal on the ground that this year is a total loss. What's Crabtree's option? Sit out the entire year and risk being a second day selection next year?
marcopo - The 49ers will NOT be compensated if he goes back into the draft. Not going to happen though. Why would it? There is no upside for Crabtree unless for some reason he just does not want to play for the 49ers which I do not think is the case.
Andrew - Really informative article. Thank you for giving us a much better perspective about what is involved in these negotiations.
Thanks for these insightful, informed and kind comments. Hopefully I have shown that this is more than filling in numbers for the slot. The DHB deal in Oakland has complicated things but at the end of the day, there is a deal to be made.
No, the Niners don't get any compensation if Crabtree does not sign. The deal that they have in place that is similar to Raji's deal is fair. The Niners just need to impose a deadline and see if Crabtree is serious. If he holds out til the draft, that just means the Cowbuys tampered and Jerry Jones has already promised him a deal, after the Cowboys trade for him. Trust me the Cowboys will trade for him after the March 1 window. Then the Noiners should pursue the tampering charges.
The Niners are going to win without him anyway, thereby creating even more leverage. Niners can't allow Parker to drive the bus. If the fanbase supports the move of giving the ma deadline, and the fans do support it, then they will accept the outcome. Crabtree could never fit Singletary's profile of a team player.
marcopo Sep 18, 2009 07:41 PM - "Maneater: Yes the 49'ers would get compensation if signed by another team in next years draft. However, I'm not sure of the specific details."
---
No, the 49ers would get *absolutely nothing* from the league or anyone else if they are unable to trade Crabtree's rights between March 1 and April 22 2010.
CRABTREE IS A REAL JACK--- IN MY BOOK NOW.
FROM THE WEST TEXAS AREA YOU LOVE YOUR T.T FOOTBALL AND NEVER LIKING THE COWBAOYS I BECAME A NINER FAN YEARS AGO. WHEN CRABTREE WAS PICKED TO BE A NINER THAT REALLY MADE MY WEEK BEING A FAN OF BOTH TEAMS AND COME TO FIND OUT HE THINKS HE IS TO GOOD FOR THE NINERS WELL SIR YOU LOST A LOT OF RESPECT POINTS.
YOU THERE ARE A LOT OF KIDS OUT THERE THAT WILL NEVER HAVE HAT CHANCE AND CAN PLAY BETTER THAN CRABCAKE ECT ECT, AND WOULD KILL AT THE CHANCE TO PLAY FOR WHOM EVER DRAFTED THEM, WAKE UP CRABS AND JUST BE HAPPY THAT YOU DO HAVE A CHANCE AND STOP ACTING LIKE T.O. AND MANY OTHER CRYBABIES IN THE NFL CAUSE NEXT THE CHANCE MAY OR MAY NOT BE WAITING ON YOU....TO END THIS CAUSE AS A TECH AND NINER IT REALLY CHAPS MY ___ TO KNOW PEOPLE CAN ACT LIKE THIS AND GET AWAY WITH IT IF YOUR SO UNHAPPY TRY LIVING ON WHAT I MAKE A YEAR, IT'S GETTING TO THE POINT WERE I AND MANY OTHER PEOPLE WILL STOP WATCHING FOOTBALL CAUSE OF PLAYERS LIKE THIS LIKE I'VE DONE WITH THE NBA,,,PS I LIVE IN INDIANAPOLIS IN AND WAITED 10 YEARS OR SO FOR THE NINERS TO COME BACK TO PLAY THE COLTS AND NOW YOUR NOT LOOKING LIKE YOUR GONNA BE WITH THE TEAM CRABS,,WELL YOU JUST SUCK.
Re: TO BARELY FREAK... The owner of the game is always the house.
Personally, it looks to me like Parker has selected the wrong player to try and usurp the NFL slotting policy with... Because as wonderful as Crabtree was at Tech with his ability to get open there are still questions about him at the Professional level. On a scale of 1 to 10 with 10 being "Cat-Fast," and 1 being "fat-man" slow," Devon Hester, and Johnny Knox are what it means to be "Cat-Fast," and Tony Siragusa being the fat-man....
Crabtree is a slow receiver to be a top 10 draft pick, then add on the fact that the Niner's are learning that his EGO is trouble right along with his agent Parker, he is going to be worthless this year if he misses 2 more games, wouldn't it be in the San Francisco Forty-Niner's front and Office, and fans to just throw this one back in the water? They will not have lost anything (accept for the number 10 player this year...
Now, speaking as a fan and a person, I have never been able to stomach a Human Being who cannot play by the rules, and who knows what they are of getting into from before the draft... It is NOT fair to everyone else... Just so long as Crabtree doesn't come to Arlington, Texas I don't care what happens to the pain the arse...
Best of luck to you Niner fans, I am sorry you are being forced to put up with that lame B.S.
I've been reading some rumors that Crabtree possibly has necrotic bone disease from the surgery on his foot, and that his foreknowledge of a shortened career is what is really behind his "holdout." That, in essence, he's doing all he can to get the largest amount of guaranteed money without playtime so he doesn't tip his condition. Do you see any truth to this?
It always amazes me how much these guys get paid.... and for what?? To play a game?? Yes it is a great game, but it is still just a game... And now we have a guy who has not proven himself at all holding out for what can only be assumed is more money. Why? Has greed gotten the best of everyone in the world? Don't get me wrong.... yes you should get paid for doing your job, but if anyone else in the world were offered a job and they screwed around with the perspective employers like this kid is .... Well, they would just get someone different. Why does this kid think he is so much better than the 9th, 11th or even the 12th pick?? He is already being offered more money than his entire family in all their time working has made in their lives..... Be happy and feel fortunate that you have been given the PRIVLEGE TO PLAY IN THE NFL...... yes it is a PRIVLEGE FOR HIM..... NOT the NFL!!! This guy just needs to realize that he really is not doing himself any favors by holding out….The other players, front office and fans are just getting a bad taste for him and his arrogance.
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Sep 18, 2009
01:21 PM
This was