There are rumblings in the agent community and even in the media that the Matt Cassel deal was under market and a win for the Chiefs.
First, let me say that agents will always be the first to criticize other agents’ deals – off the record, of course. Most reporters have one or two agents they go to for source information and opinion. The agent will always find something to criticize because it’s self-serving, although the reporter needs the information and wants an opinion. Even when an agent does rip one out of the park, you’ll never hear one of his contemporaries praise him. The industry is filled with too much competitiveness and jealousy for that to happen.
APMatt Cassel
Consider the franchise tag of $14.65 million for QBs this year, which is what Cassel could have made this season, versus the security of $28 million in guaranteed money for a second-year starter. The fact he could have gone the franchise route again for a possible $17.58 million in 2010 does make this deal appear to be under market.
However, there are a few things to consider when evaluating this deal:
- Chiefs GM Scott Pioli is a hard-line negotiator. I’ve had about five dealings with him over the past five years, and I know that if I were an owner, my money would be well spent with Scott because he works in small increments and rarely overpays for players. You won’t see a lot of premium deals coming out of K.C.
- Scott knows Matt well and obviously doesn’t think he’s a one-hit wonder. Scott also knows that Matt probably benefited from the stable Patriots environment (system, players, coaches) and could struggle with a new cast around him in a less stable developing environment. Scott doesn’t want Matt to worry about having to set his value with a new team in a rebuilding year.
- Injury. It doesn’t pay to get insured anymore. The cost of career-ending insurance for players is astronomical and rarely feasible. Furthermore, it’s hard to collect, and insurance companies are often reluctant to pay. So the old days of playing out the year and insuring what would have been your guaranteed money simply don’t apply.
APChiefs GM Scott Pioli
- The downside. I’m sure Cassel and his seasoned agent know that 2009 can be a challenging year because of the meshing process the Chiefs’ offense will be going through. If Matt and the offense struggle, he and his agent would have lost leverage and possibly even a 2010 franchise tag opportunity. Ouch.
- Agents and players value deals on their three-year totals and guaranteed money. This one was about $27 million in guaranteed money and about $40 million for the first three years. An average of $13.5 million for three years does seem a bit below market, but if Matt struggles, he’ll still be paid. If he’s just average, he’ll be paid. If he blows up, well, he’ll be back at the table in 2012 with the leverage for a new deal.
As an agent, when there are too many unknowns or uncontrollable factors, such as new coaches and new systems, you have to take the money as the “known,” which is better than the “unknown.” If this is the highest Scott was willing to go, I also would have advised my client to take the money rather than the risk.
One more thing: Agents get paid only two percent of a contract if a player is franchised the first time, 1.5 percent the second time and one percent the third time – as opposed to being paid up to three percent for a negotiated salary. Maybe that’s one reason we don’t often see players play through consecutive franchise tags.
Considering that unless Brady got hurt, Cassel would still be making squat. 27 million guaranteed is fantastic and he's set for life. If he turns out to be a bust, he's got the cash. If he gets better, he'll still be young at the end of this deal and can get a better deal then.
danh,
the 3% is not automatic. each player has the right to negotiate his agent fee to a max of 3%. We get paid only AS the player gets paid on his EARNED dollars only. Most agents are guilty of floating MAX figures after a deal is done. The Cassel deal is solid. there is no fluff in the contract.
First, good article.
Second, you will see Thigpen play significantly this year. KC's offensive line is not the Patriot's and Cassel's weaknesses will be exposed.
Toomuchrock,
Mobility is not one of Cassels weaknesses, in fact, he moves around well and can take off running. He ran for many big first downs last year. That aspect of his game was much better than Brady's....
Who is their right mind thinks this deal is overvalued? I just read a good article from Jason Whitlock talking about how Cassel joins a large cast of QB's who have reinvented their career after a year w/ Moss and then fell off. I think Cassel's got a ton of upside to be frank but it seems like a good deal considering, had Brady played the entire year without Cassel seeing the field, he would have had a hard time finding another suitor.
The other major uncertainty in this situation is how the new O-Coord and/or Head Coach will run things. McDaniels did a superb job of limiting Cassel's exposure, tayloring the offense to his strengths, and allowing Cassel to acclimate to running the offense full time last season. If I'm Cassel, I'm more than a little apprehensive about how these aspects will be addressed by a new coaching staff on a rebuilding team which is new to me as well. Personally I think he got reasonable value from a team in a high-risk situation and like mentioned above, he's young and the deal is only for three years.
This pushes his reneg window past the agreement time.
It also pushes a possible a franchise tag three yerars down the road, that item is probably being saved for other veterans who were high picks. Bowe, or any of several defenders come to mind.
Whay isn't ANYONE discussing the fact that if Cassel hadn't been extended, and next year was uncapped, he would NOT have to be re-franchised? The Chiefs would have had total control! And of course, there was no guarantee Cassel would have been refranchised next season (or even re-signed).
The reason this deal is below market is because IF Cassel really is the savior, he's locked in for cheap over the next five years. The only risk the Chiefs took was his 2010 salary. And even if Cassel is horrible this year and has to be cut, the Chiefs will be under the cap in 2010 (assuming there is one!)
Matt,
I'm still trying to figure out how Cassel's deal is a bit under market? He was a partial product of the system and talent he had on the offense when he stepped in. Even so, his numbers weren't THAT great last year. If Cassel's contract is undervalued, then what is Aaron Rodgers 6 years/65 million contract that he signed last year? His performance was quite a bit better than Cassel's as he beat him in every statistical category at the QB position, as well as Peyton Manning-- the league MVP.
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Jul 17, 2009
01:20 PM
Thank you for the post.
My question is do the agents get paid 3% of the total earned value of a contract or the stated (often inflated) amount of the contract like Haynesworth?