The Timeline and Cost of Revis' Potential Holdout
With more rumors swirling about Darrelle Revisí unhappiness with his contract and potential of holding out I wanted to put together a timeline of when it would happen and what the financial ramifications I believe would be. Now I have not changed my stance as to why I think this move would be incredibly stupid for Revis since the Jets presently hold all the cards, but this should at least put into perspective when this will actually all go down if it gets that far. Now as a disclaimer, this is completely uncharted territory because of the new CBA and their new holdout language clauses which I donít think anyone is familiar with just yet. This is my interpretation of those rules and I admit may not be 100% accurate.
Would Revis hold out this week?
Probably not. The reason for that is primarily money related. Revis earns a workout bonus of $1 million dollars upon completion of the 2012 workouts. While I do not know the particulars of how he earns the bonus it is likely going to be for participation in at least half the dates so it means he has to appear for a majority of OTAís. This looks to be free money for Revis that is not included in the holdout clauses in the new CBA since you can not forfeit money already earned. So he pockets $1 million in cash whenever he completes his schedule. Thatís a nice chunk of change to sit on. Most likely that means the daily Revis watch that is about to begin is a waste of time at least for a few more weeks.
So when will he hold out?
The holdout will likely begin on the second day or so of training camp and not during the current workout sessions. Again I believe this is money related. Revis earns a reporting bonus of $1 million dollars when he reports to camp. Typically those are earned once you show up, take your physical and report to camp. So by showing up ready to go Revis earns $1 million more dollars. If he holds out before that he canít earn the $1 million. So it pays to wait. Then on day 2 or 3 he will leave camp.
Now the reporting bonus, unlike the workout bonus, falls under the holdout penalty clauses so you may think what is the point in reporting to just have to return the money to the Jets? It seems that under the new holdout terms for the CBA the amount of money that can be recovered by a team is actually dependent on years remaining on a contract. Though a reporting bonus is not accounted for in the manner a signing bonus is, for the purposes of forfeiture the bonuses are prorated over the remaining terms of the deal. Revis technically has 5 years remaining on his contract. Most likely that means this money will be prorated over 5 years, which includes the voidable years, just as his other bonuses were. Those voids disappear once he holds out as well. So it seems as if he is in a position to keep $800,000 and only forfeit $200,000. That is why it pays to report and then hold out rather than hold out now. More free money for Revis.
What are the potential fines?
First we need to define exactly what will be in Revis ďforfeitable salary allocationĒ. Revis received an $18 million option bonus in 2011, but that money will be his to keep. One of the few wins for the players in the CBA was to only make the option bonus part of the calculation if the player held out in the season he was paid the option. Since Revis was paid the option last year it is already earned. He did receive a signing bonus on his last contract of $4,700,500. The allocation to 2012 of that money is $783,416. I believe that that money is subject to forfeit. Revis also was paid a $1 million roster bonus in March and will earn $1 million in a reporting bonus when he reports. If they are prorated over 5 years he only stands to lose $400,000 on those bonuses.
The forfeits come in stages. In stage 1, which occurs on the 6th day, Revis can forfeit 15% of that money, or $177,525 under the 5 year allocation. In stage 2 he loses 1%, $11,835, each day for the next 10 days, a potential total of $118,350. Once camp ends that would leave his total at $295,875 in possible forfeitures.
Stage 3 begins with the start of the regular season. If he misses the first game he loses 25% of the remaining amount, which would translate to an additional loss of $221,906, bringing the grand total up to $517,781. Stage 4 does not begin until Revis misses the 4th game of the season. At that point he will be fined 1/17 of the allocation, $52,213 per week, for each game missed from week 5-17 until it reaches the total of $1,183,500.
Revis can also be fined $30,000 per day of training camp that he misses. Thatís a pretty hefty fine, and much larger than the $14,000 from the prior CBA. The CBA defines the preseason as the first day of camp, which is usually the last week of July, through the final roster reduction, usually right after the final preseason game. Six weeks could equal $1,260,000 in fines.
So all in all we are looking at a possible $2,443,500 in forfeiture and fines plus the loss of $4,500,000 in base salary if he misses the whole year. Revisí offseason would have paid him $3,000,000, so if he held out the whole season and paid all the money back to the Jets he would still have pocketed about $550,000 while holding out.
How will it be accounted for on the salary cap?
With the exception of the fine money, which I do not believe counts towards the cap since its not contract related, all forfeited money should all end up being credited to the Jets the following season. Revisí base salary will likely count towards this years cap, depending on what the Jets would do with his roster status, with credits received for each game missed. Essentially all the money would carry over to 2013 for the Jets.
What happens to Revisí contract is he sits out a whole year?
It plays out the same way except the voids will disappear from his contract. He will be set to earn $3 million in offseason compensation (roster, workout, and reporting bonuses) in 2013 plus $3 million in regular season pay. None of it will be guaranteed. He would now be contractually obligated to play for the Jets from 2014-2016 at just $3 million a season in total pay. Obviously the same scenario would play out with Revis going through the motions to pocket a few dollars before holding out again.
What does this mean for the Jets ?
Well if this holdout talk is very real I think it affects the Jets thinking with the draft and free agency in the future. The Jets relationship with Revisí agents, Neil Schwartz and Jon Feinsod, is already on thin ice. They have represented Pete Kendall and Chris Baker, two relationships that did not end amicably, and also Robert Turner who the Jets did not even attempt to bring back this offseason. They represent 15 current NFL players and another 6 first year/draft prospects that have yet to sign a contract. Other holdout clients have included Vincent Jackson and Roddy White, so they do advise their high profile clients to chance giving up money. In Jacksonís case the Chargers did not budge and he basically lost a full year of salary, but the Jets and Falcons both gave in to the holdout demands. Iím not so sure the Jets will do the same this time around and the landscape has changed greatly in the CBA to limit the possibility of the holdout.
I'm sure, in Revis's mind, he is taking a pay cut, but that is only because his contract was front loaded. I am not aware of any cornerback who averages $16 million per season over four years, which is evidently what Revis is intimating he should get?
If Revis retains his form (does not lose a step), I guess there could be some merit to a desire to negotiate for bigger bucks. To have the #1 rated cornerback on your team, SHOULD cost the team bucks, but I would personally angle for a performance-based contract. That is to say, "You continue to play like the #1 cornerback, then you will be paid the big bucks. If, however, you have to sit out games, or otherwise provide a sub par performance (and the older he gets, the more likely it is that will happen), then you get the smaller bucks. This is known as PUT YOUR MONEY WHERE YOUR MOUTH IS!
Without a doubt, it is nice to have a first class cornerback on the team, but when push comes to shove, if you had choice between a top shelf cornerback or a top shelf quarterback, which would you choose?
As good as Revis is, there has to be a point at which he is no longer worth the price; and I reckon he is close to that point now. We are talking about a cornerback here; not a quarterback.
You and I disagreed last year when I said that I expect Revis to hold out this summer and to not be intimidated by the hold-out clause in his contract.
It is my belief that Revis does not believe that the Jets Management will make him sit out a year if he holds out. He intends having them tear up his contract or he will sit indefinitely.
In addition I believe that Revis is quite ready to sit the season out like Vincent Jackson did. He knows the Jets will trade him next off season at the very worst - they will never make him honor the hold-out penalties in his contract.
Given that Jason tells us that Revis's current contract makes him untradeable in 2012, he has the upper hand because Rex and Tannenbaum can't let their best player sit on the sidelines with both their jobs on the line. The front office knows that Revis makes a tangible difference in their win total line at the end of the year. Mike Tannenbaum is no A.J. Smith. The Jets Front Office do not have what it takes when it comes to dealing with a player who's contract demands change year to year.
I do think the Jets should not blink (make him sit for this season) but I believe they will and will cough up a few more million to get him on the field in 2012.
My guess: Spring of 2013 Revis signs a Calvin Johnson type deal.
I don't think any of us know that I Revis is not going to hold out this year. Unless they kick him more money my guess is he absolutely will hold out.
On Jetsinsider a 30K a day NFLPA fine was mentioned as a reason why Revis will not hold out. Personally I think 30K a day means nothing to Revis. He has banked what ... 35-45 million in his life already ?
The holdout protection clause is not worth the paper it is printed on. If he holds out the Jets will trade him next off-season. Revis will continue to be a distraction until they move him. Once the cap hit becomes manageable next Spring Revis is worth more to The Jets in a trade than sitting on his sofa in PA counting his money.
I'm inclined to agree with your thinking. As with all workplace negotiations, it seems difficult to find the happy medium. Before agents came into the picture, pro players of all sports were certainly at a disadvantage when it came to contract negotiations.
My heart has always gone out to running backs, in particular, because they have one of the shortest life expectancies in pro football. Prior to arthroscopic surgery, one play could end their career.
Even the NFL players who are in the league for 13 years are considered a rarity, and are over the hill, so I understand the "Get it while you can" thinking.
But, now these agents (whose pay is a percentage of what they garner for their respective clients) make demands that make me pause and reflect.
Revis reminds me of the Kirby vacuum cleaner when I was growing up. Even if the Kirby was the best vacuum cleaner you could possibly buy, you could never convince me that it was worth $1200 when my $50 Hoover did what I needed it to do.
Woody Johnson has already demonstrated that money is no object when it comes to building a Super Bowl team, but the salary cap forces the man with the bottomless purse to consider the value of each contract forged between his team and his players.
This is a TEAM sport, and to give the farm away for one player hurts the team in the long run (e.g. The Minnesota Vikings who gave the farm away for Herschel Walker, only for him to sit on the bench; or the Indianapolis Colts, for whom Peyton Manning WAS the offense).
I wholeheartedly agree with you, Gangrene. If Revis even THINKS about holding out this season, then sit him for the season and trade him off.
Personally, I put more value on a coach who knows how to TEACH his players how to be championship players; one who does not really need ready-made prima donnas ... Coaches like Bill Parcells and Bill Belichick. Get a coach like that, and the salary cap will never again be an issue.
Trade Revis to Tampa Bay to swap picks in rounds 1, 2, and 3. Maybe get TB to throw in some special teams players. TB is looking for a CB.
That would move the Jets up to the 5 slot where they would have a lot more options. For example, pick Richardson or Cox in the 1st, maybe Massie at ROT in the 2nd, & backfill the secondary & LBs in the 3rd.
- Puts Jets in the game for some real talent, as opposed to be ing on the cusp at the 16 slot
- Get him out of the conference & improve the cap
- Overall value returned to Jets is equivalent to low 2 / high 3