Though the contract signed by defensive tackle Albert Haynesworth with the Redskins on the first morning of free agency widely has been described as a $100 million contract, it accurately has been analyzed, for practical purposes, as a four-year, $48 million deal. (In year five, Haynesworth is due to earn $29 million in salary and bonuses — at a time when he will be 32 years old.)
Under that standard, Ravens defensive end/linebacker Terrell Suggs actually did a better deal.
Per a league source, here’s how Suggs’ payout over the first four years on his brand-new contract compares to Haynesworth’s.
In year one, Suggs gets $15.1 million and Haynesworth gets $11 million.
Through two years, Suggs gets $40 million and Haynesworth receives $35.6 million.
After three, Suggs will have pocketed $43.4 million, with Haynesworth only (only?) getting $41 million.
And after four seasons, Suggs will end up with $200,000 more than Haynesworth — $48.3 million versus $48.1 million.
Both deals are great. But the reality is that Suggs is every bit as good, and actually a little bit better, than Haynesworth’s.
This kind of makes me sick… Getting payed more than most CEO’s to play a game… ugh…
Haynesworth was looking more for the $100 million number than what it would actually end up paying out.
If you discount the annual salaries using the risk free rate plus a market risk premium, Suggs’ deal is far better than Haynesworths because he receives significantly more money early on in his contact, allowing Suggs to put his income in smart, income producing investments such as a dog fighting ring, a movie studio, a record label, a bank….
I’m sure the Ravens used Big Al’s contract as a base. Either way, Big Al will make a difference on our d-line. Hail!
You forgot a pretty important apostrophe in the last sentence.
i’m sure terrell is going to invest a good portion of this money with goldman sachs and get a great return on investment for the rest of his life.yeah, that’s what he’s going to do,not.
Are you going to write about what a dog Suggs is going to be now that he got paid like you continue to insist about Haynesworth?
Flo-Ri-Duh isn’t one for integrity.
That big Redskins Chip on his shoulder will never go away.
That’s why he was a whiny b_tch about Haynesworth’s contract, but talks about Suggs’s deal as “good”.
If Flo-Ri-Duh could practice some objectivity and pull his head out of his arse, he wouldn’t need NBC to give him a pre-tense of credibility.
However…until he get’s rid of that d-bag Aaron Wilson…all credibility is flushed down the toilet.
Damn….wish it wasn’t such a down economy so these players would not get short changed???
I really wish that the analysis on this site, or any football site, took the time value of money into account. I understand that some of the players don’t invest they the way they should but still.
The threat of injury makes the time value of money arguably more relevant here than in most financial situations.
You could pioneer this you know.