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Favre contract highlights cash problems in Minnesota

The Brett Favre contract technically is a two-year, $25 million deal.  Though it’s unlikely that he’ll receive any of the money that he’s due to earn in 2010, he actually will be receiving large chunks of the money he’ll earn over the next several months in both 2010 and 2011.

Per a league source, Favre’s $12 million base salary for the 2009 season will be paid out in three ways.  He’ll receive $4 million in the form of periodic paychecks during the upcoming season.  He’ll also receive lump sums of $4 million in March 2010 and another $4 million in 2011.

The move suggests that the Vikings are low on cash in 2009, and that they are already tapping into future years to pay for Favre’s services.

And it marks a dramatic departure from the games that teams used to play in order to spend maximum money in the current year, charging the cash to future years’ salary cap calculations. 

Simply put, teams previously were cash rich and cap poor.  Now, more and more teams are cap rich and cash poor.

The Vikings, for example, still have a little more than $6 million in 2009 cap space, even after counting the full amount of Favre’s 2009 salary against it.  But the cash to pay Favre isn’t there; otherwise, he’d have all of the money before the end of the regular season.

As a practical matter, it makes Favre’s deal worth less than $12 million, given the time value of money.  (Then again, with interest rates as low as they’ve ever been, the present value of Favre’s 2009 salary won’t be significantly lower.)

Regarding 2010, the Vikings already have committed $4 million of their player budget for services rendered in 2009.  If there’s no salary cap (and thus no salary floor) next season, that’s $4 million less the Vikings will spend on player costs.

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50 Responses to “Favre contract highlights cash problems in Minnesota”
  1. JSpicoli says: Aug 19, 2009 12:09 PM

    Prediction: There will be contraction in every major pro sporting league, NFL, MLB, NHL, NBA.

  2. Cleveland Sucks aka Philly Sewer Rat says: Aug 19, 2009 12:13 PM

    2.0 squared = Favre

  3. Silver&Black666 says: Aug 19, 2009 12:18 PM

    DUH!!
    Teams in smaller markets are having hard time with escalating salaries.
    Ya think?
    And in this rough economy I still say that ticket sales are what the league is after even at the expense of letting convicted felons play.
    The traveling Vikings and Eagles will help sell a lot of tickets. Now if we could just get Pac man Jones back in the league maybe we could tap into the stripper market and get a few more butts in the seats.

  4. CdnMike says: Aug 19, 2009 12:19 PM

    Yikes!! That’s a little scary. The owners better address this quickly. I don’t want to see NFL teams start to look like some NHL teams.

  5. MrHumble says: Aug 19, 2009 12:23 PM

    While you may be right on your assessment, I think you also need to look at Farve’s contract from another perspective and that would be his perspective. Perhaps that is how Farve and his financial advisors wanted it to be structured to best benefit him. I don’t think you are being responsible in your analysis by only looking at it from the Vikings point.

  6. Dewey Axewound says: Aug 19, 2009 12:23 PM

    I heard they also offered to pay him with all the free boat rides he wanted, a handful of scalped Super Bowl tickets, a lifetime supply of Star Caps & Wizzinators, access to Jared Allen’s late night taxi service, realtionship advice from McKinnie,
    free lessons on how to spit on, fight, and generally evade police, and Childo’s membership in the Hair Club for Transgender Men.

  7. Ambrose says: Aug 19, 2009 12:27 PM

    They are lucky that Brett’s pursuit of revenge allows him to be so accommodating. The Vikings want the public money required for a new stadium. They need a championship to get the sentiment on their side. They are going “all-in” with Favre, while they can, with the hope that he can take them to the promised land. If he fails, Childress fails. If Childress fails, the Vikings fail. If the Vikings fail, you can plan to watch them in San Antonio. Favre and his unchecked ego could be the end of the Vikings as we know them.

  8. bigcity608 says: Aug 19, 2009 12:29 PM

    Brett, you hack. GB/Wisconsin will not forgive you for this. We can’t wait for you to throw it to Al Harris and C-Dub. Thanks for the memories Brett, I will always remember all of those INTs you threw to end the Packs seasons. Bring a little of that magic to Vikes. You old scallywag.

  9. Krow says: Aug 19, 2009 12:30 PM

    Excellent. This way if he tanks then it will affect future years as well. Brilliant move by the Vikings front office.

  10. Eric Hipple says: Aug 19, 2009 12:33 PM

    Florio has his MBA now.

  11. madM100 says: Aug 19, 2009 12:34 PM

    Thats why we need a new stadium!!!!!! I will cough up tax dollars for it

  12. broncoman says: Aug 19, 2009 12:43 PM

    @bigcity608…wow, that jealousy is jumping off the screen. Admit it, you wish he was still playing for you guys and not that weirdo looking Aaron Rodgers. That guy is the scallywag. His eyes freak me out! Oh, and he sucks at QB as well as looking stupid!

  13. berghead says: Aug 19, 2009 12:48 PM

    the L.A. Vikings…can’t wait!

  14. Fan 007 says: Aug 19, 2009 12:49 PM

    Look, this could be a ploy by the owners to “appear” cash strapped as they enter negotiations with the Players regarding the new CBA. With D Smith telling anyone who will listen that the Owners need to open the books, what better way to appear to be struggling than to not use all of the cap space, and defer payments from High Profile players like Favre. The Vikes know they will sell all of their season tickets and single game tickets, making them tons of money off of their 12 million dollar investment.

  15. jusford says: Aug 19, 2009 12:52 PM

    @broncoman
    You should think before you type. Rodgers is a top 5 QB based on last years performance and at least a top 10. If not name your top 10.
    Minnesota fans, enjoy your hail-mary season.

  16. SidHartman says: Aug 19, 2009 12:53 PM

    Just proves what a toilet the Metrodome is, what a crappy lease the owners have and why they’re last in the league in revenue. I live in Mpls and get panic attacks from lack of space everytime I attend a game. I’m with madM100 – I’ll throw in a few bucks for a new stadium.

  17. kesc0701 says: Aug 19, 2009 12:57 PM

    This is the best team by far that Favre has ever played on (on paper). It will be interesting to see what the Vikings can do. I’m from Minnesota and we’re all backing this decision. We’re 0-4 in Super Bowls and a ring would have a huge impact on a new stadium.

  18. Slim says: Aug 19, 2009 12:57 PM

    Aaron Rodgers looks just like Ryan from The Office.

  19. RaiderRich says: Aug 19, 2009 1:02 PM

    What kind of grown man wants to wear purple and play in the Metrodome

  20. worldinmyeyes says: Aug 19, 2009 1:02 PM

    Ever since the NBC merger, it seems Florio is a shill for the “poor” owners. I’m not buying it one second. The owners are not getting screwed, and for you to continue to trumpet this is disingenious.

  21. gwinn1952 says: Aug 19, 2009 1:09 PM

    Rodgers may be a top 5 QB…not so sure about that. But most of his INT’s came late in game when they needed to score. So based on that….not top 5 in come backs. I for one think he is boring to watch and if didn’t have the talent at receiver like he has..that wouldn’t have won 6 games last year. There are no excuses for him. As for Brett and still being a huge packer fan…..good for him that he can continue to play. Why packer fans are so against him when TT and the packers didn’t want him anymore. Was he supposed to just ride off in the sunset when he still had the desire to play….no way amigo. A true packer fan will cheer him on no matter who he plays for……not like he was the first player to change teams. Man…… based on the packer fan attitude players like Haynesworth, Gonzales, Vick to name a few must really be getting hate mail as well…..or is it only served on Brett.

  22. Markcel says: Aug 19, 2009 1:17 PM

    Quote: “This is the best team by far that Favre has ever played on (on paper). ”
    Ummmm, the ’96 Packers are much better than this Minnesota team. I’ll give you Peterson and some of the O-line, but everywhere else, I’ll go with the ’96 Packers. Plus the that team had a great coaching staff, not so much for the Vikings.
    That being said I think the Vikings have a very good team this year, just not better than the ’96 Pack.

  23. MrHumble says: Aug 19, 2009 1:17 PM

    One thing that is consistent from one NFL season to the next……..identifying a Packer fan……their comments come right out of the bottom of a beer bottle! While they may be the most dedicated fans………they are also the most stupid!!!! They give new meaning to the term “rabid fan”!!!!

  24. Nard100 says: Aug 19, 2009 1:23 PM

    Now it all makes sense. You have Favre. A broken down qb who has no intention for going through OTA’s or camp, but wants to be the starter for the Vikes. So instead of just admitting that upfront, he give these monkey-shines about “I just don’t know..” and “I have to be sure…”, etc. When camp opens, he says definitively that he can’t do it anymore. Suddenly, now that camps half over, he pops up like a spring chicken and says, “I’m ready let’s go.”? Wow. Brad Childress has signed his death warrant as a coach. He has alienated his current qb’s (especially T-jack). When (not if), Favre breaks down, this is all coming down like a house of cards. Just ask the Jets.

  25. Twiz says: Aug 19, 2009 1:25 PM

    it never ceases to amaze me, 95+% of the people that are putting down favre are the ones that back teams that have absolutely no chance of making the playoffs let alone have a winning season, Green Bay included!

  26. empty13 says: Aug 19, 2009 1:25 PM

    rich, you dont like the gogol bordello?
    http://www.youtube.com/watch%3fv=p_81l4DXlwM
    ////////////////////////
    think of every city/area that has had issues supporting any league franchises the last decade or so. minnehaha. pittsburgh. tampa. houston. new orleans. st. louis. seattle. phoenix. buffalo. jax. san diego. los angeles. milwaukee. utah. frisco. oakland. memphis. sacramento. jersey. vancouver. edmonton. cleveland. texas. cincy. montreal. quebec. colorado.
    contraction could get nasty. but the remaining teams should be better overall.

  27. empty13 says: Aug 19, 2009 1:35 PM

    t-jack cant even start in the ufl or cfl. get real.
    and rodgers would have had more wins except for that D that gave up 24 points a game.

  28. thecleaner says: Aug 19, 2009 1:40 PM

    Dewey your a tool. Most of that stuff happened under the Tice regime and who cares if Chilly lacks hair.

  29. zygi milf says: Aug 19, 2009 1:47 PM

    MrHumble says:
    August 19, 2009 12:23 PM
    While you may be right on your assessment, I think you also need to look at Farve’s contract from another perspective and that would be his perspective. Perhaps that is how Farve and his financial advisors wanted it to be structured to best benefit him. I don’t think you are being responsible in your analysis by only looking at it from the Vikings point.
    *************
    Good point. At least there are a few people who post on the “speculation mill” who can look at both sides before drawing a conclusion.

  30. Kevin from Philly says: Aug 19, 2009 2:03 PM

    Raider Rich,
    What kind of grown man gets dressed up like an extra from “Beyond Thunderdome” to go to a football game?

  31. Biff Henderson says: Aug 19, 2009 2:08 PM

    Viks season opener is the start of the F-BOMB Countdown. Everytime Brett thows a pick, the F-BOMBS will start raining down in Domequeen town. Start saving your allowance for the swear jar kiddies.

  32. The Dox says: Aug 19, 2009 2:09 PM

    Slightly more interesting Favre post than usual, but isn’t this the crux of the revenue sharing system?
    Please explain.

  33. sevendollarbologna says: Aug 19, 2009 2:12 PM

    cool.

  34. broncoman says: Aug 19, 2009 2:22 PM

    Hey jusford…thanks for the advice (don’t remember asking for it) but I do think long and hard (that’s what she said) before I type. Newsflash for ya…IT WAS MY OPINION!!!
    I think the Pack is going to have the “hail mary” season dude.
    Oh, and the top 10 (no time for correct order but that doesn’t matter) they are all better than that slob Aaron Rodgers…
    1. Peyton
    2. Brady
    3. Cutler
    4. Eli
    5. Drew Brees
    6. McNabb
    7. Big Ben
    8. Kyle Orton, Chris Simms and Tom Brandstater
    9. Matt Ryan
    10. Joe fag-go
    shall I go on…okay,
    10 1/2. Philip Rivers (I hate this guy)
    11. Vince Young
    12. Jeff Garcia
    13. Mike ‘bow wow’ Vick
    14. all the other QB’s in the league plus some UFL guys…
    100. Aaron Rodgers.

  35. Dewey Axewound says: Aug 19, 2009 2:33 PM

    thecleaner says:
    August 19, 2009 1:40 PM
    Dewey your a tool. Most of that stuff happened under the Tice regime and who cares if Chilly lacks hair.
    _________________________________
    YOU’RE (contraction for “you are”) right, it did–
    but it’s still ALL part of (indicative of the general practices thereof) that unloveable clusterf*ck of an “organization” known as the Mini-scrota BiQueeens.
    At least they really turned the corner on the whole character/scandal problem by signing Harvin, right?
    *snicker*
    And at least with the Favre signing they’ve moved away from the high-profile distractions and drama that have plagued them in the past.
    *triple snicker*
    Who cares if Chilly lacks hair?
    The problem is–whatever vortex of nothingness his hair was swept away into is probably the same place where his imagination, offensive play-calling prowess, ability to develop QBs, and overall charm & personality are being kept hostage…
    Do you care if he has any of those?

  36. Dewey Axewound says: Aug 19, 2009 2:46 PM

    I can’t wait to see how many chillzillions of headlines get churned out this year that include the phrase:
    “Blah blah blah…PROBLEMS IN MINNESOTA”

  37. zeakman says: Aug 19, 2009 2:51 PM

    Dewey, you are an idiot, but that was a good one.

  38. mixman34 says: Aug 19, 2009 2:52 PM

    Shouldn’t there be a rule against raider fans posting on this site? Maybe when the Raiders are a respectable franchise we’ll actually value the opinion of someone stupid enough to call themselves a fan. Until then… no one cares, go away. Same with Dewey.

  39. Qoojo says: Aug 19, 2009 2:54 PM

    12 mil for a guy to blow the season in the playoffs with stupid INTs. Money well spent for the vikings.

  40. JoeSixPack says: Aug 19, 2009 3:01 PM

    The Vikes can’t fill seats – so hired Favre for $12 million.
    That helped them fill seats – they sold 2000 season tickets.
    Unfortunately that still leaves them about $10 million short.
    My recommendation is that they sell Rollaids at $5 a pack at the stadium concesssions. That will make up the difference, especially late in games after a few INTs, and late in the season after his annual meltdown.

  41. The Dox says: Aug 19, 2009 3:25 PM

    haha broncoman, i thought that was gonna be a legitimate retort at first.
    just some more snarky meaningless bickering between Vikings/Packer fans. Yahoo.
    one thing is for certain:
    one side or the other will be eating a shitload of crow at season’s end, courtesy of Lord Favre.

  42. zygi milf says: Aug 19, 2009 4:03 PM

    JoeSixPack says:
    August 19, 2009 3:01 PM
    The Vikes can’t fill seats – so hired Favre for $12 million.
    That helped them fill seats – they sold 2000 season tickets.
    Unfortunately that still leaves them about $10 million short.
    My recommendation is that they sell Rollaids at $5 a pack at the stadium concesssions. That will make up the difference, especially late in games after a few INTs, and late in the season after his annual meltdown.
    ************
    That was 2,000 SEASON tickets in 1/2 day, to the worst fans in the country (according to some of you Pack fans.)
    I don’t want Favre, but it is impressive what one signing can do.

  43. norseman69 says: Aug 19, 2009 4:32 PM

    Listen up and pay attention you Minnesota fans and Governor Plawenty, you get the Vikings a new stadium by next year or they are gone after the 2011 season…you can take that to the bank!
    As the 32th team in revenue sharing they will be forced to leave.
    Have you not learned from the Lakers, North Stars and now the Vikings?
    You will lose more revenue, taxes and jobs when the go to California!

  44. goober says: Aug 19, 2009 5:45 PM

    “Mini-scrota BiQueeens”
    That’s some good shit! LOL!!!

  45. madM100 says: Aug 19, 2009 6:24 PM

    At least we can all agree that dewey axewound has prolly never seen an axewound.

  46. Tomb says: Aug 19, 2009 7:24 PM

    “goober says:
    August 19, 2009 5:45 PM
    “Mini-scrota BiQueeens”
    That’s some good shit! LOL!!!”
    I don’t think an endorsement of humor by “goober” is a positive thing.

  47. goober says: Aug 19, 2009 9:54 PM

    Yeah, well I had sex with your wife.

  48. burchardta says: Aug 20, 2009 11:55 AM

    Zygi Wilf is a pretty wealthy man and has been willing to shell out a ton of money. Some may argue that he over-payed heavily on Berrian. Hutchinson and Allen both came with huge price tags as well… although their talent backs it.
    The stadium proposal (over $900 million) also included about $300m in Wilf money. It’s not as if the guy is poor.

  49. SixBurghDude says: Aug 20, 2009 12:02 PM

    madM100 says:
    “At least we can all agree that dewey axewound has prolly never seen an axewound.”
    P-R-O-B-A-B-L-Y not!
    but he DEFINITELY is an axewound!!!

  50. RagnartheViking says: Aug 20, 2009 1:54 PM

    Sure he has seen one, His QB for the Bears is one, remember?
    He positively wouldn’t know how to make one “dewey though.

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