Last Friday, Cardinals quarterback Carson Palmer signed a new contract. Two days later, he tore an ACL.
The move gives him significant security; if he can’t play through 2015 due to injury, he’ll still get $20.5 million he wouldn’t have previously received. Per a source with knowledge of the deal, here’s the full breakdown.
1. $6.5 million signing bonus.
2. $3.5 million roster bonus, earned on November 8.
3. $4.235 million in remaining fully-guaranteed base salary for 2014. (He already was due to earn $4.235 million for the balance of the season, and as a practical matter it already was guaranteed.)
4. $9.5 million 2015 roster bonus, due on the fifth day of the league year. The bonus is guaranteed for injury only at signing. As of the fifth day of the 2015 waiver period, the roster bonus becomes fully guaranteed.
5. $1 million 2015 base salary, guaranteed for injury only at signing. As of the fifth day of the 2015 waiver period, the base salary becomes fully guaranteed.
6. $6.5 million 2016 base salary. As of the fifth day of the 2016 waiver period, the base salary becomes fully guaranteed.
7. $6.5 million 2016 roster bonus, due on the fifth day of the league year. As of the fifth day of the 2016 waiver period, the roster bonus becomes fully guaranteed.
8. $8.15 million 2017 base salary. As of the fifth day of the 2016 waiver period, the base salary becomes fully guaranteed.
The cap numbers are $13 million in 2014, $14.5 million in 2015, $14.7 million in 2016, and $10.15 million in 2017.
The deal also includes a phony final season with a base salary of $16.5 million and a roster bonus of $8.15 million. The final year of the contract voids, however, if Palmer is on the roster on the fifth day of the 2018 waiver period. (So why do it? The extra year reduces the annual bonus proration. For the final year, a cap charge of $2 million is due to be absorbed.)
The structure the Cardinals to make a quick decision each year about Palmer. Less than a week after each Super bowl, his pay for the next year becomes fully guaranteed. (In contrast, Colin Kaepernick agreed to give the 49ers until April 1 each year to make the decision.)
With Palmer’s knee injury, it’s unclear how long the Cardinals will keep him. By February 6, they’ll be on the hook for his full 2015 compensation. Based on his rehab and performance in 2015, the team will decide whether to keep Palmer for 2016.