Gruden’s contract is backloaded

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A 10-year, $100 million contract averages $10 million per year. Obviously, however, it doesn’t mean the employee will get $10 million every year.

As noted Friday, both here and in the PFT PM podcast, a decade-long deal provides plenty of space for creativity when it comes to crafting a perception that a coach is getting paid more than he is. And as it relates to the contract given by the Raiders to former and future coach Jon Gruden, the deal is backloaded, with less than $10 million per year being paid in the early years.

How much less? One league source said that my round-number example of $25 million over the first five years and $75 million over the final five years from PFT PM isn’t that far off the mark. More specifically, the source says the early years are much closer to $5 million annually than $10 million.

One big reason for that relates to state income tax. In California, where the Raiders will be at least for a year, the maximum rate is 13.3 percent. In Nevada, there is no state income tax.

The bigger question is whether and to what extent the deal is guaranteed. Surely, if Gruden has three or four non-playoff seasons and if the Raiders aren’t on the hook at Day One for anything after Year Four or Year Five, it would be a lot easier to act on any inclination to make another change.

39 responses to “Gruden’s contract is backloaded

  1. Makes so much sense to avoid that 13% state income tax. Huge amount of savings and for the Raiders a slight insurance if Gruden can’t bring the Raiders to glory.

  2. This guy has always struck me as a phony and a fraud… just a master of self-promotion. Go back and look at how bad his last seasons were in Tampa. What happened to the brilliant coaching then? Players hate him and he’s never had success working with a young quarterback. Many coaches would have won a Super Bowl in that Tampa situation he fell into.

  3. If the average is 10MM, and he makes 5MM at the start, doesnt that mean he’s making closer to 15MM at the end?

    Lets assume he does a decent job. After 5 years his contract will call for a raise to 10-15MM per year.
    Why pay that? If the going rate for a HC is 7MM in 5 years, why pay 15MM?
    Either renegotiate or fire him, assuming its not all guaranteed.

    The thing thats weird to me is the Raiders have a decent team. They have a QB and some good players, even if they had a down year. The Raiders are in a much better spot than say the Jets or Bears. Why would they have to overpay for someone out of coaching for 9 years?

  4. This is what’s wrong with this country! Teachers EMTs nurses, people who perform really valuable services make so little. Even our servicemen who protect our freedom don’t make near what they’re worth. And let’s not even get into the homeless people and are starving population. Yet we will doll out this kind of money for an NFL coach. Man if anyone wants to make America great again, start here!

  5. fin72 says:
    January 6, 2018 at 9:42 am
    This guy has always struck me as a phony and a fraud… just a master of self-promotion. Go back and look at how bad his last seasons were in Tampa. What happened to the brilliant coaching then? Players hate him and he’s never had success working with a young quarterback. Many coaches would have won a Super Bowl in that Tampa situation he fell into.
    ———————————-

    Gruden was 9-3 during his last season in Tampa before Kiffin announced he was leaving for Tennessee and demoralized his defense. The Bucs would finish 9-7 and miss the playoffs. By the mid-2000’s the Bucs had gotten old and needed to be re-tooled.

    You claim that many coaches would have won a Super Bowl with the “situation in Tampa” ironically enough, Hall of Fame Head Coach Tony Dungy couldn’t. 🤷🏼‍♂️

  6. Another brilliant move by the artist formerly known as California, where the state motto is “We’ll just raise taxes on the people who haven’t fled yet.”

  7. Only Son-of-Al wanted Lynch (a downgrade from Murray and a team cancer) last season. And Son-of-Al is the only owner who wanted Gruden (an average & rusty HC who is a downgrade from Del Rio) and grossly overpaid for the “privilege”. There’s a good reason for those decisions – both of these acquisitions were made strictly for publicity stunt purposes.

    Son-of-Al figures that he’ll bamboozle a large segment of the Raiders fan-base by these moves but he’s too much of a moron himself to realize that in the long-run high priced tickets (especially in Vegas) will be sold based largely on the actual quality of the product on the field. And his actions have messed up what looked like a very promising young team from one year ago.

    P.T. Barnum type owners generally wing up falling flat on their faces in pro sports.

  8. That’s the smart way to do a ten year deal. In five years from now the average coach will probably be making 10 million. But also, if Gruden wins a couple super bowls early, they’ll rip up the contract and pay him more.

  9. Maybe Gruden will coach five years and then get bumped up and run the franchise with Mark Davis.

  10. Adam Kachur says:
    January 6, 2018 at 10:58 am
    tony dungy gave them that super bowl roster. plain and simple folks.
    ===========
    This is true, Dungy built the roster. How many Super Bowls did Dungy win in Tampa with that roster? Gruden still did what tony couldn’t do. So I don’t get why this gets brought up. Is it supposed to be a slam on Gruden that he won with a team that failed to win with the previous coach? If anything it says he’s better than Dungy, right?

  11. Gruden never had a chance to restock the roster with quality young talent. The Bucs traded away 2 first round picks and 2 second round picks to get him, right after trading 2 first round picks for Keyshawn Johnson. He did the best he could with mid-round draft picks and free agency.

  12. If I were Gruden, I’d sign a contract paying minimum wage until the move to Vegas, with the stipulation that the Raiders would extend me a $5 million interest-free line of credit during the time I’m coaching in California, with a clause stating that my future income under the contract is the sole security for the line of credit.

  13. I’m so happy Chucky will be back on the sidelines. It’ll be fun watching his crazy personality get let loose again. Go Chucky Go!!

  14. EJ says:
    January 6, 2018 at 12:22 pm
    Gruden will get the Raiders back into the Playoffs on a regular basis.
    ———-
    Not with Derek Carr he won’t….

  15. Harry Canyon says:
    January 6, 2018 at 12:38 pm

    Adam Kachur says:
    January 6, 2018 at 10:58 am
    tony dungy gave them that super bowl roster. plain and simple folks.
    ===========
    This is true, Dungy built the roster. How many Super Bowls did Dungy win in Tampa with that roster? Gruden still did what tony couldn’t do. So I don’t get why this gets brought up. Is it supposed to be a slam on Gruden that he won with a team that failed to win with the previous coach? If anything it says he’s better than Dungy, right?
    ==============

    Actually, Dungy didnt even build that roster. Gruden retooled the offense when he arrived so the Bucs could actually score points on offense and those HOF D players were drafted by Sam Wyche before Dungy even took over. Still I never understood the logic behind “Gruden won with Dungys superbowl team” being that Dungy couldnt win with them. If you wanted to take it even further you could make a case that Peyton Mannings prime was wasted by Tony Dungy.

  16. And now, the Nayshun will need a moment of silence. Chucky’s first move will to be fire Toadman McKenzie, who is the best 36-61 GM in all time history. Such a sad day. Weep in silence my friends.

  17. fin72 says:
    January 6, 2018 at 9:42 am
    This guy has always struck me as a phony and a fraud… just a master of self-promotion. Go back and look at how bad his last seasons were in Tampa.

    ————————-

    He went 9-7 and was 7 points away from going to the playoffs with a 38 year old Jeff Garcia and Brian Griese as his starters. The team went 3-13 the year after he left. Not spectacular but not exactly 3-13 either like most people try to make it seem.

  18. Lots of money for a coach.
    He is an entertainer, not a coach. Look at the first round draft choices while he was head coach
    from 2002 to 2008.
    2002 and 2003 no first round pick
    2004 Michael Clayton two decent years
    2005 “Cadillac” Williams more like a go Kart
    2006 David Joseph Bust personified
    2007 Gaines Adam Who dat
    2008 Aquib Talib Blind hog finds an acorn

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