Beckham camp’s focus on “new money” now makes it harder to puff up eventual deal

AP

The upside-down application of the “new money” analysis to the Odell Beckham Jr. negotiations could make for an awkward situation if/when Beckham finally gets a new deal.

Given the argument made by Josina Anderson of ESPN.com — an argument which carries the fairly obvious fingerprints of Beckham’s agent, Zeke Sandhu — based on the total value of the contract at signing, it becomes difficult if not impossible for Sandhu to sell a “new money” analysis of the eventual package. The entire “new money” fiction is premised on pretending that the remaining year(s) on the current contract don’t exist; by making the case now that Beckham’s contract should be valued based not on new money coming from new years but the dollars to be paid from the moment it is signed, it will disingenuous at best to pump up the new contract by ignoring what Beckham already was due to make in 2018.

In other words, whatever Beckham gets will (or at least should) be assessed based on the total value of the deal from signing, factoring in the reality that Beckham already is due to make $8.459 million. This necessarily will drive down the perceived value of the contract.

For example, Steelers receiver Antonio Brown is the highest-paid receiver based on a “new money” analysis, given that his 2017 extension has a new-money average of $17 million per year. As noted at the time the deal was signed, however, the contract also has a total value at signing of only $14.54 million per year, given that Brown had one year left on his contract at $4.71 million when he inked the four-year extension.

That’s why Anderson’s analysis has focused on Chiefs receiver Sammy Watkins and his $16 million per year deal. Watkins signed as a free agent, so there was no “new money” to be considered. He gets a straight $16 million per year from signing, and that’s more than any other receiver currently will make.

So Beckham wants, at a minimum, a deal worth more than $16 million per year at signing. If the Giants insist on a five-year extension, he’ll need more than $17.5 million per year in new money to get past $16 million per year at signing. And if Beckham still remains intent on getting $20 million per year, he’d need to average $22.3 million per year in “new money” on a five-year extension to get there.

Maybe the value in this apparent effort by Sandu to ignore “new money” before the deal is done will prompt reporters to begin to ignore “new money” after a contract is signed, since it really is a made-up way to make contracts seem worth more than they are. The chances of reporters actually applying such candor to the numbers, however, is roughly equivalent to the chances that they’ll explain that the bloated amounts of “guaranteed” cited in the original accounts of the value of the deal aren’t truly guaranteed.

7 responses to “Beckham camp’s focus on “new money” now makes it harder to puff up eventual deal

  1. corky2141 says:
    It’s almost as if you looked thru your comments section & made a whole article out of someone else’s thoughts on it, while still poopooing “New Money”??????
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    August 7, 2018 at 4:44 pm

    Extensions always need to be sold on the “new Money” because, even if the old contract is torn up, it is still an extension of what is left on it. If he played out his deal & became a FA, this contract would be all “new money” like Sammy Watkins’ deal. So in reality OBJ has 2 options, take an extension (with multiple years of security) and tout how great the “new money” is, or play the year to year game & become an unrestricted FA in 3 seasons, unprotected through those years.
    Guessing he takes extension, with highest new money, but ends up just above Watkins’ $16 mil in total AAV

  2. I don’t understand the “new” money aspect. Beckham wants his current contract ripped up and a new contract created with much higher salaries effected. When his current contract is no more, doesn’t the money evaporate as well?

    Perhaps the lack of understanding on my part explains the low balance in my bank accounts.

  3. New money..old money. Doesn’t matter. No WR is worth that much. Jerry Rice in his prime isn’t worth 20+ million a year. Trade em’ to the Browns.

  4. We can look forward to hearing him whine about his contract for the next three years should the Giants decide to franchise him. If he spent as much time working on not being a diva he’d be an incredible WR. As it is he’s just a drama queen.

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