Maximum cost of Melvin Gordon’s holdout: $2.771 million

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Now that running back Melvin Gordon has returned to the Chargers after an extended holdout, it’s time to tabulate the maximum cost of the decision to skip training camp, the preseason, and three games of the regular season.

Obviously, Gordon has lost three game checks. At a base salary of $5.605 million payable in 17 weekly installments, Gordon lost three checks in the amount of $329,700. That’s $989,100 in lost regular-season revenue.

Gordon also incurred significant fines. Because he is operating under the fifth-year option applicable to first-round picks, the Chargers can fine him $30,000 per day of each missed day of training camp (for all other players, the daily fine is $40,000) and the full amount of a regular-season game check for each preseason game that he missed. With 13 days of training camp practices and four preseason games at $329,700 each, that’s a grand total of $1.708 million in potential fines — if the Chargers enforce the full amount of Gordon’s financial responsibility.

By holding out, Gordon also missed the daily per diem of $2,000 from the first day of training camp through one week prior to the first game of the regular season. Applying the provision in the CBA literally, that’s 37 total days from July 26 through September 1, that’s another $74,000 in lost revenue.

So the range for Gordon begins with a minimum of $1.063 million in lost revenue, if no fines are collected, and increases to a maximum of $2.771 million, if the Chargers exercise their right under the labor deal to collect every dollar of the available fines.

In the end, what did Gordon gain? He avoided the potential injury risk from training camp, the preseason, and three regular-season games. Only Gordon can decide whether it was worth it, especially if the Chargers decide to play hardball regarding the fines.

19 responses to “Maximum cost of Melvin Gordon’s holdout: $2.771 million

  1. It’s like us with careers losing $1,000. it sucks but we’re not losing our home over it. It was a gamble he was willing to take with money that he has to lose.

  2. And now let him get injured. That $2 million would have paid for a nice injury insurance policy. The idiotic nature of today’s cupcake athletes – short sighted and foolish.

  3. If I did it approximately correctly, if you made 50K it would be the equivalent of losing $8500.00 He lost 17% of his overall income. He lost 3 of 17 installments.

  4. If he were smart (and maybe he was), he should have had waiving the fines be part of him showing up now. He could have dragged this out another couple weeks, and it’s clear the Chargers could use him since his backups haven’t been starting caliber.

  5. Not worth it. If his value-to-be-gained was avoidance of risk of losing a future contract due to potential injury, he could have simply accounted for that risk with an insurance contract that would pay out in the case of serious injury. For $2.7M, he could get a substantial insurance policy for the season, heading his future while maintaining good relations with his team and teammates.

    Not to mention it is doubtful he would have spent $2.7M on an insurance policy.

  6. “By holding out, Gordon also missed the daily per diem of $2,000…”

    —————————————

    It’s hard to believe they get $2,000 per day as a per diem. That has to be a mistake.
    I mean if they make $74,000 before the season even started, players would never have to touch any of their regular paychecks.

  7. I wouldn’t be surprised to see more players do this on last year of rookie contract before free-agency to reduce odds of injury preventing big new contract, especially running backs with generally short careers anyways.

  8. mackcarrington says:
    September 27, 2019 at 12:47 pm
    “By holding out, Gordon also missed the daily per diem of $2,000…”
    —————————————
    It’s hard to believe they get $2,000 per day as a per diem. That has to be a mistake.
    I mean if they make $74,000 before the season even started, players would never have to touch any of their regular paychecks

    This is the big show not college.

  9. OK, I looked this up and while these numbers are 2 years old, I found the “per diem” listed at $1100/WEEK for rookies and $1900 a week for veterans, paid weekly. So, not literally a per diem but a weekly training camp allowance. I’m assuming if it was $1900 a week a couple years ago the $2000 quoted for 2019 is also weekly and not daily.

  10. @genericcommenter:
    Yes. The $2,000 is correct and the rate is weekly & not daily.
    Gordon only lost about $12,000.

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