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View Full Version : Tneds Take: Let's put to rest the nonsense that Tebow gets $11 million if he plays 55% of snaps



Tned
10-10-2011, 10:03 PM
I've discussed this in multiple threads, but since many people still are confused based on a forum post of misinformation that has been repeated far and wide, I feel I need to address this in its own post.

There was a post on Broncos Country that was well written and spread like wild fire on the Internet, and then made its way to the radio shows, and went from there.

As I said, it was well written and sounded like the poster had "inside knowledge," but the only problem was that it was highly inaccurate. The poster, a regular guy like me or you, read Mike Klis' article from last year that overviewed Tebow's contract, and he simply misread the article and then created an elaborate conspiracy about how the Broncos weren't playing Tebow because, if he got 55% of the snaps, his contract would double from $11 million to $22 million.

The problem was, as you will see, that the whole theory was based on a failure in reading comprehension.

Here is the WHOLE basis for the wildly incorrect rumors about Tebow getting an extra $11 million if he becomes the starter -- plays 55% of the snaps. I have bolded the part that the original author of this bogus theory ignored, intentionally or otherwise.


Mid-tier incentives (Contractually considered unlikely to earn)

Value of Tebow's contract doubles from $11.25 million (including one-time playing time bonus) to $22.5 million if he reaches multiple thresholds, including:


55 percent playing time in two of his first three seasons, 2010-12, or 70 percent playing time in 2013.

The Broncos make the playoffs, he reaches certain QB ranking thresholds, and receives unspecified honors.


http://www.denverpost.com/breakingnews/ci_15667056

I have had an exchange with Ted Sundquist over this and he stated that mid-tier incentives are almost never reached, unless the player far, far exceeds expectations. They are never simple playing time bonuses. They are very rarely paid.

Ted's comments are consistent with what is actually in the Klis article published shortly after Tebow was signed.

Again, it's important to understand that ALL of what you have read or heard on the radio about the $11 million is based on this Klis article.

Please read it and don't make the mistake like others have done of ONLY looking at the first bullet (55%), instead, the first key point is: "if he reaches multiple thresholds, including."

This says that Tebow must reach MULTIPLE thresholds, not just one. Not just 55% of snaps.

It says, "including" and then lists the 55% of snaps, but ALSO "the Broncos make the playoffs, he reaches certain QB ranking thresholds, and receives unspecified honors."

So, in order to get the $11 million Tebow must both meet the playing time requirement, but then also lead the Broncos to the playoffs, reach certain QB rankings and receive some player honors (presumably pro-bowl, but since it's plural, likely also things like league MVP, etc.).

Now, let's go back to the second phrase I bolded, "multiple thresholds, including." Lawyers on here will tell you that is a phrase that typically indicates there is a list of criteria that must be met, which includes, but is not limited to, the criteria listed.

There has been nothing published that says that Tebow gets $11 million for playing 55% of the snaps. What's worse, is that the people that started all of this nonsense fully admit that the Klis article was the basis for their post/theory, but that they "interpret" the Klis' article as saying that the 55% is the most important piece, so their theory focusing ONLY on it is sound --- this is the answer I got when I pointed out the problem with his post. :confused:

In other words, he/they have major reading comprehension problems.

Not that it was needed, but Klis has come out and said that the only bonus directly tied to playing time is the one time bonuses (listed in his article before this $11 million one tier).

One last point, these type of escalators are almost ALWAYS piece meal. What I mean by that is that the $11 million will not be an all or nothing, but instead a series of much smaller bonuses, and if Tebow achieved ALL of them, it would add up to $11 million over the life of his contract.

The way these mid-tier incentives are typically written is like this:
Playing time bonus - $500,000 bonus.
Make the playoffs - $150,000
Named to Probowl - $100,000
Named league MVP - $500,000
Reach the AFCCG - $150,000
Reach the Super Bowl - $250,000
Named Super Bowl MVP - $400,000

And so on. In other words, they are typically a whole series of bonuses, many of which are VERY unlikely to be achieved, others more likely.

Now, we don't know if Tebow's contract is an all or nothing, which would be very unusual for an NFL contract, or what the actual values are for reaching the various achievements.

Instead, all we do know is that there is ZERO factual basis to the claims that Tebow will get $11 million dollars for playing 55% of the snaps over the course of two years.

On the bright side, as forum posters ourselves, we should get a kick out of how one posters post, even with no basis in fact, can take off and be the talk of the internet and sports talk radio.

BroncoJoe
10-10-2011, 10:24 PM
T. Do you have a life? Oh wait - you live in a dry county.

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Tned
10-10-2011, 10:45 PM
T. Do you have a life? Oh wait - you live in a dry county.

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No and yes, you are right.

BroncoJoe
10-10-2011, 10:48 PM
What did you find out about the restructuring? If it is in that novel above, I apologize. I have ADD and didn't read it all.

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chazoe60
10-10-2011, 10:51 PM
So you're saying we shouldn't play Tebow?


You're probably right, we wouldn't want that bonus to kick in.

Tned
10-10-2011, 10:57 PM
What did you find out about the restructuring? If it is in that novel above, I apologize. I have ADD and didn't read it all.

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I didn't put it in there. Supposedly, although I have not seen it personally, the Broncos released a statement saying that Tebow's contract was not restructured and that the new CBA forbids restructuring a rookie contract until after the third year. I had previously done some research (further to your no life -- dry county) and found that clause in the new CBA.

http://www.broncosforums.com/downloads/CBA_Rookie_Restructure.jpg

Ravage!!!
10-10-2011, 11:04 PM
Finally we can put to rest the ridiculous conspiracy theory that the reason they aren't playing Tebow is because of some contract. That was getting old.

pnbronco
10-10-2011, 11:14 PM
Thanks Tned....finally something that makes sense. BTW I heard on the radio today that if they cut Tebow at the end of this season the Broncos do not have to pay him anything else. Since you seem to have more time than I do these days. Do you know if that's true?

Tell Ted I say Hi, the next time to talk to him. We use to talk all the time when he worked for the Broncos.......I don't do contract talk.......:laugh:

BTW I can't believe that one of the guys on the radio said they had checked this out and it was true...........:ahhhhh:

pnbronco
10-10-2011, 11:31 PM
Also one more rant. The writer from the Boulder Camera did a whole article on this junk and made it sound like he had done so much research. Not like I would trust anything from the Camera, but dang will any of these guys come out and say oops.......

Tned
10-10-2011, 11:33 PM
Thanks Tned....finally something that makes sense. BTW I heard on the radio today that if they cut Tebow at the end of this season the Broncos do not have to pay him anything else. Since you seem to have more time than I do these days. Do you know if that's true?

Tell Ted I say Hi, the next time to talk to him. We use to talk all the time when he worked for the Broncos.......I don't do contract talk.......:laugh:

BTW I can't believe that one of the guys on the radio said they had checked this out and it was true...........:ahhhhh:

As I understand it, Tebow's agent negotiated the contract so that Tebow would receive the majority of his 2011-2014 salary in the form of a bonus that he got in August. His agent negotiated this in his contract to get Tebow money up front in case of a work stoppage. However, since it was due on the 29th day of the 2011 league year, and the lockout occurred before the official start of the league year, Tebow didn't get the Bonus (accelerated salary) until after the lockout ended.

It is very likely that this conversion of guaranteed salary to signing bonus, which was negotiated in Tebow's original contract, is what some people have mistakenly called a renegotiation this season.

This salary advance was also described in Klis' article that I posted a link to in my original post.

As I read all of that, after the bonus he received this year, Tebow will be owed little if anything in guaranteed money after this season, except for bonuses he might achieve.

For instance, if Tebow plays 45% of the snaps this season, he will receive a one time bonus of $1.5 million, which was considered a "likely to be earned" bonus, and is part of the $11 million contract everyone quotes.

Tned
10-10-2011, 11:35 PM
Also one more rant. The writer from the Boulder Camera did a whole article on this junk and made it sound like he had done so much research. Not like I would trust anything from the Camera, but dang will any of these guys come out and say oops.......

I need to take a look and see what he wrote. To date, most of what I have seen has pointed back to Klis' article, or in the case of a lot of the radio guys, the post on Broncos Country.

Tned
10-10-2011, 11:45 PM
Also one more rant. The writer from the Boulder Camera did a whole article on this junk and made it sound like he had done so much research. Not like I would trust anything from the Camera, but dang will any of these guys come out and say oops.......

I've been looking on the Camera's site, but haven't been able to find the piece talking about his contract.

pnbronco
10-11-2011, 06:05 AM
I've been looking on the Camera's site, but haven't been able to find the piece talking about his contract.

I just heard him talk with DMac and Alfred last week. I can't even remember his name but it came out the same time as the Klis article did, maybe Friday. He kept saying this is the only thing that makes sense of why they are not starting Tebow.

Anyway thanks again. This whole thing made me want to :banghead:

claymore
10-11-2011, 06:29 AM
This was the gheyest theory of them all. I couldnt believe anyone bought into this.

Tned
10-11-2011, 07:49 AM
I just heard him talk with DMac and Alfred last week. I can't even remember his name but it came out the same time as the Klis article did, maybe Friday. He kept saying this is the only thing that makes sense of why they are not starting Tebow.

Anyway thanks again. This whole thing made me want to :banghead:

I've been amazed at the so called "experts" and people that are supposed to give something close to unbiased observations.

The thing all of those guys missed was that the Broncos were not willing to give up on their season, and hopes of winning the division, just 1, 2, 3 or even 4 games into the season. While many fans and radio guys were convinced that the Broncos had a better chance at winning the Luck sweetstakes than winning the division, the Broncos coaching staff and front office were trying to put a team on the field to win the AFC West.

Going into the Chargers game, they had a chance to be one game out of the division lead with a winnable game against Miami after the bye.

jhildebrand
10-11-2011, 03:33 PM
Tebow just tweeted a pick of an $11 million dollar bonus check!

Cugel
10-11-2011, 05:12 PM
Once again, although NOBODY ever pays attention, HERE are the details of Tebow's contract. From Rotoworld where they list the details of EVERY player contract:


7/29/2010: Signed a five-year, $9.75 million contract. The deal includes $8.7 million guaranteed. Another $23.25 million is available through incentives, though $9 million of them are "unlikely to be earned." $1,537,500 of the incentives are available through a "likely to be earned" onetime escalator. 2011: $1,618,750 (+ $6.275 million guaranteed option bonus due 9/2), 2012: $1,942,500, 2013: $2,266,250, 2014: $2.59 million, 2015: Free Agent

This year's roster bonus is just a deferred signing bonus. The key figures are the $8.7 million guaranteed money + the $6.275M roster bonus = $15 million guaranteed.

Plus around $15 million in incentives that he could likely earn. Total = $30 million for five years = $6 million a year.

If he played out his contract as a starter that would be a great deal for the Broncos.

After his 3rd season they will re-negotiate his contract if they consider him the franchise QB at that point. And he'll be earning between $9 and $15 million a year (Matt Cassel got $15 million from KC for example, and he sucks).

So the conspiracy theory is worse than stupid. It doesn't touch reality at any point. :coffee:

Tned
10-11-2011, 05:33 PM
Once again, although NOBODY ever pays attention, HERE are the details of Tebow's contract. From Rotoworld where they list the details of EVERY player contract:


This year's roster bonus is just a deferred signing bonus. The key figures are the $8.7 million guaranteed money + the $6.275M roster bonus = $15 million guaranteed.

Plus around $15 million in incentives that he could likely earn. Total = $30 million for five years = $6 million a year.

If he played out his contract as a starter that would be a great deal for the Broncos.

After his 3rd season they will re-negotiate his contract if they consider him the franchise QB at that point. And he'll be earning between $9 and $15 million a year (Matt Cassel got $15 million from KC for example, and he sucks).

So the conspiracy theory is worse than stupid. It doesn't touch reality at any point. :coffee:

Actually, I'm pretty confident based on other things that have been reported that the rotoworld data is wrong. The mistake they made was showing both the $6 million bonus AND the future salaries, which was actually reduced once the bonus was given.

He's actually only around $9 million guaranteed with another $1.5 million in a likely to be earned bonus (he will get it this year if he starts the rest of this year).

Al Wilson 4 Mayor
10-11-2011, 05:53 PM
Ok, I'm sorry I thought it might be true. Everybody happy now? :D