Former sports agent Joel Corry spent a few minutes explaining some details of Percy Harvin’s contract that I had not previously understood. In the interest of keeping Seahawks fan informed, I will share what I learned, as well as some thoughts on the significance of it.
First, let’s get acquainted with the different types of guaranteed money in an NFL contract. I had always thought money was either guaranteed, or it wasn’t. Not true. There is fully guaranteed money, but there are also guarantees that can be restricted to injury, cap or skill. I found a decent explanation of the differences over at NYJetsCap.com:
Fully guaranteed money is the real deal. That means your money is protected from skill, injury, and cap terminations. For you to not earn that money you have to do something egregious to be cut and not paid. The most complete form is that with “no offset” meaning not only do you get paid from the team that cut you but any additional money you earn from another team that year is yours to keep. Most contain offset language meaning if the player has a $7 million dollar guarantee and signs with a new team for $2 million you are only on the hook for $5 million in cap and cash dollars.
Often times reported guarantees are not fully guaranteed. Normally they just contain protection for 1 of the 3 termination reasons. So if you are protected from injury but don’t get hurt that injury guarantee was worth nothing. You have a skill guarantee but the teams cap is awful you are out of luck. You will never see a roster or workout bonus guaranteed for all 3 terminations upon signing, due to rules in the CBA treating them as a prorated bonus. In my mind the skill guarantee is the best of the three to have because it’s the most subjective but that’s just my opinion on it.