It is currently Fri Apr 25, 2014 5:19 am

All times are UTC - 4 hours [ DST ]





Post new topic Reply to topic  [ 4 posts ] 
Author Message
 Post subject: NFLPA FIGHTING OVER RECOVERY OF MONEY
PostPosted: Fri Aug 31, 2007 11:16 am 
Offline
Veteran
Veteran
User avatar

Joined: Thu Mar 08, 2007 11:59 am
Posts: 209
Location: Philly
AS EXPECTED, UNION WILL FIGHT FOR VICK'S MONEY

Though there wasn't much that the National Football League Players Association would have, could have, or should have done on behalf of admitted dog fighter and illegal gambler Michael Vick when it came to the question of whether he should be suspended indefinitely pending federal sentencing, the NFLPA will be resisting the efforts of the Atlanta Falcons to recover from Vick $20 million in previously paid bonus money.

"We believe their case is not valid and we certainly will fight to protect Michael from any action taken by the Falcons," NFLPA general counsel Richard Berthelsen told Jason Cole of Yahoo! Sports. "The lion's share of the money he received was in roster bonuses and we believe to the extent the Ashley Lelie case dealt with performance-based bonuses, this subject is already covered in the collective bargaining agreement."

The union's position is not surprising, and many of the details that come off as new information in Cole's article have already been reported elsewhere. Moreover, no one should interpret the move as a sign that the NFLPA thinks that Vick's indefinite suspension is unwarranted. It's simply a question of contract application and interpretation relating to whether money Vick already has received can be recovered by the team after any type of default, whether arising from a holdout, a suspension, or a skateboarding accident.

The NFLPA's position will be that only a portion of the $7.5 million signing bonus that Vick received in December 2004 is subject to recovery, and that $29.5 million in roster bonuses that were converted to guaranteed payments are untouchable.

We've read the Lelie decision (and nearly stayed awake while doing so). In that case, the outcome turned on the question of whether the payment sought to be recovered was a "salary escalator" that was "already earned." For these purposes, a "salary escalator" does not mean the traditional "escalator" term in a contract that pushes a player's base salary in a future year to a higher level if, for example, he catches at least 80 passes in a given season. In the Lelie case, the term "salary escalator" was interpreted broadly to include any amount that drives up a player's total pay.

A signing bonus is not "already earned" because it is advance compensation for future services to be provided. Since an option bonus typically is utilized as a second signing bonus, the fact that an option bonus isn't regarded as compensation for future services but money that is "already earned" makes it pretty clear (to us, at least) that a roster bonus will get the same treatment, regardless of whether it was converted to a guaranteed payment at the team's option.

The practical reality here is that a roster bonus converted to a guaranteed payment operates no differently than an option bonus. Thus, if an option bonus is not subject to forfeiture, a roster bonus should be excluded as well.

So the Falcons will only be able to get the unearned portion of Vick's initial signing bonus. There's a question in our undeveloped minds as to whether the amount is $3.75 million or $5.75 million, since the strict language of Vick's contract could allow the team to get the higher number. Still, it's a far cry from $20 million -- and in the end the recovery realized by the Falcons won't do much to offset the $7.5 million in dead money that the team will carry this year for Vick and roughly $15 million that will be allocated against the team's salary cap in 2008 and (possibly) 2009.


Top
 Profile  
 
 Post subject:
PostPosted: Fri Aug 31, 2007 11:22 am 
Offline
2009 Mock Contest Winner
2009 Mock Contest Winner
User avatar

Joined: Fri Dec 31, 2004 6:16 am
Posts: 12231
Location: Aschaffenburg, Germany
rut roh..... :x

_________________


Show me a good loser, and I'll show you a loser.
Vince Lombardi

"None are so old as those who have outlived enthusiasm".
Henry David Thoreau

Fail to prepare and you prepare to fail.

"Luck is the residue of design." - Branch Rickey


Top
 Profile E-mail  
 
 Post subject:
PostPosted: Fri Aug 31, 2007 4:45 pm 
Offline
Starter
Starter
User avatar

Joined: Fri Aug 10, 2007 10:01 pm
Posts: 97
Location: Atlanta
Well we certainly can't blame the NFLPA Union for doing this...it's their job.

I heard some idiot on the radio call in and say that Vick should just give back the $20 million as a sign of good faith to the NFL and A.B. - - LOL.


Top
 Profile  
 
 Post subject:
PostPosted: Fri Aug 31, 2007 4:54 pm 
Offline
Purveyor of Truth & Justice
Purveyor of Truth & Justice
User avatar

Joined: Thu Dec 23, 2004 3:03 pm
Posts: 25580
Location: North Carolina
$20 million to a charity or to have your named slapped on a stadium or library is worth it.

But to "donate" $20 million to the NFL or the Falcons, when the NFL itself is roughly a $5 billion industry. It would be of better faith if the NFL paid Vick's kids way through school. I'm sure they'll be interested in his son 20 years from now if/when he can run a faster 40 than his dad.


Top
 Profile E-mail  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 4 posts ] 

All times are UTC - 4 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 2 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Jump to: