Blog - Internet Front-loadin': Full financial terms of Shea Weber's 14-year offer sheet

[Irishjim]

by

Travis Hughes

on

Jul 19, 2012 1:31 PM EDT

in

Philadelphia Flyers News

Various reports have confirmed the exact structure of the massive offer sheet the

Philadelphia Flyers have signed with defenseman Shea Weber. According to a number of reports, the most detailed from Sportsnet, here's a look at the entire deal:

<table border="1" style="margin: 8px auto; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; border-collapse: collapse; border-spacing: 1px; border-color: rgb(170, 170, 170); color: rgb(0, 0, 0); font-family: Arial, Helvetica, sans-serif; line-height: 17px; text-align: left; " width="100%"> <tbody style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> Year</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> Salary</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> Signing Bonus</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> Cap Hit</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2012-13</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $1,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $13,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2013-14</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $1,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $13,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2014-15</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $1,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $13,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2015-16</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $1,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $13,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2016-17</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $4,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $8,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2017-18</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $4,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $8,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2018-19</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $6,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> </td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2019-20</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $6,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> </td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2020-21</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $6,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> </td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2021-22</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $6,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> </td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2022-23</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $3,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> </td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2023-24</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $1,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> </td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2024-25</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $1,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> </td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> <tr style="margin: 0px; padding: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; "> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> 2025-26</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $1,000,000</td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> </td> <td style="margin: 0px; padding: 3px; outline: 0px; font-size: 11px; vertical-align: top; "> $7,857,142</td> </tr> </tbody></table>

And <a href="

http://www.broadstreethockey.com/2012/7/19/3169213/shea-weber-contract-offer-sheet-flyers-predators" style="margin: 0px; padding: 0px; border: 0px; outline: 0px; font-size: 13px; vertical-align: baseline; background-color: transparent; color: rgb(190, 61, 18); text-decoration: none; font-weight: bold; background-position: initial initial; background-repeat: initial initial; " target="_blank">that report from TSN last night that said Weber would get $26 million in a calendar year? Yep, it's possible. Under this structure, he'd get $13 million as soon as the deal is signed, $1 million over the course of next season and then $13 million again next July 1 as Year 2 of the deal goes into effect. Really, it's $27 million in less than one calendar year, and as we've mentioned, that's a whole lot of money to a team that's only worth $163 million in total.

The Flyers, meanwhile, have basically all the money in the world. No problem handing out $27 million to a guy in one season. Never doubt Ed Snider's crazy, insatiable desire to win, guys, even if sometimes that may lead us astray.

Maybe this is a bit of shady dealing by Paul Holmgren and the Flyers. Well, no. It is a bit of shady dealing. It's walking the line of salary cap circumvention, but in terms of what Weber will be worth in each year of the deal, it might be about right. You can make a sound argument that he's indeed worth $14 million over the next four years, just as you can argue he'll be worth $1 million per year as he's nearing 40. That's the argument against circumvention, and based on precedent it will likely work

[AndyS]

I will never understand people's disdain for Ed Snider.

All the guy wants to do is win. He puts his money into this team at every opportunity.

It sucks that we haven't won a Cup in so long, but it ain't like he hasn't made it his top priority.

[Spinorama]

front-laodin' and here I thought this was a thread about havin' sex with a girl the "normal way"

thanks for the post though, nice clean breakdown.

I am confused and hopefully someone can explain, what's with the low salary and REALLY high bonus'. I apologize in advance for not really knowing the way these contracts work, all I usually look for is "what's the cap hit?"

[Irishjim]

front-laodin' and here I thought this was a thread about havin' sex with a girl the "normal way"

thanks for the post though, nice clean breakdown.

I am confused and hopefully someone can explain, what's with the low salary and REALLY high bonus'. I apologize in advance for not really knowing the way these contracts work, all I usually look for is "what's the cap hit?"

i 'm sure but there might be a difference between actual payroll and cap hit. bounus get spread for the life of the contract which lower his yearly cap hit but he gets most of his money in the begining of the contract.. hence first 2 years he's paid 28mil but the books says his cost is 15.75. if that makes any sense

[Spinorama]

bounus get spread for the life of the contract which lower his yearly cap hit but he gets most of his money in the begining of the contract

but so does the salary in terms of cap hit right? So what I guess I don't get is why 1mil salary and $13mil signing bonus... why not just call it $14 mil salary for '12.

[The_Kaptan]

Essentially what the bonus does is allow him to collect the money in a lump sum at the beginning of the year. In this case he gets the money July 1st of next year- this means the preds would have to come up with 27 mil before July 1st next year, and any subsequent years. On top of this (as I understand it) signing bonus money is not counted in the salary rollback that is being discussed in the new CBA, so the team who gets him would still be on the hook for the full amount. I may be incorrect about that though, so don't quote me.

Edited July 19, 2012 by The_Kaptan

[Spinorama]

I see, if you're right that makes sense

[Phillygrump]

front-laodin' and here I thought this was a thread about havin' sex with a girl the "normal way"

thanks for the post though, nice clean breakdown.

I am confused and hopefully someone can explain, what's with the low salary and REALLY high bonus'. I apologize in advance for not really knowing the way these contracts work, all I usually look for is "what's the cap hit?"

I think its to ensure that Nashville is on the hook for 27 mil so they can't match and wait a year to trade him somewhere else.

[Phillygrump]

The bonus of 13 will be paid regardless of whether there is a season or not. Can a small market team front that without income?

[Irishjim]

but so does the salary in terms of cap hit right? So what I guess I don't get is why 1mil salary and $13mil signing bonus... why not just call it $14 mil salary for '12.

if you paid him 13 mil salary and 1 mil bonus his cap hit this year would be 14mil. by paying him one mil salary and the rest bonus. all bonus money spreads evenly accross the length of the contract and then lowering the yearly cap hit

[jammer2]

@The_Kaptan Welcome to the site!! Are you the same Kaptan from Philly.com?

[The_Kaptan]

Indeed. I usually lurk nowadays, but every now and then I have to stretch my fingers. And it's been hard to stay away today, much to the chagrin of my employer, I'm sure.

[jammer2]

@The_Kaptan Exciting day to be a Flyer fan my friend!!! Homer pulled off an awesome move here!!

[nmw215]

I just saw an interesting fact. I don't know if anyone else posted this yet, but for the first 12 months the Preds would have to pay Weber 27 million. The Predators' ticket revenue last year was around 26 million.

[jammer2]

@nmw215 Yep, and they are facing limited to no ticket revenue due to the potential strike. This 27 mill would have to come straight out of the owners pocket with little or no chance to re-coup it. Don't know many rich guys that stay rich making moves like that. Even if there was no strike and the season went on as planned, they would still only do the number of ticket sales as last year...when they lost money.

[AlaskaFlyerFan]

That $27 mil is a little misleading. Yes it is all within one calendar year, but the RFA/UFA is July to July. So technically, $14 mil this year and $14 mil next year. Nashville would only be have 11 Months in the first RFA/UFA year.

Edited July 20, 2012 by AlaskaFlyerFan

[DaGreatGazoo]

signing bonus money is not counted in the salary rollback that is being discussed in the new CBA,

Hey Kaptain..you make a great point! This money..from Weber's standpoint...is CBA-proof, for lack of a better word. +1 for Homer....

[doom88]

I just saw an interesting fact. I don't know if anyone else posted this yet, but for the first 12 months the Preds would have to pay Weber 27 million. The Predators' ticket revenue last year was around 26 million.

Ouch. That value seems really intentionally specific now.

[jammer2]

@DaGreatGazoo Does this well thought out offer make up for the fact they didn't know Pronger was a +35 contract?? LOL, I'm in a forgiving mood!!

[doom88]

@jammer2

It's really amazing to be honest. Homer can make the biggest blunders in cap management, then somehow, this offer sheet appears. Crazy.

[nmw215]

@nmw215 Yep, and they are facing limited to no ticket revenue due to the potential strike. This 27 mill would have to come straight out of the owners pocket with little or no chance to re-coup it. Don't know many rich guys that stay rich making moves like that. Even if there was no strike and the season went on as planned, they would still only do the number of ticket sales as last year...when they lost money.

And if they let him walk, as they let Suter, then their ticket revenue would absolutely plummet. So it's either give the man his money and then lose money, or stand pat...and then lose money. Homer put the Nashville owners and GM in one hell of a Catch-22.

[FlyersFan4Life]

i dont see the preds forking over that kinda of money they don't have the backing like snider does with unlimited pockets of Comcast a multi-billon dollar company

good article here

http://bleacherreport.com/articles/1264769-nhl-free-agency-2012-reasons-predators-wont-match-flyers-offer-for-shea-weber

Edited July 20, 2012 by FlyersFan4Life

[radoran]

That $27 mil is a little misleading. Yes it is all within one calendar year, but the RFA/UFA is July to July. So technically, $14 mil this year and $14 mil next year. Nashville would only be have 11 Months in the first RFA/UFA year.

The point about the $27M is that they need to come up with $13M immediately and another $13M next July 1 with the potential of zero revenue (or lower revenue) next season.

Comcast is sitting on a pile of cash that makes Scrooge McDuck green with envy. Nashville has a cabal of owners spread across the country...

[Howie58]

Greeting:

Putting aside whether this ls CBA compliant, I have to wonder if NHL Central can be happy with a deal that basically screws over a small market team that has produced a consistently good product for a devoted fan base? Trotz-Poile have done wonders on a budget shoestring. On that score, I am not happy with the deal. As a Flyers fan, I have to hand it to Homer for his ballsy move.

Best,

Howie

[JackStraw]

On that score, I am not happy with the deal

I agree with that Howie, but this is the reality if you're going to put NHL teams in non-hockey markets. If Bettman doesn't like it he has only himself to blame.