Tuesday, December 14, 2010

Jamaal Charles Contract Breakdown

Over the weekend, Kansas City Chiefs running back Jamaal Charles signed a five-year, $32.5 million contract that included a reported $13 million in guaranteed money.

As is always the case, reported contract figures will be argued, but the bottom line remains that a player who had out-performed his rookie contract has been rewarded by his club.

Through a league source, I've gotten a peek at Charles' brand new five-year extension, which has an actual APY of $5.4 million:

Charles received an $8 million roster bonus, which is treated as a signing bonus and prorated over the next six years since the contract was signed after the last pre-season game.

For 30% rule purposes, Charles has a $19.9475 million special teams LTBE incentive, which Charles won't actually earn, but will be prorated along with the roster bonus ($27.9475M, or $4.657M annually) over the next six seasons.

If Charles does not earn the $19.9475 million incentive, which he won't, he will earn base salaries of:

2011: $2.75M
2012: $3.25M ($2M guaranteed for injury only)
2013: $1.75M
2014: $2.25M
2015: $4.75M

Charles has $4.5 million in base salary escalators between 2011-15, as well as $250,000 workout bonuses in each year of the extension. Charles also has $1 million reporting bonuses in 2013-15, and in 2014, has a $1 million NLTBE incentive tied to cumulative individual performance and the presence of a Lombardi Trophy in Chiefs' headquarters.

In the all-important first three years of the extension, Charles will rake in $17.5 million, or $5.833 annually. While only $8 million is fully guaranteed--his roster bonus--Charles will, in all likelihood, receive the $6 million in base salary between 2011-12, $2m of which is guaranteed for injury.

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