Williams, Kalil in payday limbo
'30 percent rule' restricts Panthers, other teams, from locking up group of rising stars with expiring contracts.
By Charles Chandler
[email protected]
Posted: Friday, Apr. 02, 2010
New rules tied to the NFL's ongoing labor dispute make it almost prohibitive for the Carolina Panthers to sign Pro Bowlers DeAngelo Williams and Ryan Kalil to long-term contract extensions this year.
Williams and Kalil are among a group of the league's best young players in a contract limbo, forced to wait on lucrative new deals because of the "30 percent rule," which sets restrictive guidelines for renegotiating existing contracts - and could ultimately cause the Panthers to lose Kalil without compensation.
Other players affected include some of the league's rising young stars, including receivers Steve Smith of the New York Giants and Sidney Rice of Minnesota; linebacker LaMarr Woodley and receiver Santonio Holmes of Pittsburgh; all-pro center Nick Mangold and linebacker David Harris of the New York Jets; Indianapolis running back Joseph Addai; and Baltimore nose tackle Haloti Ngata.
Like Williams and Kalil, each of those players are entering the final year of their contracts and either were selected in the mid-to-late first round of the 2006 draft or the 2007 second round.
The new rules, which were triggered when NFL labor unrest forced players and owners into a 2010 season played without a salary cap, also affect star players with multiple years left on their contracts whose performances have far exceeded what they were paid in their rookie deals. That group includes Tennessee running back Chris Johnson and Philadelphia receiver DeSean Jackson. Both players have made it known they believe they deserve a pay raise.
"Basically, your hands are tied," said agent Ben Dogra, whose firm, Creative Artists Agency, represents Kalil, Smith and Addai.
Dogra called the renegotiations for such players "almost impossible to do" because the 30 percent rule limits base salaries for top-performing players who weren't early first-round picks and requires their contracts to include much larger signing bonuses (up to 80 percent or more of a total deal) than most teams are comfortable with.
Based on the estimated market value of new five-year contracts for Williams and Kalil if they did deals this year ($9 million and $6 million per year average, respectively), the Panthers would have to use signing bonuses, which are considered guaranteed pay, to account for about $30 million (66 percent) of Williams' new contract and $25 million (84 percent) of Kalil's.
"Most clubs are afraid to guarantee (that much)," said Dogra.
Agent Brad Leshnock, who represents Mangold, the Jets' two-time Pro Bowl center, said the new rules are "a real obstacle," though he still hopes to convince New York officials that his client is worthy of a massive signing bonus.
Panthers general manager Marty Hurney and Williams' agent, Jimmy Sexton, declined comment.
More suitable conditions for renegotiations aren't expected until after NFL owners and the players' association reach a new collective bargaining agreement. For now, talks are stalled and owners are prepared to lock out players next March if necessary.
Williams, a running back, and Kalil, a center, are among the young core players the Panthers have said they're committed to keeping.
But the "30 percent rule" restricts the size and growth of base salaries - but not signing bonuses - in renegotiated contract extensions for them and players like them this year. The rule is particularly hard-hitting because their rookie contracts paid them relatively low base salaries, putting them at a negotiating disadvantage since a player's 2009 base salary and limited other earnings are the starting point for determining how much base pay they can earn in an extension.
For instance, Kalil's 2009 figure is $510,000, which allows for a 30 percent raise of $153,000, setting that as the fixed amount for his annual base pay raises throughout the new deal.
A market-rate, five-year, $30 million deal for Kalil beginning at a $663,000 base salary this season would top out at a $1.275 million base in 2014. His base pay would total $4.845million for the life of the deal, requiring the Panthers to give him a signing bonus of more than $25million to get to the market rate.
Williams' basis for determining his base pay is a 2009 figure of $1.61million, 30 percent of which is $483,000. His base salaries in a five-year, $45 million deal would total $15.295 million, leaving nearly $30 million to be paid via signing bonus.
Under normal circumstances before the uncapped year, the Panthers would've been able to negotiate contracts for Williams and Kalil more liberally, making more of the deal base salary and other kinds of non-guaranteed pay.
"There's no question in my mind, after Ryan just made his first Pro Bowl, that if the rules hadn't changed, he'd already have a brand new deal now," said Dogra.
The 30 percent rule does not apply to restricted free agents whose contracts have expired. That means the Panthers aren't hindered if they want to strike a market-value deal with outside linebacker Thomas Davis, another of their core players.
This week, Dogra negotiated a six-year, $48 million contract for Houston Texans' restricted free agent linebacker DeMeco Ryans. It included a $7 million base salary for next season - a total that exceeds what Kalil would make in base pay for five years and what would take Williams three years to reach.
Assuming Williams and Kalil stay unsigned this season, their status for next year is a mystery - dependent upon terms of a new collective bargaining agreement.
Before rules changes related to the uncapped year, four-year players with expiring contracts could become unrestricted free agents. The uncapped rules raised the requirement to reach that status to six seasons of experience.
Kalil is entering his fourth season, Williams his fifth.
If the old standard is re-established, Williams and Kalil each could be unrestricted free agents. The Panthers could try to strike a deal with both of them, or perhaps place their franchise tag on Williams.
If that happened and Kalil didn't sign a new contract, the Panthers could lose him without compensation, said Dogra.
Dogra said it's highly unlikely the Panthers would use a franchise or transition tag on Kalil because it would require them to pay him significantly more than the market value for centers. That's because offensive linemen are not separated by position when franchise tenders are calculated, meaning a center or guard who is franchised is paid the same as left tackles, who are generally the highest paid offensive linemen.
Thus, Dogra said there's a chance the "30 percent rule" could cause the Panthers to lose Kalil, something he doesn't think would've been a possibility without the uncapped season's new rules.
Kalil helps anchor the Panthers' widely respected offensive line, which opens holes for Williams and fellow running back Jonathan Stewart.
Williams, who made his first Pro Bowl last season, has rushed for 2,632 yards and 25 touchdowns the past two seasons.
Will: 273 carries + 22 catches = 295 touches JStew: 184 carries + 8 catches = 192 touchesSplit of touches: 60.5% / 39.5% in favor of DWillDWill's ypc was also a full yard higher, so there was no reason to give JStew a greater share of touches.If you split the season into games 1-5 vs. 6-16 (DWill started getting significantly greater share of carries in week 6), then the split of touches is:Weeks 1-5: 55%-45% in favor of DWillWeeks 6-16: 63%-37% in favor of DWillSo in 2008, once the coaching staff figured out what they had in DWill, he received nearly a 2-1 share of touches.2009 (games 1-11, 13): DWill: 210 carries + 28 catches = 238 touches JStew: 126 carries + 13 catches = 139 touchesSplit of touches: 63% / 37% in favor of DWillThere was no material difference in ypc for 2009 (5.2 for DWill vs 5.1 for JStew)So if you look at weeks 6-16 of 2008 and common games played in 2009, DWill received 63% of the total touches. While JStew was dominant when given the opportunity to perform the last few weeks of 2009 (69 carries for 440 yds, 3 TDs in the last 3 weeks), it would take a major shift in mindset for the coaching staff to suddenly give JStew a greater share of touches.
Relax ladies.
