Chad Pennington's return to the Jets is looking good.
The two sides, trying to hammer out a reworked contract that includes a significant pay cut, are progressing toward an agreement, a person familiar with the situation said yesterday.
After several days of mutual anxiety - as of Thursday morning, both camps felt it was too close to call - a feeling of optimism has emerged. There is still work to be done, but they're within striking distance, the person said.
The deadline is 6 p.m. tomorrow, the eve of the new league year. Under his current contract, Pennington is due to receive a $3 million roster bonus on the first day of the league year - and the Jets don't want to pay that much in bonus money to a quarterback coming off two shoulder surgeries in an eight-month span.
The original deadline was Thursday night, but the parties got a reprieve because the start of free agency was pushed back three days as the NFL and the players' union continued to negotiate an extension to the collective bargaining agreement.
Pennington, who signed an eight-year, $64 million contract only 17 months ago, is supposed to make $9 million this season - the roster bonus, plus $6 million in base pay. But he likely will wind up collecting only about one-third of his original compensation.
Currently, Pennington is counting $15 million on the cap, but that figure could be lowered below $10 million with the new deal.
Initially, the Jets wanted Pennington to forfeit $8 million in 2006 compensation, a staggering proposal that left some in the Pennington camp thinking the team had no real desire to keep him.
But that was two weeks ago, and the Jets have improved their offer to about $3 million in salary and bonuses. Pennington, claiming not to be insulted by the proposed cut, said Tuesday he wants to remain with the Jets.
"If two sides want a deal, there's usually a deal," said one person close to the talks.
Pennington's return doesn't mean he'll be handed the starting job. The Jets probably will acquire another starting-caliber veteran, and they may also select a quarterback with their first-round pick. They're high on Vanderbilt's Jay Cutler.
Asked about the prospect of the Jets investing a No. 1 pick on a player who would be his eventual replacement, Pennington said, "I'm not going to waste any time thinking about it. The most important thing for me now is to get healthy."
Pennington, rehabbing his shoulder at the IMG Academies in Bradenton, Fla., said he hopes to start throwing in about two weeks.
The uncertainty surrounding his health puts the Jets in a difficult spot. They will go into the free agency period not knowing their exact need at the position. Do they pursue a moderately priced, stop-gap player (perhaps the Bengals' Jon Kitna) or do they make a significant investment? They still have Brooks Bollinger on the roster.
The Jets already are under the $94.5 million salary cap, which could increase another $10 million with a new CBA. That would give them enough wiggle room to be aggressive in free agency. If they trade John Abraham, their franchise player, they'd recoup another $8.3 million in cap room.
