Patriots

How Cam Newton's 'up to' $7.5 million contract fits under Patriots salary cap

How Cam Newton's 'up to' $7.5 million contract fits under Patriots salary cap

How did the Patriots pull this off? How did a team that had no financial breathing room, no salary-cap space, go ahead and sign Cam Newton to a contract that's worth up to $7.5 million?

The key words there are "up to."

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Bill Belichick and Nick Caserio drew up a deal that would pay Newton the way other quarterback reclamation projects have been paid, if he performs. In the meantime, his salary-cap figure for 2020 comes in at just a smidgen higher than that of long-snapper Joe Cardona.

Let that sink in.

ALPHABET SOUP

Understanding how the Patriots were able to pull that off — pay Newton the going rate for a quarterback looking to revive his career, while simultaneously getting his salary on their books when they had next to no cap space — requires an understanding of the letters "NLTBE."

That acronym stands for "not likely to be earned," and it describes the majority of the incentives Newton received in his new deal with the Patriots. By NFL rule, NLTBE incentives do not count against the salary cap immediately. NLTBE incentive markers are markers that a player didn't achieve the season prior. If those markers are reached, then that incentive payment hits the following season's salary cap.

(As you might guess, LTBE incentive markers are markers a player did hit the season prior. LTBE incentives are counted against the cap upon the player's deal being signed.)

For example, if a player did not throw for 3,000 yards in 2019 but would be paid a $1 million bonus for reaching the 3,000-yard passing mark in 2020, that would be considered an incentive that is NLTBE. It would not count against the 2020 cap. If that 3,000-yard mark is reached in 2020, it would count toward the 2021 cap.

We can deduce then that the $5.75 million in available incentives included in Newton's deal did not count against the Patriots cap for 2020. They couldn't. The team didn't have enough cap space on hand to give him that kind of money in LTBE incentives. The Patriots had less than $1 million in space prior to agreeing to terms with Newton, per Patriots cap expert Miguel Benzan.

We don't yet know the specific markers Newton has to hit to earn his 2020 incentives, but because he played in only two games last season, the Patriots could have given him very reasonable numbers to reach and they still wouldn't count against the cap immediately because they'd be NLTBE. 

For instance, New England could've given Newton bonuses for playing in three games, passing for 600 yards and throwing one touchdown. Because he didn't hit any of those numbers in 2019 — he played in just two games and threw for 572 yards without any touchdowns — they'd all be considered NLTBE and not counted against the 2020 cap. In all likelihood, though, it's going to be a little more difficult than that for Newton to reach the incentives laid out for him.

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WARNING: MATH AHEAD

So if $5.75 million of Newton's "up to" $7.5 million contract with the Patriots won't count against the cap, what will?

Newton's veteran-minimum $1.05 million contract, for one, will count. That's the minimum under the new collective bargaining agreement for players with at least seven years of NFL service.

Additionally, two games of Newton's $700,000 in per-game roster bonuses will count against the cap. If he's provided $700,000 total in per-game roster bonuses, that means he'll be owed $43,750 for each of the 16 regular-season games he's on the Patriots roster. Two games of per-game roster bonus — $87,500 — counts against the 2020 cap because it's LTBE; he played in two games in 2019. The rest of those per-game roster bonuses are considered NLTBE but will count against the cap with each game he plays. So if he plays in all 16 games, by the end of the 2020 season, his cap number will be $1.75 million. Active roster bonuses are the only earned NLTBE incentives that hit a current year's cap, Benzan relayed. 

Therefore, Newton's cap number for New England in 2020 — his base salary plus two games of roster bonuses — comes to $1,137,500. That's slightly more than the $1.08 million cap number assigned to Cardona and the $1.05 million number assigned to fellow quarterback Brian Hoyer for this coming season. It's slightly less than fullback Dan Vitale's 2020 cap hit of $1,287,500. 

Now the question is, how did the Patriots fit Newton under their cap if they had less than $1 million in cap space left prior to landing him? His cap number is over $1 million, isn't it?

It is. But there's an accounting rule the NFL uses to include only the contracts of the players with the top-51 base salaries against a team's cap until active rosters are finalized.

Newton's cap number replaces what was the No. 51 salary on the 90-man roster prior to Newton's signing. According to Benzan, that No. 51 slot was assigned to outside linebacker Tashawn Bower. Because the difference in cap numbers between Newton and Bower is only a few hundred thousand dollars, the Patriots had enough space to add Newton once Bower fell below the No. 51 spot.

If the Patriots were snug up against the cap before, they're even more so now. By Benzan's estimates, they have $263,489 left in cap room. To handle regular in-season spending, they'll need to clear out more space eventually. Re-working Joe Thuney's contract to reduce his nearly $15 million cap hit, for instance, could free up some significant cap room quickly. 

MAXING OUT

If Newton makes the team, plays, and plays well, he may have a chance to reach the full $7.5 million value of the deal. But why $7.5 million? Why settle there?

Marcus Mariota is getting a $7.5 million base salary to be the No. 2 for the Raiders in 2020. Teddy Bridgewater made about that much in 2019 from the Saints. Both were passers in need of a fresh start. Both carried a certain level of uncertainty.

The same is true for Newton in New England, though his résumé is vastly more impressive than that of either of those other quarterbacks when they signed their contracts.

It's the definition of a low-risk, high-reward deal. It just required a little bit of creativity to get it in under the minimal amount of cap space the Patriots had available for 2020.

NFL Rumors: Patriots plan to sign TE Jordan Leggett, DT Darius Kilgo

NFL Rumors: Patriots plan to sign TE Jordan Leggett, DT Darius Kilgo

The New England Patriots have more open roster spots than any NFL team, but they're reportedly beginning to fill them.

The Patriots plan to sign tight end Jordan Leggett and defensive tackle Darius Kilgo assuming both free agents pass their COVID-19 tests and physicals, NFL Media's Ian Rapoport reported Monday.

New England hosted both players for visits last week, according to ESPN's Mike Reiss.

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Leggett began his NFL career with the New York Jets in 2017 but missed his entire rookie year due to a knee injury. He caught 14 passes for 114 yards and one touchdown during the 2018 campaign but hasn't played a regular-season snap since after spending the 2019 season on the Tampa Bay Buccaneers' practice squad.

Still, the 25-year-old would add depth to a thin tight end group in New England: Ryan Izzo joins rookies Devin Asiasi and Dalton Keene as the only tight ends on the roster after Matt LaCosse opted out of the 2020 season.

Kilgo has spent four NFL seasons on six different teams and spent part of the 2016 campaign in New England, earning a Super Bowl ring while finishing the season on the Patriots' practice squad.

The 28-year-old missed his 2019 season with the Detroit Lions due to injury and last played an NFL snap with the Tennessee Titans in 2018.

Patriots' Julian Edelman sounds eager to move on from Tom Brady questions

Patriots' Julian Edelman sounds eager to move on from Tom Brady questions

Julian Edelman and Tom Brady were inseperable for much of the past decade, so it's fair to wonder how the New England Patriots wide reciever feels about losing his longtime quarterback to the Tampa Bay Buccaneers.

It's also fair of Edelman to want to put the Brady era behind him.

The veteran wide receiver gamely fielded questions about Brady in a video conference Monday but seemed intent on spinning the narrative forward rather than harping on the QB's absence.

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"Obviously it's a little different (not having Brady around), but you've got to move on and understand this is a business," Edelman said. "You wish him well. That's when you instantly start thinking about what you have to do to prepare yourself to go out and contribute and help the team for the upcoming year.

"We've played a lot of ball together. I love him to death, but the train keeps moving, as it will when I'm not playing here or something. I mean, it always keeps going. So, we've got to worry about the people we have here."

Edelman and Brady won three Super Bowls together during their 11 seasons as teammates, and Brady was instrumental in Edelman's rise from converted college quarterback to Super Bowl MVP.

But reports have indicated the 34-year-old wide receiver is motivated to prove he's not just a product of his quarterback, and that motivation peeked through Monday.

"There's a lot of guys that are passionate for football," Edelman said. "Of course Tom has a passion that's a very big one. But he's moved on and he's somewhere else.

"We're worried about the passion of the players that are on this team right now, and I can tell you right now, there's a lot of guys that are very passionate and very hungry."

One of those players is new quarterback Cam Newton, who's expected to replace Brady as the Patriots' starter. Edelman and Newton linked up for workouts earlier this summer, so if he lamented the loss of his former QB, he didn't do so for long.