Now that the draft is behind us I wanted to highlight a couple of things.
First Congrats to Eli and Max for getting drafted. Also congrats to Ant Harris for signing UFA with Minnesota.
Now to the more interesting stuff.
So we all know that Eli was getting a first/second round grade by the scouts and ended up getting drafted 79th overall (15th pick in the third round)
I saw lots of misinformation about the salaries and what it means to Eli from an economic perspective so I wanted to clear it all up.
The rookie base salary for 2015 draft pics is $2,280,000 over the 4 years.
435k year 1, 525k year 2, 615k year 3, 705k year 4. Only first round picks and some second round picks get their rookie contracts guaranteed so remember that when you are looking at this information.
Signing bonus makes up the difference in rookie salaries.
As the 79th pick Eli's signing bonus is going to be approximately $606,376. That brings his total contract value to $2,886,376.
If Eli had been the last pick in the first round (which was Brown from Texas) it would have been $4,652,002. If he had been the 15th pick in the second round his signing bonus would have been $2,906,376.
So by dropping to the middle of the third round it cost Eli between $2.3M and $4M over the life of his rookie contract. Or put another way between 575K and 1M per year. That is a significant difference.
Now I am not saying he made a bad decision or questioning the advice he got but the money is significantly different enough that he will have to stay healthy, get a good second contract and be very smart with his money to be financially secure for the rest of his life.
For those that might say what if he got hurt. I am helping a college athlete and university place a injury/ disability policy right now. This player had a late first round grade and was contemplating coming out but wanted to be the first in his family to graduate college. If he gets hurt and slips into the 3th round or later or goes undrafted due to the injury then he will receive a tax free check for $3M. The premium is financed until he signs he first professional contract. He could have signed a policy for $5M but the school did not want to finance that large a premium. This is similar to the Oregon cornerback that got hurt in December. He is getting a $5M check because he fell to the 7th round.
First Congrats to Eli and Max for getting drafted. Also congrats to Ant Harris for signing UFA with Minnesota.
Now to the more interesting stuff.
So we all know that Eli was getting a first/second round grade by the scouts and ended up getting drafted 79th overall (15th pick in the third round)
I saw lots of misinformation about the salaries and what it means to Eli from an economic perspective so I wanted to clear it all up.
The rookie base salary for 2015 draft pics is $2,280,000 over the 4 years.
435k year 1, 525k year 2, 615k year 3, 705k year 4. Only first round picks and some second round picks get their rookie contracts guaranteed so remember that when you are looking at this information.
Signing bonus makes up the difference in rookie salaries.
As the 79th pick Eli's signing bonus is going to be approximately $606,376. That brings his total contract value to $2,886,376.
If Eli had been the last pick in the first round (which was Brown from Texas) it would have been $4,652,002. If he had been the 15th pick in the second round his signing bonus would have been $2,906,376.
So by dropping to the middle of the third round it cost Eli between $2.3M and $4M over the life of his rookie contract. Or put another way between 575K and 1M per year. That is a significant difference.
Now I am not saying he made a bad decision or questioning the advice he got but the money is significantly different enough that he will have to stay healthy, get a good second contract and be very smart with his money to be financially secure for the rest of his life.
For those that might say what if he got hurt. I am helping a college athlete and university place a injury/ disability policy right now. This player had a late first round grade and was contemplating coming out but wanted to be the first in his family to graduate college. If he gets hurt and slips into the 3th round or later or goes undrafted due to the injury then he will receive a tax free check for $3M. The premium is financed until he signs he first professional contract. He could have signed a policy for $5M but the school did not want to finance that large a premium. This is similar to the Oregon cornerback that got hurt in December. He is getting a $5M check because he fell to the 7th round.
