2014 New England Patriots Thread

I don't know I think you guys are blowing off the cash flow thing a little too much. The Pats operate differently than a lot of other teams which is why their cap situation is usually a lot better. They use a cash basis so even when their cap number is lower their cash number usually isn't. I do think this year was a little different though in that the cash number was low.

Millionairs/billionaires aren't just liquid as can be all the time which means that just because they could come up with the money it doesn't mean they would under the circumstances.

The Red Sox could spend like the Dodgers and Yankees too but they don't for good reason. The restructure most certainly does help them pay bonus money more easily.

They didn't do this so they could cut Tom Brady.

These teams all have revolving credit facilities with major banks at favorable terms. Liquidity is not an issue for organizations with half-billion annual revenues. They aren't doing this to save on interest payments, either, since they had to bump up his salary to compensate.

Every NFL franchise has access to a nine-figure revolving credit facility established by the league office, and most have similar arrangements with other lenders. Financial institutions are tripping over themselves to lend to NFL teams due to the NFL's steady revenue streams and virtually nonexistent risk of default. I very much doubt that liquidity is an issue.

The Patriots have not built/renovated their stadium or paid out significant up-front signing bonuses or made any other transactions that you would expect to exhaust a $200m league-established credit facility, plus whatever other private lending they engage in. Nor is there any reason to think that the franchise's revenues or Bob Kraft's other assets are in any financial distress. For an organization with as low of a credit risk as the Patriots, $24m for an escrow account is nothing, and any commercial bank in the world would agree to it in a heartbeat.

No one suggested finances were at risk. The theory that Brady wants to set himself up to be released is just a reach if there ever were one especially since that probability is near nil. They'd still trade him in your scenario.

First of all the yearly interest at 10% on 24m is 2.4 million. At 5% it's 1.2m so the 1m is less than any reasonable interest payment on 24m is. It's probably a couple of things. One Brady is under paid so to reward him for his play and him not being a jerk and holding out they offered him and extra million a year to free up their need to put 24m into an escrow account so they could re allocate those dollars to bonuses for other players to make a stronger team.

You're god damn right it's a unique situation and Brady is a unique individual. What other athlete in his position would take such a below market deal to help himself win? The funny thing is there are two other current athletes doing this. Dirk and Tim Duncan. These guys are an odd refreshing breed who are in unique situations where they are incredibly rich and just want to win. Brady isnt even his families bread winner.

Is the need overblown? Probably but it doesn't change that this makes it easier for the Patriots to do this and that Brady is unique for helping them out. It's not a conspiracy.

Oh and this restructuring takes away $3m in cap room, so if winning is the only goal this restructure is a big fail.

Anyway I guess it's pointless talking to you about this if you don't even understand what happened.

Wow you're not just an idiot you're a jerk too... It takes away a million a year in cap room yes, but the cap is easily manipulated in the NFL. Cash spending and the salary cap are completely different. In 2012 the Pats spent about a 168m in cash with a cap number of about 120. Considering they have some high profile signings with high bonuses to take care of they seem to be gearing up to do something similar this year. They paid Revis a lot more money than what his cap number was this year and similar things will probably happen this offseason.

It holds up a lot more than anything anyone else has suggested.

Do you have any evidence at all that suggests that the Patriots are now or have ever been concerned with cash flow? I've detailed why that hypothesis just makes no economic sense, and you've not written or linked to anything that goes beyond bare assertion. As someone who has reviewed the financial records of multiple NFL teams as part of my day job, I'm telling you, cash flow is not an issue for expenditures of this magnitude.

Jmei I've never disputed they financially don't need to but I know from years of following this team they put self imposed restraints on themselves for reason they deem to be business oriented. The fact is this gives them 24 more million to work with whether we reasonably think they need it to be available or not. It's still there vs not being there. I believe it's a lot more plausible they wanted this freed up than they or Brady wanted to make it easier to release him. But hey I've been wrong before.