How Much Did McNabb REALLY Make? Details Here.
I think it’s safe to say that just about everyone was not just surprised, but shocked with the news yesterday that Donovan McNabb inked a 5 year, $78M contract with $40M reportedly guaranteed. After the benching and blatant disrespect by Mike Shanahan, most of us truly thought McNabb would be out of the Nation’s Capital at the end of the year.
Not only were were shocked that he signed an extension, but the amount was stunning. McNabb is closer to the end of his career than the beginning and he has struggled with injuries. So a 5 year extension with that kind of money seemed out of the question. As we all know, however, NFL contracts are never what they seem.
So what is the true value of the contract?
ESPN’s Adam Schefter has reported that the extension is worth $70M and $78.5M if he’s on the active roster for every game during the 5 years (unlikely). The maximum value would be worth $88.5M if he McNabb leads the team to a SuperBowl victory in each of the 5 years (even more unlikely).
The true guaranteed amount is actually only $3.5M as the Redskins essentially have an out-clause after the 2010 season. If they decide to bring him back for 2011, however, they owe him a $10M option bonus and $2.5M for his base salary in 2011.
If McNabb suffers a career-ending injury this season, however and never plays again, he would receive $25M of the contract.
The details of the contract by year are as follows:
2010: $3.5M signing bonus (additional $250,000 if active for eight games)
2011: $10M option bonus plus $2.5M salary, plus other incentives based on active games, workout and playoffs
2012: $12.75M Salary plus same above incentives
2013: $13M Salary plus same above incentives
2014: $13.75M Salary plus same above incentives
2015: $13.55M Salary plus same above incentives
As usual with NFL contracts, the Redskins have backloaded the contract to allow for financial and salary cap flexibility and to hedge their bet. If McNabb tanks, they just need to cut or trade him and they’re out from under most of the contract. They’re essentially paying him $3.75M this season to have the option to pay him a lot of money in the future. If it works out, they’ll owe him $10M next season and then they can play it by ear each year thereafter.
So while it’s a good opportunity for McNabb, it’s certainly not the $40M guaranteed money that was initially reported and that made everyone’s jaw drop. We’ll see how the relationship with Mike Shanahan progresses, but it’s my belief that Daniel Snyder wasn’t too pleased with his coach’s handling of McNabb and wanted to offer a long-term deal to lock him up and reinforce that he wants McNabb in Washington.