If Derek Carr Can Hold Out A Few More Hours, The Raiders Will Be Forced To Pay Him $40 Million
ByJoey Heldon February 13, 2023inArticles›Sports News
At the end of the 2021 season, things were looking good for the Las Vegas Raiders. Their quarterback Derek Carr led them to a win during the final game of the year, securing a spot in the playoffs. Though the Raiders ultimately fell in the AFC Wild Card round to the AFC champion Cincinnati Bengals, there were plenty of positives. The team seemed poised to take another step this year.
But then the 2022 season kicked off — and things quickly went awry. The Raiders lost their first three games by a combined 14 points and lost seven out of their first nine. The team finished 6-11, falling well short of the playoffs. They also had the notable distinction of being the first team in NFL history to lose five games where they had double-digit leads in the second half.
Before the team’s Week 17 game against the in-state rival San Francisco 49ers, the Raiders opted to bench their longtime starting quarterback Derek Carr in favor of Jarrett Stidham. The move seemed to come as somewhat of a surprise, and it signaled the end of Carr’s tenure in Las Vegas.
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The Raiders received interest from the New Orleans Saints in a potential trade. But Carr has a no-trade clause that he refuses to waive. That means the Raiders can either keep him on the team or waive him. The latter would send him to free agency, giving the Raiders nothing in return.
Yet that might be the only path for the Raiders to take. The relationship between Carr and the team appears to be severed beyond repair. And the clock is ticking for Las Vegas — if Carr is still on the team by Wednesday, he’ll earn $40.4 million in guaranteed money. If the Raiders cut him before then (a move they’re expected to make), they’ll at least save that money in salary cap costs.
By declining to waive his no-trade clause, Carr has essentially given himself his pick of teams. He could very well end up in New Orleans anyway, but on a much more favorable deal for him. He’ll be 32 by the time next season starts, which is still relatively young for a quarterback. He has four Pro Bowl appearances under his belt and would be an upgrade for several teams. That will likely command a deal in excess of $100 million over three or more seasons.
Still, how nice would it be to make an extra $40 million on top of whatever new deal he signs? Carr can hope the entire Raiders organization stubbornly holds onto him for a few more days.
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Players On The Oakland Raiders Should Think Very Carefully About Their Next Contracts
ByJoey Heldon July 27, 2017inArticles›Sports News
Last season, the Oakland Raiders made the playoffs for the first time since 2002. Less than two months after the Super Bowl, the Raiders announced a move to Las Vegas.
While the team will remain in Oakland this year (and possibly up to two years after that), every player on the roster that’s planning to sign a long-term deal would be wise to think about their next contract. Specifically, they should structure it so the majority of guaranteed money comes when the team is in Las Vegas.
Why? It’s a simple matter of state income tax. In California, players pay up to 13.3 percent of their income in state taxes alone. That’s the highest rate in the United States. There’s no state income tax at all in Nevada.
Quarterback Derek Carr has already put this plan into action. He signed a five-year, $125 million deal that’s more back-loaded than a typical NFL contract. It makes him the highest-paid player in the NFL by yearly salary, and more importantly, it lets him keep more of his money.
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The team also signed guard Gabe Jackson to a five-year, $56 million extension. While the specifics of that deal haven’t been disclosed, Jackson likely loaded up the back end of the contract, as well.
The Raiders have a few other key pieces to lock up, including Khalil Mack and Amari Cooper . Mack’s contract expires in 2018 and Cooper becomes a free agent in 2019. It makes sense for the Raiders to try to extend these players now, when they’ll be at a slightly discounted rate.
Mack is likely due somewhere in the neighborhood of $110-$120 million over six years – but that number could increase if he has another terrific season, or if another top defensive lineman gets a big deal in the meantime. The Raiders have the cap space available, so they’d be wise to ink Mack to a long-term deal.
Mack, meanwhile, should structure things so that he’s making the majority of his money in the final three years of his contract. Let’s keep things relatively simple and say he signs for $120 million with $70 million guaranteed. Assuming the Raiders stay in Oakland until 2019 and the money is distributed evenly over six years, Mack stands to lose between $4.6 and just under $8 million to state taxes.
However, if he structures the deal to pay him significantly more in years four through six of the contract, he’d save millions. Even just a gradual raise each year would help tremendously. Again, to keep things simple, let’s say he instead makes just $20 million in his first three years, with the remaining $50 million guaranteed spread out over the final three years. Not only would he lose $2 million less to taxes, he’d have $50 million of tax-free money once the team is in Las Vegas. Not too shabby.
While these numbers are hypothetical, the lesson is real. To maximize their earnings, players should guarantee as much as they can in the latter half of their contracts.
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