Agent’s Take: Deshaun Watson’s potential suspension carries various financial consequences
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A key step in resolving Browns quarterback Deshaun Watson’s 2022 season playing status is taking place. A disciplinary hearing to determine if Watson is violated the NFL’s policy of personal conduct the behavior began on Tuesday.
Watson has faced 24 civil lawsuits for alleged sexual misconduct during massage sessions held while he was with the Houston Texans. Twenty out of 24 cases were settled last week. Two grand juries in Texas have refused to file a criminal complaint against Watson, who denied any crime, earlier this year.
Retired U.S. District Court Judge Sue L. Robinson, who was jointly appointed by the NFL and NFLPA, is leading the hearing. The procedure is expected to take several days.
Procedurally, the NFL was required to notify Robinson, Watson, and the NFLPA of its recommended discipline at least 10 days prior to the hearing, under the NFL Collective Agreement. There are several reports that the NFL is looking for indefinite suspension lasting at least one year. Talks between the NFL and NFLPA / Watson prior to the hearing did not lead to a settlement.
There is no set schedule for Robinson to make a decision. Ideally, a verdict will be handed down before the Browns open training camp on July 27th. A finding that there is no policy violation, which does not seem likely, would be the final solution to the case.
Both parties have three working days to appeal in the event of disciplinary action. Commissioner Roger Goodell or someone he appoints as his nominee would preside over the appeal, with the freedom to increase, decrease or confirm Robinson’s sentence.
Signing bonus revocation / cancellation of guarantees
Whether Watson gets a one-year suspension or is allowed to play football this season, the $ 44.965 million bonus in a fully guaranteed five-year, $ 230 million contract he signed in March as part of his trade with the Texans is not compromised because the way which contract is structured. Watson’s salary guarantees will not be revoked in either case.
This is due to the specific language in Watson’s contract. The relevant sign-up bonus language is as follows.
“… a suspension by the NFL solely in respect of items disclosed to the club in writing in accordance with paragraph 42, resulting in the inaccessibility of the club’s players only for games during the 2022 or 2023 NFL years will not subject the Player to a forfeiture of the bonus for signature. “
Without this language, the Browns would be entitled to ask Watson for an $ 8.993 million signing bonus attributed to the 2022 salary cap with a one-year suspension. That would be one-eighteenth of the $ 8.993 million signing bonus attributed to the 2022 pay limit for each week of the 18-week regular season that Watson missed with a shorter suspension. For example, a suspension of eight games would give the Browns a chance to recoup $ 3,996,889 (or an eighteenth of $ 8,993 million) from Watson.
Technically, Watson did not receive any signature bonus. Fifteen million is due on July 31. Another $ 15 million is due on January 31, and the final $ 14.965 million will be paid on March 31 next. Wage deferrals do not affect the exemption.
Suspensions are without salary, but that refers to the basic salary. Since Watson’s base salary for 2022 is $ 1.035 million, he will lose $ 57,500 (or one-eighteenth of $ 1.035 million) for each week he misses due to the suspension.
The appropriate language that protects Watson’s warranties from cancellation is below.
“… this shall not constitute a failure or refusal to train or play with the club and the player will not be left behind if: … (iii) the player is suspended solely in respect of matters disclosed to the Club in writing in accordance with paragraph 42, resulting in the unavailability of players for the club only for games during the 2022 or 2023 NFL years. “
The language is significant because it prevents Browns from potentially leaving the contract without major consequences for the restriction due to misconduct that was known before the trade. Probably any additional allegations regarding massage sessions while Watson was with the Texans would not qualify as a new offense.
In other words, the Browns can’t get out of the deal because of the accusations stemming from the massages. Practically speaking, the Browns would not have done so even if it had been possible after giving up the peaks in the first round of 2022, 2023 and 2024, the peak of the fourth round in 2022, the third round in 2023 and the fourth round in 2024 to win Watson and the sixth round round 2024.
These restrictions apply to the first two years of the contract. Should there be any discipline regarding these matters after 2023, the Browns will have the right to seek a refund for the signature from Watson and / or cancel the remaining guarantees in the contract.
Consequences of a one-year suspension
The biggest consequence of the one-year suspension is Watson’s contract, which currently runs until 2026. In essence, Watson’s contract would be frozen and resumed in 2023 with toll collection. This means that his contract year 2022 would become his contract year 2023, and additional contract years would also be moved back a year. Instead of Watson’s contract expiring after the 2026 season, he would terminate after the 2027 season.
Although the contract would have been postponed for a year, the proportion of the signing bonus of $ 8.993 million per year from 2022 to 2026 would remain intact. Watson’s salary limit for 2022 is 10.028 million dollars, and it consists of 8.993 million dollars, the proportion of the bonus on the salary and his basic salary of 1.035 million dollars. This basic salary would come out of the Cleveland books for 1.035 million dollars to reduce the limit for 2022.
Watson’s maximum number for 2023 would rise to $ 10.028 million with his base salary for 2022 moving to 2023 and his base salary of $ 46 million from 2023 shifted to 2024. Maximum numbers for 2024 to 2026 each would amount to $ 54,993 million, and the base would consist of a sign with $ 94 million8. bonus proration. The maximum number for 2027 would be 46 million dollars of the basic salary, which was originally for 2026.
Consequences of a shorter suspension
Another important consequence of the one-year suspension would be Watson’s expulsion from the training camp. That would not be the case with a suspension that would allow him to play football in 2022. Watson would be allowed to participate fully in training camp and play in the Browns ’preseason games. The suspension would not take effect until September 5, which is the day after the end of the pre-season training camps, as defined by the CBA.
Watson’s contract does not include a suspension where he will be able to play football in 2022. His contract will run as planned, which means that his contract will be terminated after the 2026 season. Watson would lose any basic salary not earned due to suspension. For example, a suspension of eight games would cost Watson $ 460,000 (or an eighteenth of $ 1,035 million) because he earns $ 57,500 each of the 18 weeks in the regular season.
Watson will be allowed to return to the team premises and participate in limited activities during the second half of the suspension. Permitted activities would be virtually the same as players suspended under the NFL’s substance abuse and performance improvement policies.
Most importantly, Watson could attend team meetings, practice individually with Browns strength and fitness coach, meet individually with Browns head coach Kevin Stefansky, offensive coordinator Alex Van Pelt and quarterback coach Drew Petzing, and receive treatment / rehabilitation from medical staff and Browns coaches after a fourth game suspension of eight games. Prohibited activities during the entire suspension include attending, observing or participating in training, attending home or away matches, attending or participating in group training.