millbank Posted March 6, 2006 Share Posted March 6, 2006 The six-year veteran agreed to terms Sunday on a restructured contract that provides the team with salary cap relief, removes the Jets from considerable financial exposure, and essentially keeps him from being released. The agreement, which will significantly reduce Pennington's $15 million cap charge for 2006, has not yet been signed, but all principle issues have been resolved. Under the new agreement, Pennington, who was scheduled to pocket a $3 million roster bonus this month, and earn a $6 million base salary for 2006, will drop his total compensation from $9 million to $3 million. But the contract also provides Pennington the ability to earn back $6 million if he is healthy again and reaches certain predetermined performance levels. Espn Link to comment Share on other sites More sharing options...
sfladave Posted March 6, 2006 Share Posted March 6, 2006 The six-year veteran agreed to terms Sunday on a restructured contract that provides the team with salary cap relief, removes the Jets from considerable financial exposure, and essentially keeps him from being released. The agreement, which will significantly reduce Pennington's $15 million cap charge for 2006, has not yet been signed, but all principle issues have been resolved. Under the new agreement, Pennington, who was scheduled to pocket a $3 million roster bonus this month, and earn a $6 million base salary for 2006, will drop his total compensation from $9 million to $3 million. But the contract also provides Pennington the ability to earn back $6 million if he is healthy again and reaches certain predetermined performance levels. Espn 618622[/snapback] How do they do this and avoid that 30% rule? Link to comment Share on other sites More sharing options...
The Jokeman Posted March 6, 2006 Share Posted March 6, 2006 How do they do this and avoid that 30% rule? 618625[/snapback] In reading the terms it sounds like the Jets turned the base pay into incentives and/or bonuses. I believe the 30% rule only states that a player can only take a 30% reduction in base pay but has not rule in terms turning base into an incentive and/or bonus. Though with no CBA the Jets are only allowed to prorate said bonuses for only four seasons not seven. Link to comment Share on other sites More sharing options...
beerme1 Posted March 6, 2006 Share Posted March 6, 2006 This is great news for us! We will have company at the bottom Link to comment Share on other sites More sharing options...
Recommended Posts