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HUTCHINSON OFFER HAS MAJOR POISON PILL
A league source tells us that the offer sheet signed by Seahawks guard Steve Hutchinson with the Minnesota Vikings contains a poison pill of unprecedented magnitude and significance, which is aimed at preventing Seattle from exercising its right to match the deal, pursuant to the rules applicable to transition players.
Apart from a 2006 cap number that exceeds $13 million, the offer sheet contains a provision that makes the entire deal guaranteed if Hutchinson at any point becomes anything other than the highest paid player on the team.
From Seattle's perspective, that's a big problem, in light of the Walter Jones contract. If the Seahawks match, Hutchinson's deal could indeed become fully guaranteed from day one.
The Seahawks could attempt to match the offer and exclude the poison pill provision, taking the position that it is not a "Principal Term" of the deal. Under Article XX, Section 5 of the CBA, only the "Principal Terms" must be matched.
So what are "Principle Terms"? Under Article XIX, Section 3(e)(ii) of the CBA, "Principle Terms" include "[a]ny modifications of and additions to the terms contained in the NFL Player Contract . . . that relate to non-compensation terms (including guarantees, no-cut, and no-trade provisions)." Applying the language literally, the poison pill "relates to" a guarantee because it sets forth a specific circumstance in which the specified compensation will become guaranteed.
There's a chance that the Seahawks will attempt to fashion an argument that the trigger for the guarantee violates the spirit of the CBA by placing an artificial limit on the money that can be paid to other players. But, in reality, it doesn't -- it merely provides the player who ultimately is not the highest paid player a guaranteed contract.
Though the issue ultimately might land before an arbitrator, we think that the Vikings will prevail on this one.
We're also told that the Seahawks are livid at Hutchinson and agent Tom Condon with this development. It's one thing, as they see it, for a guy to get the best offer he can on the open market. It's another thing to huddle with the new team in an effort to come up with an offer that the Seahawks can't or won't be able to match.
Seahawks must account for the full 2006 cap number in excess of $13 million under their current cap room, which at the launch of free agency was reported to be in the range of $17 million. Again, no. The 'Hawks already were carrying $6.39 million in 2006 cap space due to the transition tag that was applied to Hutchinson, so the "new" cap hit this year for the Seahawks will be the different between the 2006 cap number under the offer sheet and the amount of the one-year transition tender.
HUTCHINSON OFFER HAS MAJOR POISON PILL
A league source tells us that the offer sheet signed by Seahawks guard Steve Hutchinson with the Minnesota Vikings contains a poison pill of unprecedented magnitude and significance, which is aimed at preventing Seattle from exercising its right to match the deal, pursuant to the rules applicable to transition players.
Apart from a 2006 cap number that exceeds $13 million, the offer sheet contains a provision that makes the entire deal guaranteed if Hutchinson at any point becomes anything other than the highest paid player on the team.
From Seattle's perspective, that's a big problem, in light of the Walter Jones contract. If the Seahawks match, Hutchinson's deal could indeed become fully guaranteed from day one.
The Seahawks could attempt to match the offer and exclude the poison pill provision, taking the position that it is not a "Principal Term" of the deal. Under Article XX, Section 5 of the CBA, only the "Principal Terms" must be matched.
So what are "Principle Terms"? Under Article XIX, Section 3(e)(ii) of the CBA, "Principle Terms" include "[a]ny modifications of and additions to the terms contained in the NFL Player Contract . . . that relate to non-compensation terms (including guarantees, no-cut, and no-trade provisions)." Applying the language literally, the poison pill "relates to" a guarantee because it sets forth a specific circumstance in which the specified compensation will become guaranteed.
There's a chance that the Seahawks will attempt to fashion an argument that the trigger for the guarantee violates the spirit of the CBA by placing an artificial limit on the money that can be paid to other players. But, in reality, it doesn't -- it merely provides the player who ultimately is not the highest paid player a guaranteed contract.
Though the issue ultimately might land before an arbitrator, we think that the Vikings will prevail on this one.
We're also told that the Seahawks are livid at Hutchinson and agent Tom Condon with this development. It's one thing, as they see it, for a guy to get the best offer he can on the open market. It's another thing to huddle with the new team in an effort to come up with an offer that the Seahawks can't or won't be able to match.
Seahawks must account for the full 2006 cap number in excess of $13 million under their current cap room, which at the launch of free agency was reported to be in the range of $17 million. Again, no. The 'Hawks already were carrying $6.39 million in 2006 cap space due to the transition tag that was applied to Hutchinson, so the "new" cap hit this year for the Seahawks will be the different between the 2006 cap number under the offer sheet and the amount of the one-year transition tender.
