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Current Impasse in Luck's Contract: Endorsement? - Printable Version

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Current Impasse in Luck's Contract: Endorsement? - FarmBoy - 06-22-2012

According to this report, Andrew Lucks uncle (agent) is not happy with language in the contract that may require Colt's management to approve of Luck's endorsements.

Quote:"One of the stumbling blocks in negotiations ... is the proposed inclusion of marketing language that Luck and his representatives, at least so far, regard as strident," Pasquarelli writes. "One source with knowledge of the talks even suggested that Luck would 'have to clear' marketing proposals with the club"

http://www.nfl.com/news/story/09000d5d82a0d576/article/andrew-luck-colts-clash-over-marketing-deals-report


Re: Current Impasse in Luck's Contract: Endorsement? - pincemob - 06-22-2012

If they give him the least bit of grief, I hope he forces a trade.  Luck left a lot of money on the table by going back to school for another year, and thus landing in the Colts' lap.  Now their creepy, twitter-happy owner is pushing for unusual contract terms?  If you are a Colt fan, you have to be irate at even the suggestion the team isn't giving him everything he wants...and then some.   

Welcome to the big leagues, Andrew - Redrum - 06-22-2012

You do not own yourself the way that most of us other shlubs own ourselves.  Sure the bank really owns my house and the medical system could own all my bank accounts with one major medical crisis,  but even if I decided to become a real pariah-- become a USC fan, ferinstance-- at least no one could stop me or make me become one.    You,  Andrew,  don't own yourself in the same way.  All in all,  a pretty sweet deal for a wage slave,  though.

Re: Current Impasse in Luck's Contract: Endorsement? - FarmBoy - 06-22-2012

Quote:Luck left a lot of money on the table by going back to school for another year

I don't think this is true. Cam Newton was subject to the same CBA terms that Luck is. Luck's contract is going to be very similar to the terms of Can's. Except for whatever handcuffs the Colts try to put on his ability to generate supplemental revenue streams.

If a player had "character issues", I can see a team wanting to put some restrictions on his endorsements. But this is Andrew-freakin'-Luck. I too would be pissed, if I were a Colts fan, and the team were jeopardizing the unsigned QB's progress by holding out on something like this for a guy like Andrew.

I suspect it will all come to naught, but it makes for nice dramatic diversion during these summer months.

Re: Current Impasse in Luck's Contract: Endorsement? - washingtonismoney - 06-23-2012

(06-22-2012, 09:33 PM)FarmBoy link Wrote:I don't think this is true. Cam Newton was subject to the same CBA terms that Luck is. Luck's contract is going to be very similar to the terms of Can's. Except for whatever handcuffs the Colts try to put on his ability to generate supplemental revenue streams..

Even if Luck would've gotten the same money in nominal terms, he nevertheless lost money because:
1) inflation (2012 dollars are worth ever so slightly less than 2011 dollars)
2) time value of money (i.e. Luck could've invested the money for a year, seen it grow, etc. Though with the way the market is behaving these days, that's minimal.)
3) opportunity cost: Luck forever cost himself a year of money-earning
4) And, of course, the fact that he'll have to wait an extra year for his second contract, which is where the real money gets made.



Re: Current Impasse in Luck's Contract: Endorsement? - 82lsju - 06-23-2012

so he should counter with

- fine you can approve them
- but for any that you do not approve you pay what the company was willing to pay for the endorsement

Re: Current Impasse in Luck's Contract: Endorsement? - Farm93 - 06-23-2012

The whole idea is silly, and yet I suspect the real concern for the Colts is quantity not quality or image.

A lot of athletes seem to become exhausted and distracted racing all over the country completing photo shoots and ads.  The Colts probably realize that Luck could be advertising all kinds of things, and that those endorsement efforts could easily exceed his rookie salary.  Since Indy is not an advertising hub, all of those deals could force Luck to bounce all over the country.  However, if the Colts have a say, they could demand the ad agency fly a team to Indy.

I don't think they really can get anything on this front.  Still I suspect the concern is not about Luck endorsing something improper, but that Luck will be below his best if there are too many deals to manage.

Re: Current Impasse in Luck's Contract: Endorsement? - FarmBoy - 06-25-2012

Quote:Even if Luck would've gotten the same money in nominal terms, he nevertheless lost money because:
1) inflation (2012 dollars are worth ever so slightly less than 2011 dollars)
2) time value of money (i.e. Luck could've invested the money for a year, seen it grow, etc. Though with the way the market is behaving these days, that's minimal.)
3) opportunity cost: Luck forever cost himself a year of money-earning
4) And, of course, the fact that he'll have to wait an extra year for his second contract, which is where the real mo

These are fair points,though to quibble, point 1 is included in point 2, and the contract will be slightly larger than Newton's, so the time value of the first contract is a wash. However, unless I were inside Luck's personal circle, I wouldn't put as much weight on the value of the second contract. I'm sure there will be one, but the magnitude is highly uncertain. And I'm sure the Colts could argue that by staying, Luck's joined to a team with a recent history of paying top dollar in the league, compared to Carolina, whose QB history is less glamorous. From their point, they'll argue that waiting a year and coming to Indy actually lengthened Luck's career and increased the expected value of future contracts. But given the high variability of top QB pick outcomes, you really don't know what the second contract will look like (or even if it will come.)

Regardless, it looks like Irsay is denying the reports (http://www.wishtv.com/dpp/sports/colts_and_nfl/irsay-disputes-luck-contract-rumor). I would love to know the back story on this negotiation. The most curious aspect, I find, is that Luck hired his uncle to be his agent. He's the only NFL player at the agency (Wasserman), and Luck's uncle was hired by the group just recently. It doesn't appear that Wilson has any experience as an agent:

Quote:spent the past four years as an executive for Major League Soccer and Soccer United Marketing. He also served in executive roles with the Arena Football League, Champ Car World Series and for 13 years with NFL International, including stops as managing director of NFL Mexico and general manager of the Scottish Claymores of NFL Europe.

Clearly, maximizing his football revenue streams is not Luck's number one priority, per the previous discussion, but I wonder if Wilson is fumbling these negotiations at all, as a first time agent. Perhaps the Colts saw an opportunity to push Luck on the contract language based on his uncle's relative inexperience. Perhaps Wilson has leaked this issue to the press. While a lot of people are pointing to Irsay mishandling things, if indeed there is a barrier to getting the contract signed, isn't it more likely it's the fault of the agent who's never managed the career of an NFL player, let alone the #1 pick and savior of the franchise?

Re: Current Impasse in Luck's Contract: Endorsement? - LuckE2Bhere - 06-25-2012

The explanation I heard on ESPN yesterday, from one of their "NFL insiders", implied that this has nothing to do with Luck, his endorsements, or Wilson.  Apparently, something like 85% of all picks have signed, but very few of the top 10 have done so, as the teams and the agents are fighting to establish a precedent with respect to some contract language that would allow teams to recover some portion of the each contract if the team decides to cut the player in the fourth year.  I can't imagine that the Colts are putting a particularly high probability weighting on that scenario for Andrew, but since the new CBA leaves very little to haggle about re: contact length and dollars, the focus has shifted to these types of issues, and the top agents (with whom Wilson has apparently become aligned here) don't want to concede this point... at least not yet.