Foles Opting Out

[jarntt]

Just because you choose not to execute something in a contract doesnt mean it isnt there. This is a fundemental part of a contract. It must be a 5 year contract for one or more sides to be able to utilize an option. That option IS in the contract. It cant be a 4 year contract because they dont have to negotiate the option to get a 5th.

I enter into contracts at work constantly. A lot of them are 3 year contracts with an option to renew at preset terms for an additional 3 years. The original contract is both legally and from an accounting perspective 100% absolutely a 3 year contract. It is not a 6 year contract because the original term stands on it's own even though the language for the extension may be included in the original contract because said language isn't inferred to happen when the contract is first executed and neither side is bound by the terms of the extension period in the original term. You also do not need to encumber any funds nor show the ability to do so for the extension period, because the expense isn't assumed until the extension is executed. Now admittedly the contracts being discussed in this thread are really not exactly the same.

 

[jarntt]

Ask yourself a question.

Is the 5th year option written into the contract?

I'm not sure why you keep asking me the same question. I can enter into an agreement for a piece of property that is structured as a lease with an option to buy at the end of the term. All of the details of the purchase can be written into the original contract but there is obviously no purchase nor any legal commitment to purchase unless that portion of the contract is acted upon. So when I sign the contract I'm not buying the property; I'm only leasing it for a set term. Something being written into a contract is not necessarily binding nor deemed likely to occur unless in some cases if it is a passive option that must be acted upon to end the contract, not to acted on the enter into an extension.

 

[Manster7588]

I'm not sure why you keep asking me the same question. I can enter into an agreement for a piece of property that is structured as a lease with an option to buy at the end of the term. All of the details of the purchase can be written into the original contract but there is obviously no purchase nor any legal commitment to purchase unless that portion of the contract is acted upon. So when I sign the contract I'm not buying the property; I'm only leasing it for a set term. Something being written into a contract is not necessarily binding nor deemed likely to occur unless in some cases if it is a passive option that must be acted upon to end the contract, not to acted on the enter into an extension.

Because it's a Yes or No question that should end this whole discussion.

 

[Manster7588]

AECOM has a 15 year contract to provide services with the USAF on the TTR.
It's written as 5 years with the remaining 10 years as options to be awarded annually after the 3rd year.
That contract is registered as a 15 year contract.

 

[SteelersPride]

Yes. I just don't see that as a 5 year contract as much as I see it a 4 year contract with an option for the 5th year. It's just a more fitting way to describe it to me.

Can the player opt out?

 

[PhoenixEagles1]

A team opting in is a legal action

a contract is a legal document and opting in to the 5th year is taking a legal action because it's not automatic. I understand the contract details. I just don't see it as a 5 year contract, I see it as a 4 year contract with an option for a 5th year. It's fine if you disagree.

Go get em Jarntt.

 

[jarntt]

AECOM has a 15 year contract to provide services with the USAF on the TTR.
It's written as 5 years with the remaining 10 years as options to be awarded annually after the 3rd year.
That contract is registered as a 15 year contract.

It all depends on the specific language included in the contract and to an extent if it is considered a renewal or extension. Without seeing the contract all I can say is that it may not actually legally be a 15 year contract, but certainly possible that it is. Every Company announces the contract as the longer period and the higher $ amount for obvious reasons. Sometimes Govt has different rules for entering into contracts of certain lengths and needs to go through additional steps to award contracts over 5 years so they structure them as 5 year contract with extensions to avoid that but the intention is to enter into those extensions and often times they do it well before the original terms even ends.

 

[PhoenixEagles1]

The reason it’s a 4 year contract is teams don’t know if they stay with the mandated 4 year contract or change it to a 5. Players sign and fulfill the 4 year contract.

 

[Manster7588]

It all depends on the specific language included in the contract and to an extent if it is considered a renewal or extension. Without seeing the contract all I can say is that it may not actually legally be a 15 year contract, but certainly possible that it is. Every Company announces the contract as the longer period and the higher $ amount for obvious reasons. Sometimes Govt has different rules for entering into contracts of certain lengths and needs to go through additional steps to award contracts over 5 years so they structure them as 5 year contract with extensions to avoid that but the intention is to enter into those extensions and often times they do it well before the original terms even ends.

It's not that complicated. It's a 15 year contract unless AECOM doesn't do thier job, but trust me the 15 years are in fact written into the language of the contract, just as the NFL 5th year option is in the CONTRACT.

 

[Manster7588]

The reason it’s a 4 year contract is teams don’t know if they stay with the mandated 4 year contract or change it to a 5. Players sign and fulfill the 4 year contract.

The team doesn't change the contract, if they did the player could sue AND WIN in labor court.

Contracts cannot be changed without full agreement from all parties.

 

[Manster7588]

Go get em Jarntt.

I see Jarntt is a good poster again.

 

[jarntt]

It's not that complicated. It's a 15 year contract unless AECOM doesn't do thier job, but trust me the 15 years are in fact written into the language of the contract, just as the NFL 5th year option is in the CONTRACT.

But, that doesn't necessarily matter. That's usually just to make it easier to enter into the additional period and to agree on terms up front. The specific language that addresses the term is what matters legally. Usually when it is an extension or renewal that period is not legally binding or considered a contract yet. I know it's a legal issue and not a common sense issue per se, but it mostly pertains to what your obligations are legally.

 

[dbldwn711]

It all depends on the specific language included in the contract and to an extent if it is considered a renewal or extension. Without seeing the contract all I can say is that it may not actually legally be a 15 year contract, but certainly possible that it is. Every Company announces the contract as the longer period and the higher $ amount for obvious reasons. Sometimes Govt has different rules for entering into contracts of certain lengths and needs to go through additional steps to award contracts over 5 years so they structure them as 5 year contract with extensions to avoid that but the intention is to enter into those extensions and often times they do it well before the original terms even ends.

@PickleRick has this right... it’s a 5 year contract with the last year (or 5th year) being at the clubs discretion or option. Why? Because to suggest it’s a 4 year contract suggests that the player does not have to perform in year 5.

Look at it this way. Let’s say you own a company and that company has the ability to provide services to only one customer. You sign a 4 year contract with the current customer having an option for a 5th year. In year 3 of the contract you are not sure if the current customer is going to pick up the option so you go and market your services to other companies. Another company says “great... I’ll sign up. When can you start?” You can’t say “I’ve signed a 4 year contract 3 years ago so I can start as soon as that contract ends.” That contract doesn’t “end” until either 1) the current customer says I won’t pick up the option or 2) at the end of year 5.

That’s a 5 year contract. You are agreeing to provide services for at least 4 years and possibly 5.

 

[dbldwn711]

But, that doesn't necessarily matter. That's usually just to make it easier to enter into the additional period and to agree on terms up front. The specific language that addresses the term is what matters legally. Usually when it is an extension or renewal that period is not legally binding or considered a contract yet. I know it's a legal issue and not a common sense issue per se, but it mostly pertains to what your obligations are legally.

Your obligations are to perform that 5th year unless you are released from those obligations. YOU’VE signed a 5 year contract. Arguably, the team has signed a 4 year contract with the choice (option) to make it a 5 year contract.

 

[dbldwn711]

The player has signed a 5 year contract and is legally obligated to perform for 5 years unless the team releases him from that obligation.

The team has signed a 4 year contract that gives them the option to extend it to 5 years but they are only obligated to the first 4. The 5th year is their choice.

Either way it’s a 5 year deal.

 

[Manster7588]

But, that doesn't necessarily matter. That's usually just to make it easier to enter into the additional period and to agree on terms up front. The specific language that addresses the term is what matters legally. Usually when it is an extension or renewal that period is not legally binding or considered a contract yet. I know it's a legal issue and not a common sense issue per se, but it mostly pertains to what your obligations are legally.

It doesn't matter why it's written into the contract or what it does, but facts are it's in the "Contract".

One may say the 5th year option isn't fair, but it's in the contract making it a 5 year contract.

 

[jerseyhawksfan79]

The entire life of the rookie contract is 5 yrs. First 4 yrs guaranteed with team option 5th yr pick up non-negotiable or voided out for the player to become a FA.

 

[Manster7588]

The 5th year option is basically a Transition Tag without Free Agency rights, written into the contract.

 

[jerseyhawksfan79]

The 5th year option is basically a Transition Tag without Free Agency rights, written into the contract.

It helps out both player and team.

 

[PhoenixEagles1]

The team doesn't change the contract, if they did the player could sue AND WIN in labor court.

Contracts cannot be changed without full agreement from all parties.

They extend it a year. What do they extend it from? A 4 year contract.