Saints Renegotiate Reggie Bush’s Rookie Deal

The New Orleans Saints quietly renegotiated Reggie Bush’s contract in early June. The team included a $4 million signing bonus as part of the new deal, which runs through 2011, and a $4.5 million roster bonus for the 2009 season.

Bush had four years remaining on his original deal with $10.25 million in salary and $10 million in prorated bonus money scheduled spread out through 2011. But he also had $20 million dollars of “Not Likely to Be Earned” bonuses at a rate of $5 million per year that didn’t count against the Saints’ cap unless he reached those incentives.

Under his new deal, which also runs through 2011, Bush will see practically all of that money as long as he plays out his contract.

While his salary stays the same in 2008, he’ll see a marginal increase in 2009 ($2.2 million to $2.6 million) before making a huge jump from $2.9 million to $8.0 million in 2010. And in 2011, he will receive $11.8 million in salary instead of the $3.575 million that was in his original contract. In addition to the $4 million signing bonus, which adds an extra million dollars to the Saints cap hit for each of the remaining four years, Bush will still have the opportunity to earn $1.5 million in NLTBE bonuses. And he can earn $800,000 more in 2011. But all other NLTBE bonuses have been eliminated.

Instead, the team has put up $1.5 million in “Likely to be Earned Bonus” money for both the 2009 and 2010 seasons, and another $700,000 in 2011. All of that money hits the cap immediately when the contract year begins since it’s assumed that the player will reach those goals.

But perhaps the most significant move by the team is the huge carrot they’ve dangled to encourage Bush to finally break out this year and become their featured back. The former USC Trojan is eligible for a whopping $4.5 million roster bonus prior to the start of the 2009 season, and then another $490,000 roster bonus prior to the start of the 2010 season.

So in the end, the team converted almost $18 million in NLTBE money into roughly $5 million in roster bonuses and approximately $13.7 million in salary. And they threw in a $4 million signing bonus to make it even more attractive. Other than the signing bonus, none of the rest of the money is guaranteed. But if Bush plays out the entire contract, he’ll average $8.2 million over the four years.

For the 2008 season, Bush’s salary cap hit goes up only $1 million dollars from $4.1 million to $5.1 million. But largely due to the huge roster bonus in 2009 plus the LTBE bonus money, his toll on the cap will jump roughly $7.4 million ($4.7 to $12.1) next year.

In 2010, the hit goes up by $8 million ($5.4 to $13.5) and, unless he has another new deal in place by then, his salary cap charge in 2011 will be almost $10 million higher than it was in his original contract ($6.1 to $16.0).

The team has given Bush all the incentive in the world to excel this season with the lure of a $4.5 million roster bonus awaiting early next year. They aren’t likely to cut him loose in 2009 even if he disappoints this season, simply because he would still hit them for $10.5 million in prorated bonus money. That’s too costly against the cap, even if they would spread it over two seasons by making him a June 1 cut.

But after that, all bets are off. The team has set themselves up to be able to release him before the 2010 season if he hasn’t realized his potential. With just $7 million in prorated bonus money remaining on the contract, the team could release him and not only cover the loss, but come out ahead by roughly $3 million since he’s scheduled to earn $8 million in salary, a $490,000 roster bonus and $1.5 million in LTBE bonus money that year.

You’ve got to admire the way the Saints worked out this deal. They’re showing great confidence in their developing star by committing more up-front dollars to him now and by giving him a huge incentive in the form of the roster bonus. But they also gave themselves an easy — and cap-efficient — way out of this deal prior to the 2010 season if the circumstances warrant that decision.

- Ed Thompson, Scout.com