The most recent CBA, which has now been in effect for years, requires NFL teams to place all guaranteed money into an escrow account. In other words, teams have to be able to afford, in cash, the guaranteed portion of all contracts when they are signed. It's an assurance that a player will - even if the markets collapse and all things go haywire, they will be paid the money that's guaranteed. There's no "I ain't got it" about the guaranteed money in a deal.
But here's the kicker. NFL owners don't get to earn interest on that money once it's placed into the escrow account. As anyone with a mortgage, car note, or lopsidedly-distributed savings account knows, building wealth is primarily structured around using money to make money. So lets return to the examples from before. Say Parsons and his representative David Mulugheta said, way back in Summer 2024, they weren't signing for less than $98 million guaranteed.
The Cowboys look around and see that Garrett and Watt are more than likely going to sign before Parsons if they don't do a deal now, pushing up the guaranteed money floor from $88 million. Say they even correctly predict that one of them (Watt) is going to set the world on fire and get $108 million guaranteed.
If the Cowboys leave that $98 million in their investment portfolio for 15 months, from June 2024 through September 2025, they make enough money to pay Parsons $108 million of guaranteed money in September 2025 and still have some profit.
www.nbcsports.com
Trade Dak for Garrett and Watson, trade terrible QB contracts, play Watson if he is able in 25, draft a QB in 26 because Watson will get injured badly again, cut him ASAP after the draft in 26.
