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Stlrs4Life
03-26-2006, 11:05 AM
Can some one explain this stuff to me? I don't understand it, how does it work?

83-Steelers-43
03-26-2006, 11:19 AM
Can some one explain this stuff to me? I don't understand it, how does it work?

Many lawyers are familiar with a "poison pill" in corporate law, which are defensive measures intended to prevent hostile takeovers through stock acquisition. A poison pill is a section of a contract written by a team that makes the structure of a contract hard to handle in your cap if you decide to match an offer.

In the Seahawks/Vikings situation, Steve Hutchinson of the Seattle Seahawks, signed a 7-year $49 million dollar contract with the Minnesota Vikings. The Seahawks have the right to match the deal, and want to do so, but the Vikings have included a "poison pill" clause.

The clause stipulates that Hutchinson must be the highest paid offensive lineman on his team after the first year of the contract and that, if he isn't, the entire contract becomes guaranteed. The provision is a difficult one for the Seahawks, who have the right to match the Minnesota offer, because offensive tackle Walter Jones is the team's highest paid lineman and would be even if Hutchinson were on the Seattle roster.

BlackNGold203
03-26-2006, 12:56 PM
that being said..I have less of an issue with what the Vikings did...but the Seattle/Burleson thing had the stipulation that if Burleson played more than 5 games in the state of Minnesota..the entire contract would be guaranteed...this targets a team directly..where the hutchison clause targeted all teams in general

Suitanim
03-26-2006, 03:38 PM
Speaking of, me and my dad had an interesting argument over the weekend concerning lineman, particularly offensive lineman, vs. skill players concerning salaries.

He's an old lineman, and he states that it's impossible to overpay for a lineman, because he considers ALL offensive lineman underpaid to begin with.

The Shawn Alexander deal is a perfect example. Alexander is the second highest paid RB in the NFL behind LD, but he's only the third highest paid Seahawk behind Hasselback and Walter Jones.

Ambridge
03-26-2006, 04:03 PM
Have I missed something or have these crazy stipulations and clauses in these contracts (Hutchinson and Burleson) just started happening??

RoethlisBURGHer
03-26-2006, 04:35 PM
Have I missed something or have these crazy stipulations and clauses in these contracts (Hutchinson and Burleson) just started happening??

It seriously looks like they just started,because I don't remember them from years past.

The Burleson one was just payback for what the Vikes did with Hutch's deal.

Hawk Believer
03-26-2006, 05:15 PM
The NFL actually took up the case of the Seahawks against the Vikings regarding the Hutch contract. And lost. It will be interesting to see if they try to fight this Seahawk contract.

IMO, Paul Allen was pissed that he lost in a business transaction and he could be doing this Burleson contract more out of spite than anything else. I think he also wants to show where the Hutchinson arbitration ruling will lead and that maybe they need to ammend the CBA to get rid of this stuff.

I believe that a lack of guarenteed contracts is one of the reasons the NFL has such a consistantly good product. This trend is going to screw all that up.

boLT fan
03-26-2006, 05:36 PM
So basically... the Vikings and Seahawks could be destorying the NFL labor piece? Awesome.

Hawk Believer
03-26-2006, 08:09 PM
So basically... the Vikings and Seahawks could be destorying the NFL labor piece? Awesome.
Don't forget the agents and the players they represent. And most importantly, the "Special Master" who declared that these type of contracts are acceptable...

Stlrs4Life
03-26-2006, 10:17 PM
Thanks for the responses.

Hawk Believer
03-27-2006, 08:48 PM
So the Seahawks' creative little F.U. move with the Vikings could come back to haunt them this free agent season..... Text below is from www.Seahawkshuddle.com.

PATS TO PULL OUT A POISON PILL OF THEIR OWN?

We always read the e-mails that readers send to us. Not just because we are gluttons for abuse, but because sometimes our readers offer up some pretty good insights.

And then we can pass them off as our own.

Case in point. Now that the Seahawks have signed Vikings receiver Nate Burleson to a seven-year, $49 million contract that becomes fully guaranteed if he plays five or more games in Minnesota during any year of the deal, the Seahawks could end up losing kicker Josh Brown if a team signs him to an offer sheet that becomes fully guaranteed if Brown plays five or more games in the state of Washington. By adding several big-dollar phony years onto the end of the deal, there's no way the Seahawks would match.

So it's possible that the Seahawks have outsmarted themselves.

If a team with a pressing need at the position (such as the Patriots) is willing to give up a seventh-round draft pick, they can get Brown by turning the tables on the Seahawks.

Also available for such a maneuver is Seahawks quarterback Seneca Wallace, who would command a fourth-round pick as compensation.

boLT fan
03-27-2006, 08:50 PM
Looks like Seattle and Minnesota started a landslide...

Suitanim
03-27-2006, 09:19 PM
So the Seahawks' crative little F.U. move with the Vikings could come back to haunt them this free agent season..... Text below is from www.Seahawkshuddle.com. (http://www.Seahawkshuddle.com.)

The squaks still managed to pull off a HUGE coup by signing Alexander and at THEIR price. If the hype is real, Hutch leaving shouldn't hurt THAT bad.

(Of course, I don't believe the hype, and am fairly convinced it will be another 20 years before the squaks even sniff a hint of the SB, but that's just me)

Hawk Believer
03-27-2006, 09:45 PM
The squaks still managed to pull off a HUGE coup by signing Alexander and at THEIR price. If the hype is real, Hutch leaving shouldn't hurt THAT bad.

(Of course, I don't believe the hype, and am fairly convinced it will be another 20 years before the squaks even sniff a hint of the SB, but that's just me)
Well, the pressure is on to break the SuperBowl loser jinx. I of course, being a homer, believe they should be strong for at least the next couple years if this team stays intact. It should be interesting to see how this team (and fans) react to the change of expecting excellence instead of just hoping for it.
Hopefully we can whittle away the regular season in obscurity out here in our little corner of the nation and earn another home field advantage in tha playoffs. I guess that is all you can hope for in March.

DIESELMAN
03-28-2006, 12:26 AM
Mike Sando of the Tacoma News Tribune, reports NFL commissioner Paul Tagliabue said he plans to speak with NFLPA executive director Gene Upshaw about putting a stop to the poison-pill offer sheets signed by Minnesota Vikings OG Steve Hutchinson and WR Nate Burleson.

Livinginthe past
03-28-2006, 02:09 PM
Well, the pressure is on to break the SuperBowl loser jinx. I of course, being a homer, believe they should be strong for at least the next couple years if this team stays intact. It should be interesting to see how this team (and fans) react to the change of expecting excellence instead of just hoping for it.
Hopefully we can whittle away the regular season in obscurity out here in our little corner of the nation and earn another home field advantage in tha playoffs. I guess that is all you can hope for in March.

I think Seattle has handled the FA period pretty well, holding onto at least some of its most prized possessions.

I think after the disappointment of losing the SB has worn off, the Seahawks will be even more confident this year of returning as the NFC representatives.

Of course, it also means they have a big bullseye on their backs from weeks 1-17.

NM

Hawk Believer
03-29-2006, 08:17 PM
Seattle responded days later by signing Vikings receiver Nate Burleson to a long-term contract, invoking wild poison pill clauses that basically ensured that Minnesota couldn't match its offer.

"That was very distasteful to me, to retaliate so to speak like that (against the Vikings)," Holmgren said. "I do believe the commissioner should look into these kind of clauses. We work so hard on trying to gain labor peace and a new collective bargaining agreement and then we as clubs allow agents to get cute and circumvent it. On the playing field there are rules and there are unwritten rules about how the game should be played in the spirit and the fairness of it all. It doesn't make sense to me that we had to lose such a fine football player this way. I was surprised by the ruling."



Interesting to see Holmgren's take on Burleson's poison pill contract.

GBMelBlount
03-08-2007, 10:02 PM
Business is business. If I were writing up agreements, I would use the poison pill as long as it was legal. Pgh is a standup team but again, if the poison pill is legal, use it. If it is over ruled, great, but use it as a tool if it is available.