Why Tom Brady agreed to a huge pay cut

Here are 3 reasons why the quarterback will get significantly less money than other star quarterbacks are paid.

By Kim Peterson Feb 26, 2013 2:17PM
Make no mistake, Tom Brady is still getting a huge amount of money.

But the sports world is buzzing because the 35-year-old New England Patriots quarterback is taking a major pay cut. The three-year contract extension he agreed to on Monday is reportedly worth about $27 million -- half as much as he was previously paid.

The going rate for star quarterbacks is much higher, The Associated Press reports. Drew Brees takes home a cool $20 million a year, while Peyton Manning gets about $18 million a year.

The new deal pays Brady less than the four-year, $72 million contract (with $48 million guaranteed) that he previously had. So why would the two-time league MVP and one of the best quarterbacks in the game settle take the pay cut? Here are three reasons:New England Patriots quarterback Tom Brady during the AFC divisional playoff in Foxborough, Mass. on Jan. 13, 2013 ( Elise Amendola/AP Photo)

More money for the team. Brady's contract frees up nearly $15 million in salary for the team, which will presumably make for a better lineup. Brady will now be a Patriot until he's 40, and if he's thinking about retiring then, he wants to go out with a winning team.

He doesn't need the money. Consider what Brady said about this in 2005, according to Sports Illustrated: "In this game, the more one player gets, the more he takes away from what others can get. Is it going to make me feel any better to make an extra million, which, after taxes, is about $500,000? That million might be more important to the team.''

He nearly doubles his guarantees. In an incredibly smart move for an aging quarterback, Brady nearly doubled his guarantees in case of injury. He went from a two-season contract with $30 million in remaining guarantees to a five-season deal with $57 million in guarantees, reports ESPN. Brady already experienced a major injury in 2008, and that could have been weighing heavily on his mind.

More on moneyNOW



20Comments
Feb 26, 2013 3:21PM
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It doesn't hurt when your wife made $45 million last year...
Feb 26, 2013 6:42PM
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Yes he's rolling in money but unlike so many he did

a great service for his team .  One of the good guys!

 

Feb 26, 2013 4:58PM
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kudos too Brady for his 2005 comment.. too bad more players didn't think that way.. grant it, people like Brady are the best at what they do, but there are alot of people out there that play the game for free just because they enjoy it, and its sickening when players with multi-million dollar contracts whine or threaten to strike because they don't make enough money.. here's an idea.. don't spend it all like an idiot
Feb 27, 2013 1:55PM
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It's the trend of all high paid players in mid thirty or mid career age depending on position. From Brady, Brees, Manning, and even Vick. Aging players see that it is better to power down their contracts for longevity and extension rather than price themselves out of a job or a career.

 

Smart move by all of them.

Feb 27, 2013 1:24PM
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Difference between Pujols and Brady.   Brady has class, respect for his team mates and will retire with a great legacy.  Pujols had class, had respect for his team and will retire a little richer.  He went for the money and Brady went for the team.  Which one is a team leader/player.  
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It's funny how some of you talk snap against Brady and actually gets down right hilarious when you say he sucks!! People tend to like the underdog. I know many Red Sox fans that would rather cheer for the NY Giants becuase Brady is so GREAT that he is better then most on a bad day... and so they hate him for it... Others hate him because at one point (and most likely on more than one occasion) in time he made your team look like a high school team playing an NFL team out there... I'll be willing to bet my life that if the Pats SUCKED, I mean SUCKED ROCKS, they would love that team. Brady already has proven that he is the BEST Quater back ever pound for pound!! And every single one of you haters would change your tune REAL fast if your team had the oppurtunity to pay his salary.. And the ones that are wondering if I just became a fan when Brady & Co became champs, I've been a fan since before Brady even before a QB some might not even know because they are too young by the name of Tony Eason... I became a fan when the Pats became a Cinderella Team back in 1976.. I was 11 years old. Gorgan was their QB at that time. Don't remember much but I remember my household started flying the Patriots banner outside on the porch right next to my father Air Force flag, old glory...  they just seem to fight so beautiful!!  Now I have my Pats flag, my USMC flag, and flying above them is Old Glory...
Feb 27, 2013 11:48AM
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What everyone is missing is that he is getting 3 milion more now and if in 2 years he can still perform at a high level they will renegotiate the contract again.  If he is religated to a back up roll then he will collect 7 million  year for that, which is very high for that type of role.
Apr 29, 2013 5:03PM
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I would love to see Tom win another superbowl and join Montana/Bradshaw with 3 wins.  Tom is smart.  He knows to get there, he could use other talent on the team.

 

And true, what's a million more a year if your family's combined income is already over 50 million a year. 

 

I would tend to think in the long run the NFL records will bring more lifetime endorsement cash than a mere million or two a year for a 3 year contract.

 

Yup, smart boy!

 

Can't wait for the Wheaties box!

May 29, 2013 1:58PM
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Great move here brady, Leading the way as usual

GO BEARS
Feb 26, 2013 5:34PM
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Mr. Brady is lucky he wearing  #12
May 29, 2013 3:43PM
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Bradshaw and Montana won 4 SBs not 3 as quoted by keep it dark.  I like what he did but really like to see someone give some back when they have a bad year.  Yeah, like that will happen. 
May 29, 2013 2:36PM
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Brady is a class act and has always been so...You Rock Tom
Feb 26, 2013 5:22PM
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If his performance against Baltimore was a indication of things to come then the extension makes sense.
Feb 26, 2013 5:22PM
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Think he can get by on that? Try a real job. 
Feb 26, 2013 4:53PM
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He sucked so bad against Baltimore in the playoffs that he felt embarrassed and he felt that his salary needed to be reduced to match his performance.
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