Has Malcolm Butler Been Wronged?
Malcolm Butler has had a meteoric rise. Only nine months after going undrafted in the 2014 NFL Draft, he was a Super Bowl hero, making the biggest interception in NFL history, literally snatching the victory from Seattle.
In 2014 Butler signed a $1.53 million, three-year contract with the New England Patriots. This came with no signing bonus but has allowed him to earn an additional $606,880 in incentives resulting in total compensation of $2,136,880 over his first three years in the league. Given his Super Bowl heroics and his tremendous play, this has been a bargain for the Patriots.
Now, Butler is a free-agent. Sort of.
The rules of the collective bargaining agreement between the league and the players’ association dictate that a player with three years of experience, like Butler, becomes a restricted free agent. The Patriots have extended an offer to Butler (a first-round tender of $3.91 million) which now means that they have the right to match any offer Butler receives or, if they choose not to match the offer, the Patriots receive the first-round draft pick from his new club.
Unambiguously, if Butler were an unrestricted free agent, he would command 3 or 4 times this salary for numerous years, with tens of millions in guaranteed money. For arguments sake, we can assume he would receive something in the range of $65 million over 5 years including $40,000,000 million guaranteed, as New England just agreed with Stephon Gilmore. Maybe more, maybe less but in that ballpark depending on the desperation of the new team.
However, unrestricted free agency doesn’t kick in until after four seasons in the league. This knife cuts both ways. Had Butler signed a 4-year deal, he would be an unrestricted free agent at the end of the contract, but that wouldn’t be until the end of the 2017 season, not now. Under a 4-year contract, he would be set to make roughly $1 million this season, including incentives. However, his excellent play (as confirmed by a Pro-Bowl selection and being named a second team All-Pro) has earned him the first-round tender of $3.91 million.
Had Butler initially signed a 4-year contract, it would likely have earned him roughly $3.1 million over the 4 years (his actual $2.1 million for 2014-2016 plus the estimated $1 million for 2017). However, since he signed a 3-year contract he benefits from the huge pay increase for 2017 (the $3.91 million first-round tender) for a four-year total of $6,046,880. So, while he might feel hard done by not being an unrestricted free agent, the three-year contract followed by the tender, will see him making an extra $3 million than he would have made otherwise.
It is also important to remember that either way - a three-year deal plus the one-year tender or an initial four-year deal - he would have become an unrestricted free agent after the 2017 season so his big pay-day isn’t reduced or delayed. He can still cash in next year, while still having made more in 2016 thanks to his current situation.
For comparison, his four-year earnings dwarf those of Jimmy Garoppolo and James White, both drafted by the Patriots in 2014. They even exceed the four-year earnings of Derek Carr, the highly-drafted quarterback of the Oakland Raiders who was selected to the last two Pro-Bowls. Butler’s four-year earnings are below but comparable to Jason Verrett, the Pro-Bowl corner back taken by the Chargers in the first-round of the 2014 Draft. Even though Verrett received a $4 million signing bonus given his high draft status, his four-year earnings will be $7.8 million compared to Butlers $6 million. Obviously Verrett’s $7.8 million is still 30% higher than Butler’s, but as an undrafted free-agent, Butler’s compensation compares very favorably, and he stands to make about 4 times more money in 2017 than even most of the standouts from the 2014 draft class. While his total career compensation lags way behind Jadeveon Clowney, the number one overall selection in 2014, thanks to Clowney’s massive $14.5 million signing bonus, Malcom Butler will make more than Clowney in 2017.
Malcolm Butler stands to be paid very well in 2017, even more than his highly-touted peers from 2014, unless he makes the ill-advised decision to sit-out the season and try it all again next year from the same spot. He did not receive a lofty signing bonus because he was not drafted at all, let alone highly. Some want to say that he is a victim of the system. He is no more a victim than Clowney or fellow superstars Khalil Mack or Mike Evans who will also make far less than Butler this year. The only difference is they received signing bonuses based on their college performance while Butler received only a three-year contract because of his uncertainty. In hindsight, he is far further ahead as a restricted free agent than he would be if the Patriots had drafted him in the second or third round and signed him to a four-year contract with a nice signing bonus. Had that happened, we likely wouldn’t have heard a word about his situation even though he would be making far less money this year and in total over the four years. (Note: Undrafted Free Agents such as Butler sign the same three-year rookie minimum contract making them RFAs at the end of the third year.)
There is no justifiable reason for the Patriots to pay him more now. Even if they do, the salary cap makes it a zero-sum game so it would be coming out of his teammates pockets, not the pockets of the owner or the fans. This is the direct result of the contract both sides were happy to sign under the existing collective agreement. He has excelled, and that is what earned the first-round tender that he, or his agent, are apparently so upset with. Indeed, Butler will be paid far less in 2017 than most elite cornerbacks in the league. However, he will be paid far more than any of them were paid in their fourth years and he will be paid more than the elite players from the 2014 draft. He has not been wronged.