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| Victor Cruz making the most of opportunities. Photo credit NFL |
Victor Cruz was like many undrafted players, an unknown commodity with huge ambitions. The Patterson, New Jersey product initially signed with Abu Toppin of Reliance Sports Management (RSM). As an Undrafted Free Agent (UDFA) with the hometown club, Cruz burst onto the scene in his first preseason, but was relegated to Injured Reserve.
After a breakout 82 catch 2011 campaign, Cruz hired Malik Shareef for representation, and heralded marketing firm IMG Worldwide for off the field opportunities. Cruz delivered another strong 2012 season, becoming Eli Manning's goto wideout. Earning $ 540,000 in base salary, Cruz's production exceeded his compensation significantly.
The Salsa Star used the New York stage, landing lucrative endorsements with Campbell's Soup, Foot Locker, Pepsi, Time Warner, and Got Milk. Simply, Cruz became the most marketable athlete in New York not named Derek Jeter or Eli Manning.
Victor Cruz is currently a Restricted Free Agent (RFA), as he has not accrued enough league years to be unrestricted. Malik Shareef faced a difficult dilemma. With IMG earning the major endorsement commissions, his loan opportunity to earn money with Cruz was a lucrative extension. When his demands exceeded the Giants offer framework, an impasse emerged, and Cruz began seeking new representation. For Cruz, it was about protecting marketability while being compensated fairly. With Shareef not benefiting from endorsements, he didn’t consider the ramifications a turn in public sentiment could have on Cruz’s main income source- Endorsements
The Giants placed a 1st Round tender on Victor, paying him $ 2.89 million in 2013. If his production continues, the team could hypothetically Franchise Tag him in 2014 for roughly $ 10 million. Two years 12.89 million is the Giants commitment under this framework.
With progress stagnant, Cruz replaced Shareef with Jay-Z in his new venture Roc Nation. Under the radar was CAA Sports, the preeminent agency in professional sports, would handle football contract negotiations.
Headed by Tom Condon & Ben Dogra, the Giants have a track record with CAA. While establishing himself as one of the top GMs in the league, the complexities of the Cruz negotiation exceeded Jerry Reese's pay grade. Owner, President & CEO John Mara interjected himself and serves as the major arbiter in the process at this juncture.
Why is the situation so complex? Take a look at the CAA Clients on the roster in recent years.
QB Eli Manning
WR Victor Cruz
OT Sean Locklear
DE Mathias Kiwanuka
DE Osi Umenyiora
LB Mark Herzlich
CB Corey Webster
The name at the top catches your attention. The way CAA does business is leveraging Franchise cornerstones into the negotiations of other clients with respective teams. Cruz hired CAA recognizing the Giants would have to handle him with kid gloves due to his rapport with Manning, and an extension with the Franchise Quarterback eventually comes to fruition. Manning enters the final 2 years of his $ 97.5 Million contract, with 20+ million cap figures for 2013 & 2014. The Giants are clearly committed to extending Eli long-term, and CAA will argue- Why not compensate his favorite wideout generously first?
This strategy is used consistently by CAA. It puts tremendous pressure on General Managers to acquiesce to demands. Rather than allowing the top agent in the business to push around his GM, John Mara showed tremendous leadership by spearheading the negotiation.
The Giants reportedly have an offer on the table. Not wanting to loose the New York endorsement opportunities, Cruz will eventually accept a deal. Herein lies the rationale for hiring Condon and jettisoning Malik Shareef. Whereas Shareef had no stake in Cruz's off the field income, CAA does through their partnership with Jay-Z's Roc Nation.
It's a matter of time, but Victor Cruz will be a New York Giant for many years to come. The question remains, at what price?
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