Trading star quarterback Matthew Stafford represents the promise of a serious rebuild by the new Detroit Lions regime, but it comes at a big sacrifice for a team running low on ways to keep fans and sponsors excited.
Stafford, arguably Detroit's most popular active professional athlete, has been one of the main attractions at Ford Field throughout his 12 years leading the team.
Without him, the Lions are left with what could be a less-compelling product, at least in the short term. That could hurt viewership, ticket sales and sponsor interest, compounding the financial strain on the organization last year due to COVID-19.
Football fans won't be the only ones missing Stafford when he leaves for the West Coast in a blockbuster trade deal with the Los Angeles Rams. He drew lucrative endorsement deals that helped land him on the list of highest paid athletes.
In 2017, the Lions gave Stafford a five-year, $135 million deal, the largest in NFL history at the time. He also brought in an estimated $2 million in endorsement deals annually, according to Forbes, with national sponsors Nike, Fanatics, Panini and PepsiCo as well local companies Ford Motor Co., Blue Cross Blue Shield of Michigan and St. Joseph Mercy Oakland Hospital.
Stafford's more than decade-long deal with BCBSM and three-year deal with St. Joe's, where his wife Kelly had their four daughters, centered on promoting children's health. Terms of the contracts were not disclosed, but each came with an opt-out opportunity if Stafford left the market.
"Blue Cross was one of Matthew's first corporate relationships after coming to Detroit, and we've continued it because of Matthew's commitment to children's health," R. Andrew Hetzel, vice president of corporate communications for BCBSM, said in an email. "We appreciate all of Matthew's work with us, and we wish him, Kelly and their kids the very best as his career continues."
Stafford signed on to be a spokesman for St. Joe's in 2017 shortly after his twin daughters were born there. That deal continues through August.
"While we are saddened to see Matthew and his family leave Detroit, we are excited for their future and grateful for their partnership over the years," Michele Szczypka, vice president of marketing and communications for Trinity Health, said in an email. "The option of ending the agreement in the event that Matthew left Detroit is written into the contract, but nothing changes the fact that they chose to have their four girls at St. Joe's prior to our agreement."
Although generally media-shy (Kelly handles social media for the family), Stafford made a few appearances in Ford F-150 commercials over the past five years. Terms of his deal with the automaker were not disclosed, and it's unclear if the deal would be terminated with a trade. Ford did not respond to inquiries.
The Staffords also gained respect from the philanthropic community for sharing some of their wealth. They offered a seven-figure financial commitment to nonprofit S.A.Y. Detroit in 2015 to help activate the Lipke Recreation Center in Detroit. When the pandemic hit, they donated $100,000 to Forgotten Harvest to help the nonprofit distribute food to those in need and helped provide meals for first responders and hospital workers.
When news of Stafford's trade broke this past weekend, fans flocked online to the Acoustic Neuroma Association to make $9 donations, honoring the quarterback who wore number nine for Detroit.
Stafford's trade won't be official until March 17 when the 2021 league year begins, but the overhauled Detroit front office has already looked ahead to the financial implications of the trade for this season and several years beyond.
In return for Stafford, the Lions received two first-round picks, a third-round pick and quarterback Jared Goff. The first-round picks were the prize of the deal, which analysts say was nearly best-case scenario for the Lions. The third-round pick is for the 2021 draft, while the first-round picks will come in the 2022 and 2023 drafts, according to the NFL Network.
Relieving the Rams of Goff's massive four-year, $134 million deal was the selling point for Los Angeles, which wanted out of the contract. Despite the buyer's remorse, Goff is no slouch – the 26-year-old No. 1 overall draft pick in 2016 has had three playoff appearances, two playoff wins and a Super Bowl appearance in 2019. Stafford, who turns 33 on Sunday, has not won a playoff game in three appearances.
The NFL salary cap is projected to be $175 million this year, according to the league and players' association. Rolling over $12.8 million in cap space from 2020 gives the Lions $187.8 million to spend on player payroll in 2021, according to the Pro Football Network.
The Stafford trade immediately frees up around $14 million in salary cap space for the Lions this season, even though the team will take a $19 million cap hit from bonus money still owed to Stafford. The Rams are taking on the $20 million base salary owed to Stafford this season and $26 million in 2022 before he becomes a free agent.
At the same time, the Lions take a big cap hit by taking on Goff's four-year contract, which guarantees $25 million for the next two seasons. While the team has indicated that Goff will be their starting passer, the Lions could cut him after the 2022 season with no penalty and save $25 million in player payroll.
The Lions can more easily stomach a cap hit early in the rebuild as they look to develop young talent from the draft and later consider big investments in established players that would ideally round out a winning team. Or maybe they already have more pieces to that puzzle than it seems.
"…I couldn't be more excited for this next chapter and am ready to attack this new opportunity that lies ahead," Goff said in a Twitter post on Wednesday. "Detroit, here I come."
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February 04, 2021 at 06:00PM
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How Matthew Stafford trade impacts Detroit Lions, local sponsors - Crain's Detroit Business
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