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Many critics panned the Oakland Raiders for Al Davis's spending spree this spring, saying it is too expensive and claim it caused Davis to second guess himself...

Al Davis, Raiders Playing a Hedge on Free Agency

by Greg Peterson (Scribe)

32

4,736 reads

Opinion

July 16, 2008


Many critics panned the Oakland Raiders for Al Davis's spending spree this spring, saying it is too expensive and claim it caused Davis to second guess himself.

Meanwhile, Raider fans are concerned with the future free agency situation in Oakland, but the fact is that the Raiders' moves this off-season not only added talent to the roster, but from a business point of view were a hedge against free-agency uncertainty in the near future.

The key is that under the rules governing the expiring collective bargaining agreement (CBA), the looming uncapped years will actually limit free agency.

Not unlike smart airlines like Southwest and Northwest, who are benefiting from hedges they made against rising fuel prices years ago, the Raiders are controlling the cost of acquiring and keeping talent in the face of free agency uncertainty following 2009.

Let’s look at the moves the Raiders made this spring and their long term effects.

Tommy Kelly's contract shocked many inside the NFL. The Raiders felt that Kelly is an elite DL, comparable to Vince Wilfork, Albert Haynesworth and Corey Williams. Many critics argue against that and say the Raiders way over paid.

But viewed through the prism of the new rules that Free Agents have to qualify with six years instead of four in 2010, the Kelly deal makes sense as all of these tackles will be the youngest free agents available if they aren't under contract at that time.

The Kelly deal does three things for the Raiders, it keeps him on the roster now, it sets the price for future free agents at his position, and it keeps him on the roster through the uncapped years at a fixed price.

The Gibril Wilson deal also drew a lot fire as being too expensive.  But Wilson, like Kelly, also would be eligible for free agency in 2010.  The Raiders believe paying Wilson now is cheaper than competing for him or an equally talented player in 2010, if he were available.

The DeAngelo Hall deal also makes more sense in light of the future free agency and Nnamdi Asomugha’s situation. Effectively the two-time Pro Bowl corner back, DeAngelo Hall was the Raiders' second round pick in this year’s draft. Like Kelly, Hall’s contract gets him and keeps him playing through 2011.

But Hall’s contract is also a hedge against losing Asomugha to free agency in 2010.

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32 comments Last one added 4 months ago — Leave a Comment

  1. Philip Fitch 11 months ago

    Good article, really enjoyed it.

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  2. greg pitsch 11 months ago

    good article! a good read,

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  3. D Stevens 11 months ago

    Thanks, the cap, free agency eligibility and the CBA confuse the hell out of me. You have made this much simpler to discuss with the haters!

    Go Raiders!

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  4. Natalie Svider 11 months ago

    Very good read. Most of which I didn't even think about before I got all aggro about them not signing Aso to a l/t deal.

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    • Greg Peterson 11 months ago

      Thanks. The new free agency rules are like the best kept secret in the NFL and that Kirwan article is two months old. On the bright side we still get two more years of Nnamdi and then he gets to set a new single season contract record for cornerbacks in 2010, everybody wins.

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  5. Daniel Topchi 11 months ago

    I was a bit curdled about the Aso deal but now that you've cleared things up I don't feel so
    bad, thanks for the info.

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  6. Patrick Brizuela 11 months ago

    Great read! I became a little worried with the situation with Aso. But after reading this article, it helped alleviate some of the worries I had. Aso can prove to everyone the next two years that he will deserve the money he gets when we resign him.

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  7. anthony atencio 11 months ago

    Good morning Nation,

    I mentioned this a few days ago on this site. That Big Al is thinking for the future. Funny they say he's lost it but once again he is prepared for the future. In the 80's he was also the first to bring up luxury suites. Man I wish I could sit with Mr. Davis and just talk football. Nice artical!!!!!

    New Mexico Raider

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  8. Gerald Evans 11 months ago

    Nothing from Mike49er???
    No slam about what an idiot Al Davis is? About how out of touch with todays NFL he is???
    It must be so hard to be so much smarter than the rest of us, I don't know how he bears the burden...
    Enjoy another season of hating us!!!

    Raider Nation!

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  9. Arizona Raider 11 months ago

    Al Davis is a freaking genius. He has forgot more about football than anyone here will ever know. He's just proved that again. Ever wonder why the writers always gripe about Mr. Davis and not idiot owners who meddle in their team like Dan Snyder and the fool than owns the Falcons? Mr. Davis could care less about the media, that's why. JUST WIN BABY!

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  10. The_KRAKEN 11 months ago

    Aso not signing also worried me, but now with a little more clarification the blind man sees !!!

    Thanks

    VIVA LOS MALOSOS !!!!!!!!!!!!!!!!

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  11. Joe Parks 11 months ago

    Greg, this is one of the most enlightening articles I have had the pleasure of reading in a long time. You explained the cap/free agent situation in a very easily understood manner. Thank you. I really enjoyed it. I truly feel the average fan has not really considered the looming uncapped yeras and the effect they could have on whichever team they follow. Especially if you are a fan of a small market team like Oakland. This article really puts all of that in perspective.

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  12. Bruce Milroy 11 months ago

    That is the most thorough, comprehensive article I have read on the upcoming free-agency situation. I am glad that I did not have to do all of that research. Thank you for a job well done.

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  13. Butch fowler 11 months ago

    i said the same thing on another blog a couple months ago, but wasnt quite as professionally written.

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  14. A T 11 months ago

    I will not make a judgment on the offseason moves Al Davis has made until they prove good or bad, but from recent and not so recent past experience, the burden is on Al to prove all his critics wrong, including us loyal fans who have suffered through failed seasons for the last 22 years, save and except the last Bo Jackson year and the Gruden years. And this is only one side of the story.

    The other side of the story, the one that does not have to do with football per se, and all to do with being human and a professional, is the fact that Al has treated his players and coaches, some of them being the heart and soul of the team, unfairly and disrespectfully. Think Marcus Allen, think Todd Christensen, think Charles Woodson, think Jon Gruden, think Art Shell, among many others, and think Lane Kiffin as of late. Al´s attitude towards others, and particulalry towards the most vital part of his franchise, the players and coaches who make it possible to be successful, has clearly deteriorated and been bottom-line careless and unprofessional. Have any of the players who have left our team recently said anything good about Al? On the contrary. I for one do not like a boss who hires a top prospect to "lead" a team, only to stick a dagger in his back. That is just plain wrong, and is not done by a good human being. Doesn't that raise a red flag in your book? But I bet there are some of you who appreciate his way of dealing with people. After all, its his team. So let him kick you in the nuts, and keep asking for seconds, again and again, instead of standing up for what is right.

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    • Greg Peterson 11 months ago

      Shoot, if you think Al Davis doesn't appreciate his multi-millionaire overgrown kids enough, you should come hang drywall and paint with me for $15 an hour! You won't make millions but you will be abused just like a Raider ;)

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  15. Joseph Dorrell 11 months ago

    Refreshing to read something that actually required homework, and fact inclusion. Not just an opinion.

    I really enjoyed the blah, fact riddled read. Good job.

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  1. hawaiiR8dr 11 months ago

    Thanks. Excellent take on the "Raiders" situation

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  2. Tomycar Car 11 months ago

    the only issue i see is that the players union threatens a walk out if thier isnt a CBA in place..so no one really is sure if there will even be a season in 2010

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  3. Raider Ken 11 months ago

    This was a great read. There was actually a lot of research put into this article. Thanks for writing this I think it opened a lot of eyes to the thinking behind this offseasons moves.

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  4. Greg Peterson 11 months ago

    Thanks for the kind words y'all. And thank you Raidernews.com for giving this article visibility.

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  5. Eian Bell 11 months ago

    thanks for the article great read. i understand the bare minimum when it comes to fa and the cap and everything, what makes sense to me is hard hits and huge runs, big interceptions and touchdowns.

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  6. Josh Prope 11 months ago

    o no what will we ever do without aso. lets go spend a rediculous amount of money on players half his talent and call his majesty al davis a visionary for preparing for the future. come on the raiders are in the toilet. al davis got a raw deal when he signed on. now i know that every raider fan will disagree but the raiders are going to have to spend another couple of years rebuilding a young team and probably go through a couple more coaches

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  7. Greg Peterson 11 months ago

    So, you think Al Davis overspent?

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  8. Josh Prope 11 months ago

    i have commented on many articles similar to the idea of al davis spending all this money for these players. he could have spent the money much more economicly by simply building depth at each position. i think that we can agree when i say that a good starting lineup will get u wins but a good depth chart will get you wins all season

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    • Greg Peterson 11 months ago

      So you think he should have got another punter? Which players were available that you think he should have pursued rather than the ones he signed? What makes you think the Raiders didn't acquire more depth?
      When retired coach Fred Biletnikoff was asked what was the problem with the Raiders last year his answer was too many backups. Why is Fred B wrong? Why would adding backups instead of starters improve the Raiders?
      I would say that replacing Fabian Washington with DeAngelo Hall is an upgrade.
      I would say that replacing Stuart Schweigert with Gibril Wilson is an upgrade.
      I would say that replacing Warren Sapp with Tommy Kelly was the best available move.
      I would say that replacing Jerry Porter with Javon Walker is probably a push.
      I would say swapping Kwame Harris for Barry Sims goes without saying.
      I would say what do you think Greg Spires, Kalimba Edwards, Drew Carter, Edgerton Hartwell, Marques Tuiasosopo, and John Wade are for?
      I would say depth is great. But if you're losing starters and starting backups, you can expect wins to be as hard to come by as they have been for the Raiders.
      I would say Al Davis was as aggressive this offseason as he could be and had to be given the present free agency environment and that aggressiveness was the best strategy given the future of free agency.

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  9. Al's Wingman 11 months ago

    There are no surprises in FA signings. Al goes after the players her feels are best fit. It is not complicated. Hedging his bets is the right phrase for it.

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  10. Michael Schulze 4 months ago

    After 7 months, this article still holds up. Excellent. I would say though, that I would have preferred we keep Barry Sims than swapping him for Kwame Harris. But your conclusions are still right on. You should update this article and repost it so people can see it again. It deserves a re-read.

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    • About the Author Greg Peterson (scribe)

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