Bears Rumors

JULY 19: Despite the efforts from Williams’ camp to land a precedent-setting pact, Florio confirms the deal falls firmly in line with the standard rookie-scale structure. Even the matter of offset language is as expected based on typical rookie contracts. Moving on from Williams with term left on the deal would indeed leave the Bears in line for offsets, though team and player will of course hope such a situation does not arise.

This is a bit of a surprise as Joel Corry of CBS Sports notes that the Bears made such concessions on offsets for Mitchell Trubisky, whom the team drafted No. 2 overall in 2017, and Justin Fields, No. 11 overall in 2021. It’s not even like either of those situations came back to bite them as Trubisky played out the entirety of his rookie contract in Chicago and Fields, while no longer with the team, had his contract taken over by the Steelers when they acquired him via trade.

JULY 17: The Bears signed No. 1 overall draft pick Caleb Williams to his rookie contract today, and we’ve already reported on a number of intriguing negotiation tactics utilized by Williams throughout this process. These include the lack of an NFLPA-certified agent, opting instead for a “board of directors” approach, and the quarterback’s aim to secure a no-franchise tag clause in the deal.

According to Mike Florio of NBC Sports, though, these weren’t the only tactics Williams pursued. After already trying to set new precedents with the no-franchise tag clause, Williams reportedly also attempted to break new ground on how his rookie salary will be taxed. Williams’ father has experience working in commercial real estate, providing his camp with unique insight into tax law.

One of the attempts employed by Williams’ camp reportedly tried to get Williams paid as an LLC. As a corporation, Williams would face different tax laws than those of an individual. While the league’s Collective Bargaining Agreement doesn’t appear to have any stipulations limiting this approach, the NFL ultimately made the overarching call to deny Williams, telling the Bears that a player’s money can’t go to a business entity other than the individual.

A second approach saw Williams attempt to model his rookie contract payments after a forgivable loan. In this scenario, Williams could have received the money tax-free until the loan was forgiven in as many as 10 years. Once again, through the league’s advice, Chicago ultimately turned down this option, as well.

Other rumors suggest a situation in which the contract would’ve included “language that will void future guarantees,” bringing up questions of whether or not the Bears would be entitled to receive an offset should they release Williams with guaranteed money remaining and he signs with a new team.

Credit where credit is due, Williams and his crew were extremely creative in their attempts to maximize the value of Williams’ new source of income. The Bears appeared to be willing to play ball but were time and again blocked by the league. While unsuccessful in these attempts, Williams may have opened the door for future first-round picks to have more grounds for negotiation in their rookie contracts.

Reported as completed Tuesday, the Bears’ negotiations with Caleb Williams may not be done just yet. As this is a modern rookie contract, a deal is expected to be finalized well before the season. But this year’s No. 1 pick asked for an unusual clause, representing one of the hold-ups.

Set to be tied to a fully guaranteed deal worth just more than $39MM in total, Williams is believed to have asked for a wrinkle only select veterans receive. The 2022 Heisman winner asked the Bears to include language in his rookie contract preventing them from applying the franchise tag at the conclusion of his first deal, according to Pro Football Talk’s Mike Florio.

No rookie has secured that term, and Florio adds the Bears made the expected move to decline their new quarterback’s ask. Dak Prescott secured this term with the Cowboys, while other passers — Kirk Cousins with the Vikings, Drew Brees during his final Saints years — were on de facto no-tag arrangements due to having been previously cuffed twice.

The tag represents a major tool at teams’ disposals. Removing it from the equation would set a fascinating precedent for the Bears and perhaps the No. 1 draft slot on the whole. Chicago continues to negotiate with Williams, but the team is not adding that clause.

Williams was loosely linked to a potential power play coming out of USC, but nothing transpired on this front. The USC standout could have conceivably pushed for a no-tag clause when determining whether to enter the draft, as the threat of him resuming his Trojans career — rather than joining the Bears — existed if this was especially important. That would have meant passing on a clear-cut path to the No. 1 draft slot and the money that comes with it. Regardless of the NIL era changing the game for current college standouts, Williams would not have been able to command that $39MM number as a college QB.

Quarterbacks rarely reach the tag precipice, generally being signed between their third and fourth seasons — when they become extension-eligible. Trevor Lawrence became the latest passer to take this route, one that gives QBs monster paydays early — replacing a rookie-deal fourth season — and provides teams with early control as the market skyrockets. But the tag gives teams considerable leverage during most negotiations.

Cousins and Prescott — as non-first-rounders — took different routes and ended up tagged. Lamar Jackson is the only first-round QB outlier in recent NFL history, failing to come to terms on a Ravens extension in 2021 or 2022. That led to a tag and a then-record-setting extension. Prescott also negotiated with the Cowboys for three offseasons and eventually used the threat of a second tag number clogging Dallas’ 2021 cap sheet as leverage to secure the terms he did. Williams’ camp undoubtedly paid attention to those proceedings, as team gives up considerable power in negotiations without a tag in the picture.

The Bears have not been in position to pay a homegrown QB for many years, seeing Mitch Trubisky and Justin Fields fail to warrant such commitments. Chicago did reward Jay Cutler with multiple extensions, but the eight-year Bears starter was a Broncos trade acquisition. If Williams shows promise early, the Bears will surely have a $60MM-plus windfall earmarked for 2027, when he first becomes eligible. The fifth-year option (for 2028) would come into play during the ’27 offseason, but the Bears will not allow a no-tag clause to be part of their QB1’s first NFL contract.