LA Rams Odell Beckham Jr. gambled and may win the jackpot

When the LA Rams signed Odell Beckham Jr. to play a partial year for them through the end of the 2021 NFL season, there was little reason to break open the contract to learn what specific details lie in the small print. But as the LA Rams have advanced through the NFL Playoffs, the specific salary cap available for the team in the 2022 season has shrunk to a rather significant deficit.

At one point, the Rams actually projected to have a slight surplus of funds in 2022, but that has evaporated, and the team is now facing a deficit of (-$8,092,364), and it could be even worse very soon. How can this be? Well, Odell Beckham Jr. gambled on the LA Rams in his contract language, and right now his bet is paying off in a big way.

The LA Rams, much like they had with previous veteran wide receiver DeSean Jackson, infused OBJ’s contract with a host of incentive clauses in case the LA Rams enjoyed success in post-season play. $3 million worth of incentives, and so far, he has qualified for a $2.5 million payment of those incentives.

71 percent incentives

OBJ signed a $750,000 base salary to join the LA Rams, plus an immediate $500,000 signing bonus. While that may seem relatively cheap, (it is) for a veteran wide receiver, the contract did not end there. The contract included a host of team-oriented achievement incentives that included (per Spotrac.com):

Wildcard win (or BYE) –          $500,000 (earned)
Divisional win –                        $750,000 (earned)
NFC Champ win –                     $750,000 (earned)
Super Bowl active but loss – $500,000 OR (likely earned BUT…)
Super Bowl Win   –                $1,000,000

Total incentives                      $3,000,000

In the end, Odell Beckham Jr. agreed to place nearly 71 percent of his potential earnings on the potential of the LA Rams to win Super Bowl LVI. And yet, here we are, just three days away from the LA Rams possibly doing exactly that.

More incentives?

Beckham’s original contract was $1.25 million guaranteed.  But he’s already earned twice that amount in incentive pay alone, already at $2.5 million. Since the 2022 salary cap includes a rollover from the 2021 season, that explains where a significant portion of the Rams surplus has ended up.

So what do you think? Clearly, this incentive-laden contract has worked out well for both sides. When the Rams reworked the contract for offensive tackle Andrew Whitworth, (per Spotrac.com), they embedded similar playoff/Super Bowl incentives as well. So far, Whitworth has earned $1 million and may earn another $500,000 with a Super Bowl victory.

We noticed a distinct pattern in the LA Rams contracts/player performances after the team’s sensational 2018 season, because the payments were guaranteed without any performance incentives. In essence, three key offensive players regressed considerably after signing a lucrative contract. With this new template, once that incentivizes the success of the team to ‘kick in’ payment clauses, the Rams have stumbled upon a much better method to ensure a return for their investment.

What do you think? Money well spent? Or do you prefer the Rams to go back to guaranteed contracts, regardless of how well the team, or the player, does?