NFL Network's Michael Lombardi reported that the 2013 second-round pick will become a first-rounder if the Raiders play in the AFC Championship Game in either of the next two years. NFL Network's Albert Breer also cited a league source in reporting that Palmer reworked his contract, which runs through 2014, to a maximum of $43 million as part of the trade.
Fox Sports insider and NFL Network contributor Jay Glazer first broke the news of the trade Tuesday morning via Twitter.
Brown had been adamant that he wouldn't trade Palmer, who hasn't played since the end of last season. The two-time Pro Bowl quarterback decided he wouldn't play another season with Cincinnati, even though his original contract had $50 million left on it.
"Several factors made us believe that trading Carson to Oakland was the best move for the Bengals at this time," Brown said in a statement released by the team. "The principal development has been Andy Dalton, who has shown himself to be one of the best and most exciting young quarterbacks in the NFL. We have a good, young football team, and Andy can be the cornerstone of that team for a long time.
"We also find ourselves rather suddenly in position of being able to receive real value for Carson that can measurably improve our team -- which is performing well and is showing real promise for this year and years to come. When this opportunity arose, we felt we could not let it pass, and needed to take a step forward with the football team if we could."
Glazer reported that Raiders coach Hue Jackson's close relationship with Brown played a large role in getting the Bengals owner to move away from his hard stance that Palmer, who hasn't thrown an NFL pass since the end of the 2010 season, wouldn't receive his wish to be traded before the league deadline.
Palmer has stayed in "amazing shape" while training at Athletes Performance Institute in Southern California for the past few months, API lead trainer Travelle Gaines told NFL.com senior writer Steve Wyche. Palmer has worked out regularly and been throwing passes for free-agent wide receivers Terrell Owens, T.J. Houshmandzadeh and Hank Baskett, Gaines said.
"Carson helped elevate the franchise here," Bengals coach Marvin Lewis said in the team statement. "He played at a very high level for us, and I wish him well with the Raiders. We obviously have a strong belief in the ability of Andy Dalton to continue playing well and to be the leader of our offense. He has been exceptionally effective for a rookie, and as good as he has been, we know he has tremendous potential to be even better."
Palmer, who will turn 32 in December, played in 97 games during his eight years with the Bengals, throwing for 22,964 yards and 154 touchdowns with 100 interceptions and an 86.9 rating. He was the only Bengals quarterback to throw for 4,000 yards in a single season (2006, 2007) and the only one to throw 30 touchdown passes in a single season (2005).
With Palmer threatening to retire if he wasn't traded, the Bengals proceeded to draft Dalton in the second round of this year's draft and have jumped out to a 4-2 record under the rookie quarterback.
"I like Carson," Zimmer said. "This is a good deal for him. He gets the chance to get out there with Hue, he'll know the offense. But with our team, it hasn't been holding over us in any way. Really, he hasn't been here, and the young quarterback, it's his team now. I don't think the players care much about the picks, but that's good for the organization, too.
"The organization is basically getting the picks for nothing."
The Associated Press contributed to this report.