NFL Salary Cap & CBA
Treated like Signing Bonus
- Roster Bonus - Reporting Bonus - Workout Bonus
Weeks
17 Weeks, 1 bye week, 16 Regular Season Games
Free Agent
A player who is not under contract and is free to negotiate and sign a Player Contract with any NFL Club, without Draft Choice Compensation or any Right of First Refusal.
Unrestricted Free Agent
A player whose contract expires when he has earned at least four (4) Accrued Seasons is free to sign with any other club if he does so by July 22 of the same year. If he does not sign elsewhere, his exclusive rights revert to his old club after July 22 provided that the old club has given him a written tender by June 1st offering to re-sign him for an additional year at a ten percent increase in salary (the "June l Tender"). An Unrestricted Free Agent will be restricted in signing elsewhere, however, if he is designated a Franchise or Transition Player.
Accrued seasons
Accrued Season is a season during which a player has been on full pay status (Active, Inactive or Injured Reserve List) for six (6) or more regular season games. However, a player who is on the Exempt Commissioner Permission List, the Reserve Physically Unable to Perform/Non Football Injury List or t
LTBE
Achievements of player/team in previous season are considered likely to be earned in incentive and count towards the salary cap.
Prior to June 2
Bonus proration accelerates and counts on the cap in the current year
After June 2nd
Bonus proration counts on the next year salary cap for that team
NLTBE
Count towards the cap once they are earned that season
Credited Season
Credited Season is any season in which a player is on one of the following lists for at least three (3) regular season or post-season games: Active List, Inactive List, Injured Reserve List or Physically Unable to Perform List. A player will also earn a Credited Seaso n if he is released injured and paid the equivalent of at least three (3) game checks. Earning Credited Seasons entitles you to various benefits under the CBA. For instance, a player who has earned three (3) or more Credited Seasons in the NFL qualifies to receive the pension benefit. Keep in mind howeve r, that the definition for Credited Seasons for Minimum Salary purposes is slightly different. Please refer to CBA Article 26, Section 2 for more information.
89%
Each club is required to spend this average over 4 year periods 2013-2016 and 2017-2020
Franchise Player
Each club may designate one player who would otherwise be an Unrestricted Free Agent as a Franchise Player. The designation must be made within a two-week period beginning on the twenty-second day preceding the first day of the new League Year and will end at 4:00 p.m. New York time on the eighth day preceding the first day of the new League Year. The club must tender the Franchise Player an offer equal to the formula stated in Article IOof the CBA or 120% of the player's Prior Year Salary, whichever is greater. If the player's Club extends the non- exclusive tender offer, the Franchise Player can seek offers from other clubs, but the old team can match the offer or receive two first round draft choices from the offeri ng team. If the player's club extends the exclusive tender offer, the club retains excl usive rights to the player and he cannot negotiate with other teams. Once signed by the player, the tender is guaranteed.
Conditional Guarantees - Dates
Earned if player is on roster 3 days after Super Bowl Earned if player is on roster 5th day of league year Earned if player is on roster on week 17 of preceding year
Year-One Rookie Salary
For a Drafted Rookie means the highest amount of earnable compensation for which such player and Club have contracted in the first year of his Rookie Contract
Rookie Salary
For a Drafted Rookie means the highest amount of earnable compensation for which such player and Club have contracted in each year of his Rookie Contract regardless of whether any or all amounts are earned or con sided "likely to be earned" as set forth in Article 13, excluding only (A) the Fifth-Year Option Paragraph 5 Salary described in Section 7 of the CBA, (B) the amount by which the player's Paragraph 5 Salary may increase pursuant to the Proven Perfonnance Esca lator as described in Section 4, (C) minimum offseason workout per diem as set forth in Article 21, and (D) compensation for community relations /sponsor appearances (subject to the maximum amounts permitted in Section 3(b )(iv)). For an Undrafted Rookie means the highest amount of earned le compensation for which such player and Club have contracted in each year of his Rookie Contract that exceeds the then-applicable Minimum Active / [nactive Salary for each League Year of the contrac t regardless of whether any or all amount s are earned or considered "likely to be earned" as set forth in Artic le 13, excluding only (A) minimum offseason workout per diem, and (8) comp ensation for community relations /sponsor appearances (subject to the maximum amounts permitted in Section 3(b )(iv)) .
Total Rookie Allocation
For each Club, its proportional share of the Total Rookie Compensation Pool, calculated based on upon the number ,round and position of the Club's selection choices in the Draft, plus the Undrafted Rookie Reservation. The sum of the Total Rookie Allocations for all Clubs shall equal the Total Rookie Compensation Pool.
Undrafted Rookie Reservation
For the 2015 League Year, a maximum of $86,957 per Club may be paid to Undrafted Rookies as signing bonus or amounts treated as signing bonus. This amount (the "Undrafted Rookie Reservation") shall increase each subsequent League Year by the percentage increase of the Total Rookie Compensation Pool
Offseason bonuses (Reporting, Roster, WB)
Fully guaranteed at signing (skill,injury, and salary cap) are treated as SB
Fully Guaranteed
If contract is fully guaranteed for skill, injury and cap. Roster, Reporting, Workout Bonus can be prorated.
Minimum Salary Contract for Veteran Player
Incentive to sign older players. 4+ credited seasons (for salary purposes) required. Only 1 year contracts qualify. In 2015-2017, player receives his applicable league minimum base salary (see Article 26 for minimum salaries) and a maximum of $80,000 in additional compensation. Additional compensation is limited to signing bonus, reporting bonus, roster bonus, workout bonus or any incentive. Player's base salary counts on the salary cap at the minimum salary for players with two years credited seasons ($600,000 for the 2016 season) instead of at his actual base salary
95%
League wide spending must this amount over the same 4 year periods
Undrafted rookie contract
Mandatory 3 year contract
Rounds 2-7 contract length
Mandatory 4 year contract
First Round Rookie Contract
Mandatory 4 year contract and the club has option to extend contract for a 5th year for first rounders.
30 % Rule
No NFL Player Contract entered into in a season beyond the Final League Year may provide for an annual increase in Salary , excluding any amount attributable to a signing bonus (except option bonus proration) as defined in CBA Article 13, Section 6 of more than 30% of the Salary provided for in the Final Capped Year, per year, either in the season after the Final League Year or in any subsequent season covered by the Player Contract.
Veteran termination pay guarantee
One time right for termination pay. Need 4+ credited seasons, salary is guaranteed for season if he is on roster for first regular season game.
Waiver System
Player contract gets terminated. Club must notify the league by 4pm EDT any day of year. If player has finished less than 4 credited seasons for benefits purposes at the time he is being waived from team, the player's contract is exposed to all 31 teams.
Exclusive Rights Player
Player contract that expires at time when he has 0-1-2- accrued seasons. Cannot market services to other clubs, if his old club gives him a minimum salary tender on or before last day of that league year. If tender is provided player can only re-sign with his old club (unless tender is withdrawn)
Player with 4+ credited seasons for benefits purposes
Player goes on waivers, if before trade deadline, immediate Free Agent, can sign with anyone. If AFTER Trade Deadline he is subject to waiver system.
Injury determination
Player not maintaining a physical condition
Conditional Guarantees - injury protection
Player salary is protected during football activities Changes every year - percentage of P5
Restricted Free Agent
Player whose contract expires when he has earned three (3) Accrued Seasons. If his old club provides him with a sufficient "Qualifying Offer" on or before the last day of that League Year, it retains the right to either match an offer the player may get from another club or to receive draft choice compensation from the club making the offer. The Qualifying Offer is based on the level of draft choices the old club wants to receive. For example, the Qualifying Offer to a player with three (3) Accrued Seasons in 2015 for the Club to receive a second round draft choice and the Right of First Refusal in 2015 is $2,356,000. The Restricted Free Agent only has until about a week before the draft (April 30th in 2015) to generate an offer from another club. If he fails to get an offer, his exclusive rights revert to the old club unless the Qualifying Offer is withdrawn.
Veteran player
Player with 4+ credited seasons
Year-One Rookie Allocation
Proportional share of the Year-One Rookie Compensation Pool, calculated based upon the number, round and position of the Club's election choices in the Draft plus one-third of the Undrafted Rookie Reservation. The sum of the Year-One Rookie Allocations for all clubs shall equal the Year-One Rookie Compensation Pool.
25% Rule for Rookies
Rookie Contract may provide for an annual increase of more than 25% of the player's Year-One Rookie Salary unless such contract provides only for Paragraph 5 Salary equal to the then-applicable Minimum Active /Inactive Salary for each League Year of the Contract.
Traded before June 1st
SB accelerates and counted towards cap that year
Traded After June 1
SB proration from future years doesn't accelerate until the beginning of the next league year
Salary guarantees P5
Salary guarantees from future contract years accelerate onto the current years salary cap when a player is released. The June 2nd rule does not apply on P5 salary guarantees.
Salary Cap Termination
Team needs cap room to sign players who they feel are better players (rare)
CBA Expiration
The CBA runs through the last day of the 2020 League Year.
Total Rookie Compensation Pool
The League-wide limit on the total amount of Rookie Salary for which all Clubs may contract with Drafted and Undraf ted Rookies over the entire term of such Rookie Contracts.
Year-One Rookie Compensation Pool
The League-wide limit on the total amount of Year-One Rookie Salary for which all Clubs may contract with Drafted Rookies and Undrafted Rookies in the first year of such Rookie Contracts.
50% Down Rule
The difference in the salary in the 2nd contract year and the 1st contract year is treated as SB when salary in 2nd contract year is less than half of the salary of the 1st contract year
Minimum Active / Inactive List Salary
The minimum annual Paragraph 5 Salary that can be contracted to be paid to an NFL player on any Active list, or on the Inactive list, pursuant to this Agreement.
Option Bonuses
Treated like SB (prorated over life of contract for max 5 years) but proration doesn't begin until the year the option is exercised
Carrying Over Room
Unused salary cap room can carry over from one year to the next . Owners must give written notice with amount to the NFL no later than day before final regular season games
Conditional Guarantees - Termination Pay
Veterans on roster in week 1 have P5 guaranteed Veterans signed post week 1 have 25% P5 guaranteed Can only collect one time during career
Skill determination
Your performance level is unsatisfactory compared to your peers.
Transition Player
club can elect to use a Transition Player designation for one Unrestricted Free Agent instead of using a Franchise Player designation. If it does so, it must tender the player an offer equal to the formula stated in Article lOof the CBA or 120% of his Prior Year Salary, whichever is greater. A Transition Player can obtain an offer from any other team, but his old team can only match or not match the offer and it cannot collect any draft choice compensation. Once signed by the Player, the tender is guarant eed.
