Page 24 - a3 Brochure Flip

CONTRACTS

NFL Contracts 101

TERMS AND DEFINITIONS

Guaranteed Money – This is the dollar amount that the player will receive no matter what unless he otherwise
breaches his contract. Usually this comes in the form of a signing bonus, roster bonus or base salaries.

Fully Guaranteed - means that the money is guaranteed against Skill, Injury and Salary Cap Termination.

Overall Guarantee -- the total dollar amount the player will receive guaranteed after achieving a minimum level
performance incentive and/or a roster requirement. This term is no longer relevant in rookie contracts.

Guarantee at time of signing -- the total dollar amount guaranteed to the player upon signing the contract. If fully
guaranteed, the player will get this money no matter what, regardless of his performance, unless the player
otherwise breaches his contract.

Signing Bonus – This is the money given to the player upon the execution of the contract and payable usually
within a few days of signing. This money is prorated over the length of the contract and can be subject to
deferrals and default language.

Base Salary – This is the money paid to the player over the course of the regular season and is often referred to
as “paragraph 5” or “P5” money. This money is paid in equal installments over 17 weeks of the season.

Roster Bonus – Money given to a player in terms of a bonus for being on a team’s roster at a given time during
the League Year.

Workout Bonus – Money given to a player for participating in the team’s offseason workout program. In order to
earn a workout bonus the player is usually required to participate in at least 85% of the team’s offseason
workouts.

Incentives – the only incentives available in a Rookie Contract other than the Proven Performance Escalator are
playtime percentages defined as follows:
1st or 2nd Round Pick - an agreed upon percentage of at least 35% of the offensive/defensive plays during the
rookie season and at least 45% during any other season under the rookie contract.
3-7 Round Picks & Free Agents - Same as above except at least 15% of the plays during the rookie season
and at least 30% during any other season under the rookie contract.
All other incentives are PROHIBITED in rookie contracts.

Length – All rookie contracts now have a mandatory length of 4 years and all 1st round contracts have an
additional 5th year team option.

Proven Performance Escalator - a Non-Negotiable, Mandatory 4th year escalator only that is in all rookie
contracts for players drafted in rounds 3-7 of the NFL draft. It is prohibited in all 1st and 2nd round contracts
and undrafted rookie contracts. It states that an eligible player’s 4th year base salary can escalate TO the
value of the Restricted Free Agent Qualifying Offer for a Right of First Refusal Only IF player achieves ONE of
the following during the first 3 years of his Rookie Contract:
1. Participate in at least 35% of offensive/defensive plays in ANY two regular seasons; OR
2. Participate in a “cumulative average” of at least 35% of offensive/defensive plays during the first 3 regular
seasons of his Rookie Contract.