Page 25 - a3 Brochure Flip

CONTRACTS

NFL Contracts 101

TERMS AND DEFINITIONS

5th Year Player Option for First Round Contracts:
1. Mandatory in ALL first round contracts;
2. Club has right to exercise option after the last game of the player’s third regular season but prior to May 3rd.
3. If drafted in the top 10 picks the player’s 5th year base salary will be equal to the average of the top 10 highest
paid players his primary position during his fourth NFL season.
4. If drafted picks 11-32 the player’s 5th year base salary will be equal to the average of the 3rd-25th highest paid
players at his primary position during his fourth NFL season.
5. The 5th year option becomes guaranteed for INJURY only when it is exercised and becomes fully guaranteed if
player is on the roster on the first day of his 5th league year.

Total Rookie Allocation - Each team’s proportional share of the Total Rookie Compensation Pool described above.
This number is calculated based on the quantity, round and position of the team’s draft choices.

Year-One Rookie Allotment - each draft slot’s share of the team’s Year-One Rookie Allocation. Simply put - this is
what the draft pick is worth in the first year of the Rookie Contract.

Base Value – Total amount of the contract NOT including possible incentives. (often referred to as the “Front Side”
or the “Hard Dollars” of a contract)
Total Value – Total amount of the contract including ALL incentives.

Average Per Year (“APY”) – Base value of the contract divided by the length of the contract.

Option Bonus – Now prohibited in all rookie contracts, many NFL teams use the option bonus as another form of
guaranteeing money to a player. It allows the club to either “purchase” another year of the contract OR if not,
guarantee the same dollar amount of the option throughout the players base salaries.

Rookie Salary - for a drafted player means the highest amount of earnable compensation in each year of his
Rookie Contract. (including incentives, if any).

Year-One Rookie Salary - For a drafted player means the highest amount of earnable compensation in the first
year of his Rookie Contract. (including incentives, if any).

Total Rookie Compensation Pool - The new league wide limit on the total amount of Rookie Salary that all clubs
combined can spend over the entire length of the Rookie Contracts. (i.e. The total amount of all rookie contracts in
the NFL cannot exceed this number in a given year);

Year-One Rookie Compensation Pool - this term essentially replaces the old “Rookie Pool” term. It is the new
league wide limit on the total amount of Rookie Salary that all clubs combined can spend in the first year of Rookie
Contract. (i.e. The total amount of all first year rookie salary in rookie contracts cannot exceed this number for the
given year);

Year-One Rookie Allocation - Each team’s proportional share of the Year-One Rookie Compensation Pool
described above. This number is also calculated based on the quantity, round and position of the team’s draft
choices.

Year-One Minimum Allotment - the minimum share of the team’s Year-One Rookie Allocation. This is the absolute
minimum a draft pick can be worth in the first year of the Rookie Contract.