NFL PLAYER CONTRACT PRIMER

MARK LEVIN
Director, Salary Cap & Agent Administration
NFL Players Association
WHAT IS THE SALARY CAP?
• The Salary Cap is the total amount of
money each Club may spend on
salaries and benefits in any given year.
• Two components to the Cap:
 Benefits
 Salaries
WHAT IS THE SALARY CAP?
• The benefit portion is an equal and
fixed amount per Club.

• Benefits Include:
– Injury Protection
– Severance Pay
– Workers Comp
– Post-Season Money
COMPONENTS OF A PLAYER
CONTRACT
• Base Salary (Paragraph 5)
• Signing Bonus
• Option Bonus
• Roster Bonus
• Reporting Bonus
• Workout Bonus
• Incentives
• Guarantees
 COMPONENTS OF A
PLAYER CONTRACT
• Base Salary (Paragraph 5)
– Earned 1/17th per week of season
– Not guaranteed unless specifically provided
– Vested vets guaranteed if on roster 1st game
– Lower salary when on IR (split)
 COMPONENTS OF A
PLAYER CONTRACT
• Signing Bonus/Option Bonus
– Paid to player upon signing or for Club
exercise of future option year(s)
– Deferrals negotiable
– Guaranteed (CBA forfeitures on signing
bonuses only)
– Prorated equally over max number of years
allowed (5 in 2009)
 COMPONENTS OF A
PLAYER CONTRACT
• Roster Bonuses
– On roster certain point in time (off-season/regular
season) or for certain number of games (53 vs. 45)
– Not guaranteed (unless specifically provided)
– Paid when earned
 COMPONENTS OF A
PLAYER CONTRACT
• Reporting Bonuses
– Training Camp (late July)
– Not guaranteed (unless specifically
provided)
– Paid when earned
 COMPONENTS OF A
PLAYER CONTRACT
• Workout Bonuses
– CBA Minimum ($130.00 per day in 09)
– Off-Season (max 14 weeks)
– Paid as earned weekly or lump sum at
end of program
– Not guaranteed (unless specifically
provided
 COMPONENTS OF A
PLAYER CONTRACT
• Incentives
– Team/Individual Performance
– Not common in rookie contracts outside of
rounds 1 & 2
– Typically paid by start of next League Year
(March 1)
– Last capped year rules
 2009-11 MINIMUM SALARIES
CS 09 10* 11*
0 310 320 330
1 385 395 405
2 460 470 480
3 535 545 555
4-6 620 630 640
7-9 745 755 765
10+ 845 855 865

*Reduced when CBA was terminated early

 WHEN DO PLAYERS SIGN?
• Unrestricted Free Agents
– Usually first three weeks of March
– Few after draft

• Restricted Free Agents

– Offer Sheets until week before draft
– Only 5-10 per year
 WHEN DO PLAYERS SIGN?
• Draft
– More than 75% between July 4th and
Training Camp

• Undrafted Rookies
– More than 90% within first week after
draft; most the night draft ends
 FUTURE PLANNING
•2009 Draft
•Max 5% increase in Rookie
Pool
•Actual increases will vary by
round
•Contract length limits
•Picks 1-16 = 6 years
maximum
•Picks 16-32 = 5 years
 FUTURE PLANNING
•2009 Draft
•All others = 4 years
maximum
•Complicated CBA rules for top
picks with 2010 uncapped
 WHAT TO WATCH FOR?
• Agent/Recruiter Misconduct

• Previous Financial Planner Misconduct