Free Agency & Salary Cap Terms Flashcards
NFL Player Contract
A written agreement or series of such agreements executed at or about the same time between a person and an NFL Club pursuant to which such person is employed by such Club as a professional football player
Collective Bargaining Agreement (CBA)
The union contract between the NFL Players Association and the NFL Management Council covering the terms and conditions of employment of all NFL players
Draft or College Draft
The NFL’s annual draft of Rookie football players (Article 6: College Draft)
Drafted Rookie
A person who is selected in the current League Year’s Draft or whose Draft rights are held, or continue to be held, consistent with this Agreement, by an NFL Club that selected the Rookie in a prior Draft
Required Tender
A Player Contract tender that a Club is required to make to a player pursuant to the CBA, either as a matter of right with respect to the player, or to receive Rights of First Refusal, Draft Choice Compensation and/or other rights with respect to the player, as specified in the CBA
Right of First Refusal
The right of an NFL Club, as described in CBA Article 9 (Veteran Free Agency) and 10 (Franchise and Transition Players) to retain the services of certain Veteran players by matching offers made to those players
Draft Choice Compensation
The right of any Club, as described in CBA Articles 9 (Veteran Free Agency) and Article 10 (Franchise and Transition Players) to receive draft pick(s) from any other Club
Exclusive Rights Player
A player whose contract expires at a time when he has less than 3 Accrued Seasons in the NFL cannot market his services to other clubs if his old club gives him a minimum salary tender, as described in CBA Article 8, on or before the last day of that League Year.
If the tender is provided, this player can only re-sign with his old club (unless tender is later withdrawn).
Restricted Free Agent
A player whose contract expires when he has earned 3 Accrued Seasons. If his old club provides him with a sufficient “Qualifying Offer”, as described in CBA Article 9, on or before that 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 choice the old club wants to receive.
For example, the Qualifying Offer to a player with 3 Accrued Seasons in 2023 for the Club to receive a second round draft choice and the Right of First Refusal in 2023 is $4,304,000. For the 2023 League Year, the Restricted Free Agent has until April 21, 2023, 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
Unrestricted Free Agent
As described in CBA Article 9, a player whose contract expires when he has earned at least 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 ONLY IF his old club has given him a written tender by the Monday following the last day of that year’s NFL Draft offering to re-sign him for an additional year at a 10% increase in.
If his prior club does NOT tender such player, then the player remains an Unrestricted Free Agent for the remainder of that League Year. An Unrestricted Free Agent will be restricted in signing elsewhere, UNLESS he is designated a Franchise or Transition player.
Franchise Player
Each club may designate 1 player who would otherwise be an Unrestricted Free Agent as a Franchise Player. The designation must be made within a 2 week period beginning on the 22nd day preceding the first day of the new League Year and will end at 4:00pm New York time on the 8th 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 10 of 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 2 first round choices from the offering team. If the player’s club extends the exclusive tender offer, the club retains exclusive rights to the player, and he cannot negotiate with other teams. Once signed by the player, the tender is FULLY guaranteed
Transition Player
A club can elect to use a Transition Player designation for 1 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 10 of 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 FULLY guaranteed
Credited Seasons
A Credited Season is any season in which a player is on one of the following lists for at LEAST three (3) regular season and postseason games:
Active List
Inactive List
Injured Reserve List (IR)
Physically Unable to Perform List (PUP)
Bye weeks do NOT count toward a player earning a Credited Season. A player will also earn a Credited Season if he is released injured and paid the equivalent of at least 3 game checks. Earning Credited Seasons entitles you to various benefits under the CBA. For example, a player who has earned 3 or more Credited Seasons in the NFL qualifies to receive the pension benefit.
(Keep in mind, the definition for Credited Seasons for Minimum Salary purposes differ. Refer to Article 26, Section 2)
Accrued Seasons
An Accrued Season is a season during which a player has been on full pay status (Active, Inactive, Injured Reserve, or Physically Unable to Perform due to a football related injury) for 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 the Practice squad for any of the 6 qualifying games will not earn an Accrued Season regardless of his pay status. Also, bye weeks do NOT count toward a player earning an Accrued Season.
Earning an Accrued Season entitles a player to advance through the fee agency system which governs a player’s negotiating rights once his contract has expired.
A player with 4 or more Accrued Seasons becomes an Unrestricted Free Agent once his contract expires (unless he is designated a Franchise or Transition Player). Also, a player with 3 Accrued Seasons when his contract expires becomes a Restricted Free Agent, assuming his Club makes the appropriate Qualifying Offer. A player with less than 3 Accrued Seasons when his contract expires becomes an Exclusive Rights Player, assuming his Club makes the appropriate tender.
Salary Cap
The absolute maximum amount of Salary that each Club may pay or be obligated to pay or provide its players at any time during a particular League Year, in accordance with the rules set forth in CBA Article 13: Salary Cap Accounting Rules)
All Revenues (AR)
All of the League and Team Revenues that are included within the definition of All Revenues, set forth in CBA Article 12
Team Salary
The team’s aggregate salary for salary cap purposes, as calculated in accordance with the rules set forth in CBA Article 13
Room
The extent to which a Team’s then-current Team Salary is less than the Salary Cap and/or the extent to which a Team’s Rookie Salary is less than the Year One Rookie Allocation (CBA Article 7)
Prorated Signing Bonuses
The manner in which a player’s signing bonus is prorated over the years covered by the contract for salary cap purposes, as set forth in CBA Article 13, section 6 (b)(i).
The MAXIMUM number of years to prorate a signing bonus is 5 years
Likely to be Earned Bonuses (LTBE)
Incentive bonuses included in Team Salary for Salary Cap purposes based on the player’s and/or team’s performance during the prior year, as set forth in CBA Article 13, Section 6(c) and accompanying charts
Not Likely to be Earned Bonuses (NLTBE)
Incentive bonuses NOT included in Team Salary for Salary Cap purposes based on the player’s and/or team’s performance during the prior year, as set forth in CBA Article 13, Section 6(c) and accompanying charts
Voidable Contract
Any contract year that a veteran player has the right to terminate based upon a contingency shall count as a contract year for purposes of proration until the contingency is fulfilled, at which time any amounts attributed to such year shall be accelerated and included immediately in Team Salary.
Any contract year that a veteran player has the right to terminate in his sole control will not count as a contract year for purposes of proration. To the extent that such acceleration puts the Team over its Salary Cap, the difference shall be deducted from its Salary Cap for the following year (Article 13, Section 6 (b)(ii)(4)
30% Rule (Veterans Rule)
No NFL Player Contract extending into 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 Article 13, Section 7 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
25% Rule for Rookies
No 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.
For example, if a player drafted in the 4th round of the 2023 draft signs a 4 year contract with a $80,000 signing bonus, a $750,000 Paragraph 5 Salary, and no performance incentives in his first season, the player’s Year One Rookie Salary will equal $950,000, i.e., the prorated portion of his signing bonus ($200,000) plus his Paragraph 5 Salary ($750,000). Accordingly, the player’s maximum annual increase in Rookie Salary may not exceed $237,500 ($950,000 x 25%)
