The
NFL Salary Cap – A Primer
·
The CBA
o
The CBA (Collective
Bargaining Agreement) is the document that lays out the system and rules under
which Players, Teams, and the League interact and operate.
o
The NFL
Management Council and the NFLPA (NFL Player’s Association) are the two
parties that negotiate the CBA, and 24 team owners and the NFLPA must agree to
the document.
o
The CBA, crucially,
specifies which revenue streams the players will receive a portion of, and how
large a portion, or percentage, of such revenue they will receive.
o
It also defines
the rules that govern player contracts, the salary cap, and free agency.
o
Included as well
are the rights players possess. For instance, players may file grievances
against their teams under the CBA, and the number of off-season workouts and
mini-camps coaches may hold is explicitly outlined and limited in the CBA as
well.
o
The CBA also mandates
player benefits, such as Group Insurance, Pension funding, Injury Protection, Travel/Moving/Meal
expenses, Per Diem Preseason money, Post-season pay, Severance pay, Performance-Based
pay, Minimum Salary Benefit pay, and Tuition Assistance pay.
o
Presently, 2011
is the Final Capped Year. 2012 and beyond is “uncapped”, so a new
extension of the CBA would be required by that time.
o
The CBA outlines
Termination Rights that allow the NFL or NFLPA to terminate the CBA prematurely
by giving notice on November 8th of either 2008 or 2009. In 2008, if
this is exercised: 2009 would be the Final Capped Year and 2010 would be
“uncapped” and the final year of the deal. In 2009, if this is exercised:
2010 would be the Final Capped Year and 2011 would be “uncapped”
and the final year of the deal.
o
Unless stated
otherwise, outlined below are the rules that govern a typical Capped Year (not
the final Capped year, for which there are special rules, or Uncapped years)
·
League Year
o
League Years
begin in early March.
o
For instance,
Free Agency was originally scheduled to commence March 3rd for the
2006 League Year. It was pushed back to March 11th.
·
The Salary Cap
o
For each League
Year the NFL sets a Salary Cap, as shown below:
|
League Year |
Salary Cap |
% Increase |
|
2007 |
$107.00 |
6.9% |
|
2006 |
$102.00 |
19.3% |
|
2005 |
$85.500 |
5.7% |
|
2004 |
$80.852 |
7.8% |
|
2003 |
$75.010 |
5.5% |
|
2002 |
$71.100 |
5.5% |
|
2001 |
$67.400 |
8.4% |
|
2000 |
$62.170 |
6.5% |
|
1999 |
$58.350 |
11.4% |
|
1998 |
$52.390 |
26.4% |
|
1997 |
$41.450 |
1.6% |
|
1996 |
$40.780 |
9.9% |
|
1995 |
$37.100 |
7.2% |
|
1994 |
$34.600 |
|
o
The Salary Cap
in 2006 and beyond is calculated based on how much Total Revenue (TR) and Total
Football Revenue (TFR) the NFL projects it will take in that year.
o
Precisely what
percentage of the NFL’s TR and TFR will be allocated for player salaries
and benefits is stated in the CBA and from 2006-2011 the percentage increases
every two years. The exact percentages are as follows:
o
(Please note that prior to 2006, the
percentages refer to Defined Gross Revenue, DGR, which was the revenue stream
used at that time to calculate the Salary Cap,)
|
League Year |
Salary Cap DGR
% |
Salary Cap
TR % |
Salary Cap
TFR Equivalents % |
|
1998-2001 |
63.0% (DGR) |
|
|
|
2002 |
63.5% (DGR) |
|
|
|
2003 |
64.25% (DGR) |
|
|
|
2004 |
64.75% (DGR) |
|
|
|
2005 |
65.5% (DGR) |
|
|
|
2006 |
|
57.0% |
61.89% |
|
2007 |
|
57.0% |
61.89% |
|
2008 |
|
57.5% |
62.42% |
|
2009 |
|
57.5% |
62.42% |
|
2010 |
|
58.0% |
62.95% |
|
2011 |
|
58.0% |
62.95% |
|
2012 |
|
Uncapped |
Uncapped |
o
Once the
appropriate percentage of revenues has been set aside for the players, the
projected cost of Player Benefits is removed.
o
The remaining
amount is then divided by 32 (as there are 32 NFL teams), and the resulting
quotient is the Salary Cap for that
League Year.
o
In equation form,
the Salary Cap for a particular year
is calculated as follows:
§
[(R * p% - B)/32] where R is the NFL’s Projected
TFR Revenue for that year; p is the percentage of revenue the players receive;
and B is the projected cost of player benefits;
o
In 2005, the Salary Cap was $85.5 million. DGR
totaled $5.125 billion. 65.5% of that revenue was allocated to players. $572
million went toward Player Benefits, with the balance divided among the 32
teams to yield the $85.5 million Cap.
o
In 2006, the Salary Cap ended up being $102 million
after the CBA extension was reached.
o
Where is that
money coming from? The two biggest components of the NFL’s revenue are:
T.V. Money (from the contracts broadcast networks agree to in exchange for the
right to cover NFL games; $600+million/year/network); and Gate Receipts
(tickets you and I buy to see our favorite team play).
·
The Salary Cap Announcement
o The Salary Cap
for both 2006 and 2007 was announced in March of 2006.
o Starting in 2008, the Salary Cap for a given year will be agreed upon two years prior.
For instance, the 2008 Salary Cap
will be agreed upon after the 2006 season.
o However, the Salary
Cap value originally agreed upon two years in advance can be adjusted, as
governed by the Cap Adjustment Mechanism (CAM).
·
Cap Adjustment
Mechanism
o
o The CBA outlines a “trigger” percentage of
Total Revenue (TR) for each capped League Year from 2006-2011. The TR trigger
percentages are as follows: 59.0% (2006-2007); 59.5% (2008-2009); 60%
(2010-2011).
o If payroll exceeds the trigger level in any League Year, the overage will be allocated
proportionally to those teams over
the trigger level.
o The allocation assigned to each team over the trigger
level will then be charged to their Salary
Cap evenly over the remaining Capped
Years of the CBA.
o To demonstrate, let’s hypothetically say
payroll exceeds the trigger percentage in 2007 and the Giants are a team that
is over the trigger level and their proportionate allocation of the overage is
$4 million. The $4 million would be charged to the Salary Cap of the Giants evenly over 2008-2011, meaning their Salary Cap in 2008 would be $1 million
lower ($4 million/4 years) than a team that did not exceed the trigger and so
on through 2011.
o On the other hand, if payroll is less than the trigger
level, then the amount by which payroll is less than the trigger percentage
will be credited to all 32 NFL teams evenly over the remaining Capped Years of the CBA.
o Credits (if payroll is lower than trigger) and
Charges (if payroll is higher than trigger) may have to be netted in the event
there is an overage one year and then an underage another year. In other words,
each team could receive a $1 million annual credit from 2007-2011 due to payroll
being less than the trigger in 2006, but then – as outlined above –
the Giants could face a charge of $1 million if they exceed the trigger in 2007.
As a result, in 2008 the Giants would have their $1 million credit offset by
the $1 million charge. Thus, the net effect on the Salary Cap of the Giants would be $0.
o In the event the CBA is terminated, as outlined
above, then credits and charges will not accelerate onto the Final
Capped Year.
·
Maximum Team
Salary
o Each of the 32 NFL teams has a unique Team Salary.
o The Salary Cap
is simply a “cap” or ceiling placed on each franchise’s Team Salary.
o From the start of the League Year (early March)
through the NFL season, a franchise’s Team Salary cannot exceed the league-mandated
Salary Cap.
o If a team is not under the Salary Cap by the deadline in March, then the team will not be
permitted to sign additional players and they will be given one week to comply.
If they remain over the Salary Cap
the N.F.L. will void the team’s most recent contracts or tenders until
the team is under.
o If a team is found guilty of circumventing the Salary Cap, the team may lose draft
picks or face other sanctions.
·
Minimum Team
Salary
o There also is a league-wide Minimum Team Salary, the level a club’s Team Salary must be at or above when the League Year ends. This
salary “floor” is rarely a practical issue that teams face.
o The NFL calculates Minimum Team Salary as 90% of a team’s Salary Cap 2007-2011 and 84% in 2006.
o At the end of each League Year no
franchise’s Team Salary may be
below the league-mandated Minimum Team
Salary.
o If a club’s Team Salary is below the minimum at the conclusion of the League
Year, then the amount by which it is below the minimum will be distributed to
players on the roster at the league’s discretion.
o What counts toward Team Salary during the Off-season
and Pre-season
o If Team Salary
must not exceed the Salary Cap once
the League Year begins the key question is, “What exactly is Team Salary?”
o To answer that question, let’s look at what
counts toward Team Salary between
the start of the League Year and the first day of the regular-season:
1. Player Contracts
2. Tenders
3. Dead Money
4. “Net Incentives” and the
“Adjusted” Salary Cap
5. Other
o Player
Contracts
§
All players who
have signed with a team have a Player
Contract.
§
The contract
calls for base salaries, bonuses, and incentives which help determine the
player’s Player Salary in a
given year. Every player under contract has a Player Salary and every Player
Salary counts toward Team Salary.
§
It should be
noted that Player Salary is not the
same as the player’s take-home income. A player’s actual earnings
may be more or less than their Player
Salary.
§
Also, since a
player’s salary, bonuses, and incentives will change from year-to-year, Player Salary changes from year-to-year.
§
Player Salary for a given year has three components:
1. Paragraph-Five Base Salary
2. Prorata Signing Bonus Money
3. Roster/Reporting/Workout/LTBE Amounts
§
Paragraph-Five Base Salary
·
Every player has
a Paragraph-Five Base Salary. The player’s base salary is the amount of
money the player will be paid, in equal increments, over the course of the
regular-season if the player remains on the team.
·
During the offseason/pre-season,
if a player’s Player Salary with
the base salary component included would rank among the 51 Highest Cap Values on
the team, then that player’s base salary counts toward Player Salary, and thus Team Salary
·
But if Player Salary with the base salary
component included would not rank among the 51st Highest Cap
Values on the team, then that player’s base salary does not count
toward Player Salary, and thus Team Salary.
·
Even if the
player’s base salary does not count for cap purposes, the player’s
contract is still valid and the player will be paid the salary if he remains on
the team.
|
Player’s Cap Value Rank |
Base Salary |
Contribution to Team Salary from Base
Salary |
|
1 |
$750,000 |
$750,000 |
|
2 |
$4.5 million |
$4.5 million |
|
3 |
$3.7 million |
$3.7 million |
|
51 |
$350,000 |
$305,000 |
|
52 |
$350,000 |
$0.0 |
|
53 |
$275,000 |
$0.0 |
§
Tenders and
Offer Sheets, in addition to Player Contracts, are included in the tabulation
of the 51 Highest Cap Values.
o
Prorata Signing Bonus Amounts
§
A signing bonus
that a player has received -- which prorated over the current League Year -- counts in a prorated amount toward Player Salary.
§
Signing bonuses
prorate equally over the remaining term of the player’s contract within
the limitations set out below. So if a player has three years remaining on his
contract, and receives a $3 million signing bonus, the signing bonus amount ($3
million) would prorate over the remaining term of the contract (3 years).
§
The proration
limits are as follows:
|
League Year |
Maximum Proration Length (years) |
Proration cannot extend beyond the
year: |
|
2006 |
5 |
2010 |
|
2007 |
6 |
2012 |
|
2008 |
6 |
2013 |
|
2009 |
6 |
2014 |
|
2010 |
6 |
2015 |
|
2011* |
5 |
2014 |
§
*If the CBA is terminated
prematurely, the 5-year proration limit scheduled for the current Final Capped Year, 2011, would then apply
to the new Final Capped Year, 2009
or 2010.
§
$3 million / 3 years
= $1 million / year. For cap purposes, $1 million of the bonus would count
toward Player Salary and Team Salary in each of the remaining
years of the player’s contract.
§
In the end, the
full $3 million amount of the bonus would count toward Player Salary and Team
Salary, but for cap purposes the impact of the bonus would be spread over
the remaining term of the contract, or three years. The player would receive
the full $3 million on one day in a lump sum, but for cap purposes the bonus
would count in a prorated amount in each of the player’s remaining years
under contract.
|
League Year |
Salary Cap Amortization of a $3
million signing bonus paid in 2005 to a player with three years remaining
under contract |
Real Life The distribution of
the actual monetary compensation the player would receive |
|
2005 |
$1 million |
$3 million |
|
2006 |
$1 million |
$0 million |
|
2006 |
$1 million |
$0 million |
|
Total: |
$3 million |
$3 million |
§
An option bonus
(often the “second-tier” of a two-tiered bonus given to high-priced
players) also prorates over the remaining term of the player’s contract
as soon as the option is exercised or as soon as the last year in which the
option may be exercised begins, whichever comes first.
§
In addition, other
amounts prorate. Guaranteed salary advances, guaranteed reporting bonuses,
guaranteed or paid buyout bonuses, and money paid or guaranteed for a contract
modification (like an extension or simple-restructure).
§
The advantage to
signing bonuses (and prorating amounts) is that, unlike base salary, they allow
a player to receive a payment in the current year without the full amount of
that payment counting toward Player
Salary and Team Salary in the
current year.
§
The downside is
that in every other remaining year of the contract, money the player is not set
to earn in actual income that year will count toward Player Salary and Team
Salary.
§
As you can see
in the table above, in 2006 the player will have $1 million count toward Player Salary as a result of the $3
million signing bonus even he earns $0.0 from the bonus in 2006. The upside is
that in 2005 the player was paid $3 million in actual income, but only had $1
million of that amount count for cap purposes.
§
Usually signing
bonus amounts prorate over the remaining term of the player’s contract,
but there are two exceptions to that. First, the CBA specifies amortization
limits. Currently, signing bonuses cannot prorate beyond 2009, regardless of a
player’s contract term. Second, if void language in a Player Contract allows a player to void
years based upon events in his sole control then those years will not count for
amortization purposes.
§
Some players
have received more than one signing bonus that has prorated over the current
year. As a result, the prorated amount of all the bonuses is summed to find the
aggregate Signing Bonus component of that player’s Player Salary.
o
Roster/Reporting/Workout Bonuses
§
The full
amount of non-guaranteed roster/reporting/workout bonuses count only in the
League Year in which the bonus can be earned. These bonuses do not prorate, and
they count toward Team Salary as
soon as the relevant League Year begins, even if the bonus may not be paid until
a later date in the year.
§
Non-guaranteed roster/reporting
bonuses are found in the contracts of some prominent players. They set an early
deadline for the team and player to come to agreement on new contract terms if
the team feels the player needs to renegotiate his contract. The team will want
to complete a renegotiation of the deal prior to the date of the non-guaranteed
bonus because once the bonus is earned and paid it is a sunk cost, whereas before
it is earned it can be cleared from Team
Salary in the event the player is released, since it is not a guaranteed
payment. The bonus might be due in March or April, early in the offseason.
o
LTBE Amounts
§
LTBE refers to
likely-to-be-earned performance incentives, money tied to attaining a
performance level. These amounts count in full toward Team Salary in a given year if they are
Likely to be Earned (LTBE) for that year.
o
The “Adjusted” Salary Cap
o The net impact of incentives from the prior
season is credited or charged to Team
Salary as the case may be.
o If a LTBE incentive from the immediately prior season
was not earned by the player then the team receives a credit on Team Salary in the amount of the LTBE
incentive. So if a team was charged $1 million on 2004 Team Salary for a LTBE incentive that called for a player to
run for a thousand yards and that player in the end did not run for a thousand
yards, then the team would receive a $1 million credit on 2005 Team Salary. This is because the team was charged in 2004 for
an incentive that was never actually earned, so to reconcile the team receives
a credit the following year.
o If a NLTBE incentive from the immediately prior
season was earned by the player then the team receives a charge on Team Salary in the amount of the NLTBE
incentive. Let’s say in 2004 a NLTBE incentive called for the team to pay
a player $1 million if that player ran for a thousand yards and that player in
the end did run a thousand yards. At the conclusion of the 2004 season, the
$1 million incentive would be applied against the 2004 Team Salary. If the team was only $250,000 under the cap limit
at the end of the season, then only $250,000 of the $1 million incentive could
be applied to 2004 Team Salary. The
remainder of the $1 million would be charged to 2005 Team Salary. $750,000, in this case, would count toward 2005 Team Salary. This is because the
incentive was not fully charged to 2004
Team Salary and thus to reconcile the team must be charged for the
incentive the following year.
|
Type: |
Year in which
Incentive can be earned: |
Following League Year: |
|
LTBE |
Charged |
If not
achieved: Credit |
|
NLTBE |
Not
Charged (until end of season) |
If
achieved: Charge |
o In short, Unearned-LTBE incentives from the prior
season lead to credits and Earned-NLTBE incentives lead to charges. Ultimately,
all the applicable incentives are netted and each team ends up with an
“Adjusted” Salary Cap.
o The 2005
Salary Cap was $85.5 million. But a team’s net incentives could lower
or raise the cap ceiling. If a team’s incentives net to -$2 million, then
that team’s cap ceiling is really $83.5 million, not $85.5 million. T
o The league-announced Salary Cap is really the “Base” or
“Unadjusted” Salary Cap. Each team, in fact, has an
“Adjusted” Salary Cap based upon the reconciliation of LTBE and
NLTBE incentives. So either a charge or credit attributable to the net impact
of incentives counts toward Team Salary.
o
Dead Money
o Acceleration
·
When a player is
released, any unamortized signing money attributable to the player accelerates.
·
Remember that a
signing bonus amortizes over the term of a player’s contract, as shown
below.
|
League Year |
Salary Cap Amortization of a $4
million signing bonus paid in 2005 to a player with three years remaining
under contract |
Real Life The distribution of
the actual monetary compensation the player would receive |
|
2005 |
$1 million |
$4 million |
|
2006 |
$1 million |
$0 million |
|
2007 |
$1 million |
$0 million |
|
2008 |
$1 million |
$0 million |
|
Total: |
$4 million |
$4 million |
·
If the player were
to be released in 2006, then the $1 million that was scheduled to be applied to
2007 Team Salary and the $1 million
that was scheduled to be applied to 2008
Team Salary would not remain amortized as they were. Instead, both amounts would
be combined and form an Acceleration charge.
·
If the player
were released on or before June 1 in 2006, then the acceleration charge would be applied to 2006 Team Salary.
·
If the player
were released after June 1 in 2006, then the acceleration charge would be
applied to 2007 Team Salary.
·
Special Post-June Release Rule: Each team can release up to two players each year prior
to June 2 and have that player’s release have the implications as a
post-June 1 release. The Player Salary,
or cap value, of the player will be carried on the club’s Team Salary until June 1. Then, in June
the player’s base salary and unearned roster/reporting/LTBE amounts will
come off the cap and acceleration will be charged to the following year Team Salary, just as though the player
were released in June. The benefit is that the team can be fair to up to two of
its players and release players before June, when the free agent market is more
active, and yet enjoy the cap implications of a post-June release.
·
For this rule,
the Player Salary of the selected
player will not reflect any renegotiation of the player’s contract that
occurred after the last regular-season game of the prior season. Let’s
say a player has a $5 million base salary and a cap value (Player Salary) of $8 million as of the last game of the 2005
regular-season. In March of 2006, the player agrees to lower his base salary to
$500,000, lowering his Player Salary to
$3.5 million. He is then released in March under this
rule. His team will carry him at $8 million, his cap value as of the
last-regular season game, not $3.5 million.
o Dead Money
·
If a player is
released before June, the “dead money” resulting from the move is
the sum of the acceleration charge, the prorata amortized signing bonus amount, and any paid
likely-to-be-earned amounts.
|
Pre-June Release – Impact on 2006 Team Salary |
|
|
Prorata Signing Bonus |
$1 million
(2006) |
|
Acceleration |
$2 million
(2007 and 2008) |
|
Paid LTBE amounts |
$0 |
|
Dead Money: |
$3 million |
·
As can be seen,
the total dead money (the charge the released player leaves behind on Team Salary) would be $3 million
·
If a player is
released after June, the “dead money” is spread over two seasons,
since the acceleration charge is applied to the following year.
|
|
Impact on 2006 Team
Salary |
Impact on 2007 Team
Salary |
Total |
|
|
Prorata Signing Bonus |
$1 million
(2006) |
Not applicable |
$1 million |
|
|
Acceleration |
Not applicable |
$2 million
(2007 and 2008) |
$2 million |
|
|
Paid LTBE amounts |
$0 |
Not applicable |
$0 |
|
|
Dead Money: |
$1 million |
$2 million |
$3 million |
|
·
Note that the
total amount of dead money, the total amount of acceleration, and the size of
the prorata amount remain the same. What changes in the case of a post-June
release is the distribution of those charges. In the end, the same amount of
dead money is applied to Team Salary.
o In-Season Releases: Termination Pay
·
A veteran with
four-plus credited seasons in the NFL who is on a team’s opening-day
roster has the right to receive Termination Pay for that year in the event he
is released by that team during that NFL season and is not subsequently picked
up on waivers.
·
A veteran once
(and not more than once) during his NFL career can exercise the Termination Pay
option and be paid his base salary even if released. The team that releases the
player would be responsible for the full amount of his base salary.
o
Other
o The Deion Rule
·
The Deion Rule (named
after Deion Sanders) is designed to inhibit teams from paying a player a huge
signing bonus and low base salaries. It applies to all contracts that stretch from
a Capped Year to an Uncapped Year except those executed in the Final Capped
Year (currently 2011).
·
First, the sum
of the player’s base salaries and roster/reporting bonuses in the Capped
Years (years in which the Salary Cap is in effect) is found. If less than three
Capped Years exist, then the first three years of the contract are used.
·
Then, the
portion of the player’s signing bonus that has been prorated into those
years is found.
·
If the signing
bonus prorated in those years is greater than the sum of the base salaries and
roster/reporting bonuses, then a Deion Charge will be applied.
·
The amount by
which the prorated signing bonus exceeds the base salary and roster/reporting
bonuses (the Difference) is allocated equally over the Capped Years of the
contract (or the first three years of the deal) as a charge on Team Salary (called a Deion Charge),
and the difference is then credited on Team
Salary equally over the Uncapped Years.
·
If the Difference
is $3 million, and there are three Capped Years and three Uncapped Years, then
$1 million would be charged in each Capped Year, and $1 million would be
credited in each Uncapped Year.
·
One exception
exists: the Difference cannot exceed 50% of the signing bonus money prorated in
the Uncapped Years. If the difference between prorated signing bonus and salary/roster/reporting
bonus in the Capped Years is $5 million, and 50% of the signing bonus prorated
in the Uncapped Years is $4 million, then only $4 million can be charged in the
Capped Years.
·
When totaling up
the signing bonus prorated in the Capped Years (or first three years of the
contract), ignore signing bonus money from a prior contract, such as a rookie
contract. Only the prorated portion of the signing bonus from the current
contract is at issue. However, when it comes to option bonuses, once exercised the
prorated portion of an option bonus is included, along with the signing bonus
proration, in the Deion Rule calculations.
·
For example, in
Year 1 a player receives a $5 million signing bonus which prorates over five
years when there are three Capped Years remaining. In Year 2, he receives a $4 million
option bonus which prorates over four years. In Year 1, the Deion Rule calculation
would include the proration of the $5 million signing bonus from Year 1 to Year
3 ($3 million).
·
In Year 1, if
the player’s salaries and roster/reporting bonuses from Year 1 to Year 3
were more than $3 million, there would be no Deion charges. In Year 2, the $4
million option is paid. New Deion calculations are conducted. The prorated
portion of the $4 million option bonus that will count in Year 2 and Year 3 is
now included ($2 million). That $2 million is added to the $3 million from the
signing bonus to determine a new prorated signing bonus amount of $5 million. In
Year 2, base salary and roster/reporting bonuses from Year 1 to Year 3 would
have to be more than $5 million, or else a Deion Charge would apply.
·
It is possible
that a player may sign a contract that includes a signing bonus, and that
signing bonus may not cause any Deion Charges. But the following year an option
bonus may
·
In effect, the
regular amortization of the signing bonus is altered so that more bonus money
counts in the Capped Years (or first three years) and less counts in the
Uncapped Years. More money isn’t charged on Team Salary, but there is a redistribution that front-loads the
bonus.
o Injury Settlements
·
If a player
suffers a football injury in a given year while under contract with an NFL
team, that team may face a grievance if they release the player while still
injured.
·
The team either
will keep the player on the roster or on Injured Reserve, or negotiate an injury settlement.
·
The amount of an
injury settlement will often be based on the length of time it is expected the
player will need to recover from the injury and the player’s scheduled
base salary. If the injury is expected to keep the player sidelined for four
weeks, the injury settlement may be in the amount of four weeks of that
player’s base salary.
·
It should be
noted that street free agents and undrafted rookie free agents may sign
contracts that contain split base
salaries. A rookie free agent might agree to a deal that pays the player
$230,000 if he stays healthy and makes the team or $135,000 if he injures
himself and the team decides to keep him on Injured Reserve.
o Grievances
·
If a player
files a grievance against a team, 50% of the amount claimed counts toward Team Salary until the dispute is
settled or the League Year ends, whichever occurs first. An exception is that if
the player filing the grievance is playing under a “Minimum Salary
Benefit” contract, 50% of the player’s Cap Value, prorated over the
remaining number of weeks in the season, will count toward Team Salary instead of 50% of the claim.
·
If any award is made
for a grievance, and the award is greater than the 50% attribution, the difference
between the two values will be added to Team
Salary when the award is paid.
·
If any award is
made for a grievance and the award is less than the 50% attribution, the
difference between the two values will be subtracted from Team Salary when the award is issued.
·
If at the end of
the year, the total amount of the awards paid exceeds the 50% attributions and
puts the team over the Salary Cap, the
difference will be added to Team Salary in
the following year. If at the end of the year, the total amount of awards paid
is less than the 50% attributions and the team finishes the year at the Salary Cap or below the cap by less
than the amount of the un-awarded attributions, then the difference will be deducted
from Team Salary in the following
year.
·
What counts Team
Salary during the NFL Football Season
o During the NFL season, additional money counts toward
Team Salary
o The 53-man
Roster
o The Cap Value of every player on the 53-man roster
counts toward Team Salary. That
includes every player’s P5, plus all prorata signing bonus and LTBE
amounts.
o The Practice
Squad
o Each player on the five-man Practice Squad will be
paid, at the minimum, as follows:
|
League
Years |
Minimum Weekly
Pay |
|
2003-2004 |
$4,350 |
|
2005-2007 |
$4,700 |
§
The full amount
of regular-season payments to Practice Squad players count toward Team Salary.
§
Post-season pay
does not count toward Team Salary.
An exception would occur if a player signed or renegotiated a Practice
Squad contract after December 1 that called for more than the minimum Practice
Squad salary. In that rare case, the player’s post-season salary would
count toward Team Salary.
o
Reserve Injured List
§
The Cap Values
of players on the Reserve Injured list count toward Team Salary.
o
Reserve Physically Unable to Perform List
§
The salary of players
on the Physically Unable to Perform list counts toward Team Salary.
§
The only
exception would be if a player is the final year of his contract and remains
unable to perform as of the sixth game of the regular-season. In that case, the
player’s salary would be tolled and not count toward Team Salary.
o
Non-Football Injury/Illness List
§
The contract of
any player on the Non-Football Football Injury/Illness List would be tolled,
and thus would not count toward Team
Salary.
§
The only
exception is at the club’s discretion and relates to players in the final
year of their contract. If such a player is physically unable to perform on or
before the sixth regular-season game, then in order to toll the player’s
contract the team must pay the player the prorated portion of his P5 for the
balance of the season.
o
Termination Pay
§
The P5 of
certain veteran players who are released during the season may be guaranteed,
and the balance of the P5 may count toward Team
Salary
o
The “Adjusted” Salary Cap, Dead Money, and
Grievances
§
The charge or credit
from incentives continues to impact Team
Salary
§
Any and all Dead
Money accumulated counts toward Team
Salary
§
Any and all awards
or attributions for grievances count toward Team Salary
·
Other Salary Cap
Topics
o Minimum Base Salaries
|
Credited
Seasons |
2006 |
2007 |
2008 |
2009 |
2011 |
|
0 |
$275,000 |
$285,000 |
$295,000 |
$305,000 |
$315,000 |
|
1 |
$350,000 |
$360,000 |
$370,000 |
$380,000 |
$390,000 |
|
2 |
$425,000 |
$435,000 |
$445,000 |
$455,000 |
$465,000 |
|
3 |
$500,000 |
$510,000 |
$520,000 |
$530,000 |
$540,000 |
|
4-6 |
$585,000 |
$595,000 |
$605,000 |
$615,00 |
$625,000 |
|
7-9 |
$710,000 |
$720,000 |
$730,000 |
$740,000 |
$750,000 |
|
10+ |
$810,000 |
$820,000 |
$830,000 |
$840,000 |
$850,000 |
§
If a contract
signed prior to the CBA extension reached in 2006 called for base salaries
below the values listed above, then the player’s base salary will be
increased to the level of the minimum.
§
Credited Seasons: a player earns a credited season for each season during which he was
on, or should have been on, full pay status for three or more regular-season
games not including games where the player was on IR, the Practice Squad, or
Non-Football-Injury PUP list.
o Contract Length Restriction for Drafted players
§
The CBA limits
the maximum length of the contracts clubs can give draft selections as follows:
|
Draft Picks |
Maximum
Length (years) |
|
1-16 |
6 |
|
17-32 |
5 |
|
33 and above (e.g. 2nd
round and lower) |
4 |
