QUESTIONS + BASICS OF THE NFL PLAYER
CONTRACT SYSTEM 2025 WITH COMPLETE
SOLUTIONS.
1 of 113
Term
In 2020, a player signs a new two-year deal with his club, which
includes a $500,000.00 signing bonus. In 2021, the player is unhappy
that he does not have an extension past the current season, and
elects to hold himself out of the start of training camp. He misses the
first seven days of camp before finally reporting. What amount of his
signing bonus, if any, must he forfeit (or repay)?
Give this one a try later!
, $2,950,000.00 Converting salary to bonus: You subtract the bonus from the 2015
P5 salary, then prorate over the final years of contract (in this case, divide by 2),
then add the previous bonus proration to get the new number. The formula
looks like this:(P5 salary - bonus) + (bonus/2yrs) + (previous prorated bonus) or
$2.2M ($3M - $800K) + $400K ($800K/2) + $350K = $2.95M
The average of the 3rd thru 20th highest salaries at his position This is part of
the new side letter between the NFL and NFLPA. The fifth-year option for a
first- round pick can now be: a) 2 Pro Bowls = Franchise tag; b) 1 Pro Bowl =
Transition tag; c) 75% play time cumulative average over first 3 seasons OR 2 of
3 seasons with 75% play time OR 50% play time all 3 seasons = average of 3rd
thru 20th highest salaries at his position; d) all others = average of 3rd thru
25th highest salaries at his position
$101,200.00 This was agreed to in a new side letter between the NFL and NFLPA.
You will be given this side letter in your packet or given an update when the
seminar begins. The new practice squad rules set a fixed salary for players who
are normally eligible for practice squad and, for 2021, a fixed salary for players
with unlimited accrued seasons. Starting in 2022, players with unlimited accrued
seasons can get paid within a lower and upper limit. All this will be given to you
in your source materials.
$40,000.00 If a player willfully fails to report and play, it results in a forfeit
of signing, roster, report and option bonuses. Missing 6 days requires the
player to forfeit 15% of his prorated bonus - in this case his prorated bonus
for 2019 is $250,000 x 15% = $37,500. Each additional day will forfeit an
additional 1% (up to 25% max) - in this case an additional $2500 for the 7th
day
Don't know?
2 of 113
Definition
A player receives an Accrued Season when they are on Full-Pay
status for 6 or more regular season games.
,***This excludes games on the Practice Squad, Physically Unable to
Perform-Non-Football Injury List (PUP-NFI), and/or Exempt
Commissioner Permission List.
Give this one a try later!
5TH-YEAR OPTION FOR 1ST-ROUND DRAFT PICKS (QUALIFIERS FOR 1ST 3
YEARS)
NO PRO BOWLS & <75% PARTICIPATION; OR CUMULATIVE AVG OF 75%
PARTICIPATION: OR PARTICIPATE IN A CUMULATIVE 50% OF PLAYS IN EACH OF
THE 3 YEARS
CREDITED SEASON
ACCRUED SEASON
5TH-YEAR OPTION FOR 1ST-ROUND DRAFT PICKS (QUALIFIERS FOR 1ST 3
YEARS)
NO PRO BOWLS, MIN. 75% PARTICIPATION; OR CUMULATIVE AVG OF 75%
PARTICIPATION: OR PARTICIPATE IN A CUMULATIVE 75% OF PLAYS IN EACH OF
THE 3 YEARS
Don't know?
3 of 113
Term
, RESTRICTED FREE AGENT (Qualifying Offers) ROFR & original draft
round
Give this one a try later!
2020 SALARY EXAMPLE - $1.5 2020 SALARY EXAMPLE -
million or 120% of previous year's $2.025 million or 110% of
salary previous year's salary
2020 SALARY EXAMPLE - $2.5 2020 SALARY EXAMPLE - $1.8
million or 105% of previous year's million or 115% of previous year's
salary salary
Don't know?
4 of 113
Definition
$30,000 Even though the salary for Player H in 2020 is $3,000,000,
Contract Advisor A only negotiated $1,000,000 of it. So Contract
Advisor A gets his 3% of $1,000,000. As a side note, Player H would
then pay Contract Advisor B 2% of the other $2,000,000
Give this one a try later!
Contract Advisor A signs Player H to a standard representation
agreement which provides for a fee to Contract Advisor A of 3%.
Contract Advisor A then negotiates a five-year contract for Player H,
starting with the 2016 season, which provides for a $1,000,000 salary each
year. After Year 2 of the contract, Player H fires Contract Advisor A and
signs with Contract Advisor
B. Contract Advisor B's Standard Representation Agreement with Player H