Posts Tagged ‘ NFL Salary Cap ’

NFL CBA Series: Rookie Contracts

Robert Griffin III, Andrew Luck, and Russell Wilson all made cases for NFL Rookie of the Year in 2012. Griffin III won the award.

Robert Griffin III, Andrew Luck, and Russell Wilson all made cases for NFL Rookie of the Year in 2012. Griffin III won the award.

In the past, there were all sorts of negotiating going on the end of the Draft and the start (sometimes deep into). Although there is still much to bargain over, the new CBA installed something similar to the Rookie Wage Scale in the NBA. Each of the up to 256 draft slots are given an allotment of the Total Rookie Compensation Pool.

The Player Contract for every drafted rookie is set at four years. All undrafted players will be signed to three-year terms (Art. 7 Sec 3, (a), 24). Continue reading

NFL CBA Series: Other Bonuses

 

English: New York Jets' cornerback Darrelle Revis

English: New York Jets’ cornerback Darrelle Revis (Photo credit: Wikipedia)

Though a player’s signing bonus is the most covered part of a player compensation package, a player can also earn other types of bonuses. Any bonus that is guaranteed for skill, cap, and injury is subject to proration rules like a signing bonus.

Roster Bonus

The roster bonus is another of the more publicized bonuses. The end of the Peyton Manning Era in Indianapolis came due to a $28 million roster bonus the Colts would have owed Manning had he still been on the team March 8, 2012. Continue reading

NFL CBA Series: Signing Bonus

The Lambeau Leap never felt so good.

The Lambeau Leap never felt so good.

A signing bonus one of most mainstream forms of player compensation. The term is often utilized in sports media when discussing new player contracts. A signing bonus is guaranteed (subject to some forfeiture provisions) and is often referred to as the only guaranteed money for NFL employees.

Signing bonuses are lump sums awarded to a player when he signs his contract.

Though a player does technically earns his this bonus right away, sometimes players will defer some of this money, receiving it in payments over time. Continue reading

NFL CBA Series: Dead Money and Acceleration

Manning-on-sideline-1

In order to speak on acceleration, I believe it necessary to first explain “dead money.” It is essentially cap space that a team has already been dedicated to a player (through bonus or guarantees).

Since all salary a player receives must eventually count against the cap, any salary a team has paid (or later fully guaranteed money) that has yet to count against the salary cap is dead money. It’s the League’s way of ensuring a team allocates the money it has spent to the cap. Otherwise, how would it truly be a hard-cap league? Continue reading