SOLUTIONS GRADED A+
✔✔Room - ✔✔The extent to which a Team's then-current Team Salary is less than the
Salary Cap (as described in CBA Article 13) and/or the extent to which a Team's Rookie
Salary is less than the Year-One Rookie Allocation (as described in 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 (Salary Cap Accounting Rules) Section 6(b)(i). The maximum number of
years to prorate a signing bonus is five (5).
✔✔Likely to be Earned (LTBE) Bonuses - ✔✔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 (NLTBE) Bonuses - ✔✔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 (CBA Article 13, Section 6(b)(ii)(4)).
✔✔30% Rule (Veterans only) - ✔✔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
CBA 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 fourth
round signs a four-year contract with a $400,000 signing bonus, a $660,000 Paragraph
5 salary, and no performance incentives in his first season, the player's Year-One
Rookie Salary will equal $760,000, i.e., the prorated portion of his signing bonus
, ($100,000) plus his Paragraph 5 Salary ($660,000). Accordingly, the player's maximum
annual increase in Rookie Salary may not exceed $190,000 ($760,000 x 25%).
✔✔Rookie Salary - ✔✔For a Drafted Rookie means the highest amount of earnable
compensation for which such player and Club have contracted in each year of his
Rookie Contract regardless of whether any or all amounts are earned or considered
"likely to be earned" as set forth in Article 13, excluding only (A) the Fifth-Year Option
Paragraph 5 Salary described in Article 7, Section 7 of the CBA, (B) the amount by
which the player's Paragraph 5 Salary may increase pursuant to the Proven
Performance Escalator as described in Section 4, (C) minimum offseason workout per
diem as set forth in Article 21, and (D) compensation for community relations/sponsor
appearances (subject to the maximum amounts permitted in Article 7, Section 3(b)(iv)).
For an Undrafted Rookie means the highest amount of earnable compensation for
which such player and Club have contracted in each year of his Rookie Contract that
exceeds the then-applicable Minimum Active/Inactive Salary for each League Year of
the contract regardless of whether any or all amounts are earned or considered "likely to
be earned" as set forth in Article 13, excluding only (A) minimum offseason workout per
diem, and (B) compensation for community relations/sponsor appearances (subject to
the maximum amounts permitted in Article 7, Section 3(b)(iv)).
✔✔Year-One Rookie Salary - ✔✔For a Drafted Rookie means the highest amount of
earnable compensation for which such player and Club have contracted in the first year
of his Rookie Contract regardless of whether any or all amounts are earned or
considered "likely to be earned" as set forth in Article 13, excluding only (A) minimum
offseason workout per diem, and (B) compensation for community relations/sponsor
appearances (subject to the maximum amounts permitted in Article 7, Section 3(b)(iv)).
For an Undrafted Rookie means the highest amount of earnable compensation for
which such player and Club have contracted in the first year of his Rookie Contract that
exceeds the then-applicable Minimum Active/Inactive Salary for players with zero
credited seasons regardless of whether any or all amounts are earned or considered
"likely to be earned" as set forth in Article 13, excluding only (A) minimum offseason
workout per diem, and (B) compensation for community relations/sponsor appearances
(subject to the maximum amounts permitted in Article 7, Section 3(b)(iv)).
✔✔Total Rookie Compensation Pool - ✔✔The League-wide limit on the total amount of
Rookie Salary for which all Clubs may contract with Drafted and Undrafted Rookies over
the entire term of such Rookie Contracts. By way of example, a Drafted Rookie selected
in the second round who signs a four-year contract with Rookie Salary of $1,000,000 in
year one, $1,100,000 in year two, $1,200,000 in year three, and $1,300,000 in year four
would have $4,600,000 count against the Total Rookie Compensation Pool.
✔✔Year-One Rookie Compensation Pool - ✔✔The League-wide limit on the total
amount of Year-One Rookie Salary for which all Clubs may contract with Drafted
Rookies and Undrafted Rookies in the first year of such Rookie Contracts. By way of
example, a Drafted Rookie selected in the second round who signs a four-year contract
with Rookie Salary of $1,000,000 in year one, $1,100,000 in year two, $1,200,000 in