NFL Collective Bargaining Agreement

Article 12
Revenue Accounting and Calculation of the Salary Cap

Section 3(b)(iii)
Accounting Reports & Projections

(b)(iii)

No later than August 30 of each League Year, the Accountants shall prepare a Final Special Purpose Letter based on the final reporting packages from the League and the Clubs from the prior League Year, that shall set forth (A) the final calculation of actual AR for the prior League Year, (B) the final calculation of actual Benefits for the prior League Year, and (C) the League-Wide Cash Spending for the prior League Year. Following the method set forth in Section 6 below, any difference between: (1) the Salary Cap from the prior League Year as adjusted by any True-Up made after the Initial Special Purpose Letter pursuant to Subsection (ii) above; and (2) the Salary Cap that would have applied if the AR and Benefits from the Final Special Purpose Letter had been used as Projected AR and Projected Benefits when that Salary Cap was set, shall be a further “True-Up,” to be credited or deducted, as the case may be, in the calculation of the Salary Cap for the upcoming League Year using the method set forth in Section 6. Any such further True-Up shall include Interest. For the 2020 League Year only, Projected AR shall contain the NFL’s good faith estimate of $150 million for the revenues that will be generated by the addition of the two playoff games for the 2020 NFL season referenced in the letter dated March 3, 2020 between the NFL and the NFLPA on this subject. If, but only if, such additional playoff games are not added in 2020, then there will be no true-up for this projection.