Revenue Accounting and Calculation of the Salary Cap
Section 8Guaranteed League-Wide Cash Spending
For each of the following multi-League-Year periods 2017–2020 (four League Years) 2021–2023 (three League Years), 2024–2026 (three League Years), and 2027–2030 (four League Years), there shall be Guaranteed League-Wide Cash Spending of 95% of the Salary Caps for such League Years for each such period multiplied by the number of Clubs in the League during each such period. (Appropriate adjustments will be made if the number of Clubs in the League increases during each such a period.) (For example, if the Salary Caps for the 2024–2026 League Years were $180, 3200, and 220 million, respectively, the Guaranteed League-Wide Cash Spending over that four-year period would be $ 18.24 billion (95% of $600 million total Caps times 32 Clubs)).
Cash Spending in a League Year shall consist of the sum of: (1) total Paragraph 5 Salary amounts earned or paid or committed to be paid to players; (2) signing bonus amounts earned or paid or committed to be paid to players (including amounts treated as signing bonus) without regard to proration and applying the valuation rules that apply to deferred Salary specified in Article 13, Subsections 6(a)(ii) and 6(d)(iii); and (3) any other non-Benefit amounts earned or paid or committed to be paid to players in that League Year (applying the valuation rules that apply to deferred Salary specified in Article 13, Subsections 6(a)(ii) and 6(d)(iv)) including, but not limited to, incentives, roster bonuses, reporting bonuses, offseason workout bonuses, weight bonuses, grievances settled, grievance awards, injury settlements or Paragraph 5 Salary advances. League-Wide Cash Spending shall consist of the aggregate of all Cash Spending in a League Year. Team Cash Spending, for each respective Club, shall consist of all Cash Spending by such Club.
Any shortfall in the League-Wide Cash Spending at the end of a period in which it applies (e.g., at the end of the 2020, 2023, 2026, or 2030 League Years) shall be paid on or before the first September 15 after the end of such League Year directly to the players who were on a Club roster at any time during the season(s), pursuant to reasonable allocation instructions of the NFLPA. Any shortfall shall be reduced by any Minimum Team Cash Spending shortfall payments made for such League Years pursuant to Section 9 below.