NFL Collective Bargaining Agreement

Article 13
Salary Cap Accounting Rules

Section 6(b)(v)(3)
Valuation of Player Contracts

Notwithstanding any provision in a Player Contract to the contrary or when such payments are actually made, the following rules shall apply in determining the amount of a player’s Salary that is to be included in Team Salary in a particular League Year for purposes of the Salary Cap:

(b)(v)(3)

If a Club provides such notice, then at 4:00 pm NYT on the Carry Over Measuring Date, there will be an additional charge to that Club’s current League Year Team Salary corresponding to the amount of Room it has designated to Carry Over to the next League Year. The Club will receive an equivalent credit to its Team Salary for the following League Year. (For example, and without limitation, if one week before its final regular season game a Club possessing $5 million in Room provides notice to the NFL of its intent to Carry Over $5 million in Room to the next League Year, and if at the conclusion of the Club’s final regular season game the Club has $4 million in Room, then the Club’s notice shall be automatically amended to reflect a $4 million designation. As a result, at 4:00 pm NYT on the Carry Over Measuring Date, the Club shall: (i) be charged $4 million to its current League Year Team Salary; (ii) have no Room for the remainder of the current League Year; and (iii) be credited $4 million to its Team Salary for the following League Year (i.e., increasing the Club’s Room in the following League Year). As another example, and without limitation, if one week before its final regular season game a Club possessing $5 million in Room provides notice to the NFL of its intent to Carry Over $5 million in Room to the next League Year, and if at the conclusion of the Club’s final regular season game the Club has $7 million in Room, then the Club’s notice shall not be amended and its designation shall remain $5 million. As a result, at 4:00 pm NYT on the Carry Over Measuring Date, the Club shall: (i) be charged $5 million to its current League Year Team Salary; (ii) have $2 million in Room; and (iii) be credited $5 million to its Team Salary for the following League Year. Alternatively, if the same Club had designated 100% of its Room to Carry Over (rather than $5 million), then it would instead: (i) be charged $7 million to its current League Year Team Salary; (ii) have no Room for the remainder of the current League Year; and (iii) be credited $7 million to its Team Salary for the following League Year.)