Article 28Performance-Based Pool
Creation Of Fund: In each League Year, the NFL shall create a fund known as the Performance Based Pool that will be deducted from the calculation of the Salary Cap in the same manner as any other Player Benefit.
Section 2. Amount of Fund
For the 2020 League Year, the fund shall be $8.5 million per Club. For the 2021 League Year, the fund shall be $10 million per Club. For each League Year after the 2021 League Year, the fund will be adjusted by the change in Projected AR, with a maximum change of 5%, unless otherwise agreed by the parties. If in the 2021 League Year the Performance-Based Pool (i.e., $10 million per Club) is reduced by up to $1.5 million per Club to fund the cost of the Additional Game Check for the 2021 League Year, as provided in Article 26, Section 1(c) of this Agreement, the 2022 Performance Based Pool shall be $10 million per Club adjusted by the change in Projected AR for the 2022 League Year, up to a maximum change of 5%, unless otherwise agreed by the parties. The NFLPA has the unilateral right to reduce or freeze the amount of the Performance Based Pool. The amount of the fund shall be deemed inclusive of any Veteran Player performance-based compensation pool amounts. Therefore, this section supersedes Section 1 and Exhibit A of the parties’ side letter dated March 9, 2016 (“2016 Salary Cap and Related Issues”).
Section 3. Mandatory Distribution Each Year
There shall be mandatory distribution to players of the entire fund each League Year. Distributions will be made in April, May, June, and July of the following League Year, except in the Final League Year, when distributions will be made in March of 2031.
Section 4. Qualifying Players
A player shall be eligible for participation in the Performance Based Pool for a League Year if he plays for at least one down in any regular season game. A player may receive multiple distributions if he qualifies for more than one Club in a single League Year.
Section 5. Methodology(a)
Each player’s “Playtime Percentage” shall be calculated by (i) adding the player’s total plays on offense or defense, as appropriate, plus special teams and (ii) dividing that number by the total plays of the player on the team’s roster with the most combined plays on offense, defense, and special teams for that Club;(b)
Each player’s “PBP Compensation” shall be calculated by adding his full regular season Paragraph 5 Salary, prorated signing bonus for the current League Year (plus any signing bonus acceleration (without regard to the June 1 rule) due to his having been released or traded during the applicable League Year, unless the player is re-signed by his old Club without having missed a week of the regular season), earned incentives, and other compensation for the current League Year, subject to the following provisions:(b)(i)
For all players, the full regular season Paragraph 5 Salary shall be used;(b)(ii)
For players who were released or traded and later signed by the same Club during the regular season, the Paragraph 5 Salary from the player’s initial contract shall be used for the period ending with the player’s release, and the Paragraph 5 Salary from the player’s subsequent contract shall be used for the period from release through the term of the subsequent contract;(b)(iii)
If a Player Contract is renegotiated after the Monday of the tenth week of the regular season to include an unearned incentive for the current League Year that is treated as signing bonus, such incentive shall not be counted in the calculation of the PBP Compensation; and(b)(iv)
If a portion of the player’s Paragraph 5 Salary is treated as signing bonus, the full Paragraph 5 Salary (rather than the current year’s proration) will be counted; all other amounts treated as signing bonus will be included on a prorated basis except for unearned incentives, as described in Subsection (iv) above.(b)(v)
If a player earns PBP Compensation (as calculated in Subsection (b) above) from more than one Club in the same League Year, the player’s PBP Compensation for that season shall equal the cumulative amount of all such earned compensation, with the result that the denominator described in Subsection (c) below (i.e., “PBP Compensation” shall be identical for each Club. By way of example, if the player earns $4 million with Club A and $2 million with Club B, the player’s PBP Compensation (the denominator in Subsection (c) below) shall equal $6 million for both Club A and Club B.(b)(vi)
For any player with a stated Paragraph 5 Salary of less than the Minimum Salary of a player with seven or more Credited Seasons on a Club’s Active/Inactive List for that League Year, the player’s Paragraph Salary will be deemed to be equal to the Minimum Salary of a player with seven or more Credited Seasons on a Club’s Active/Inactive List for that League Year. Notwithstanding anything in this Article, the imputation of Paragraph 5 Salary shall not affect in any way the actual Paragraph 5 Salary earnable by or payable to the player as stated in Paragraph 5 of the player’s NFL Player Contract.(c)
Each player’s “PBP Index” shall be calculated by dividing the player’s Playtime Percentage by his PBP Compensation;(d)
Each player shall receive an allocation from the fund determined by (i) dividing his PBP Index by the sum of the PBP Indices for each player on the Club and then (ii) multiplying that percentage by the Club’s total PBP allocation.(e)
For PBP purposes, a play is counted towards playtime percentage if the play runs to completion, regardless if the play was nullified by a penalty (e.g., a play that is blown dead by a penalty, due to a false start or encroachment penalties, etc. do not count in this calculation). A play is defined by the personnel on the field. A fake punt or field goal is considered a Special Teams play, and a 2-point conversion attempt is considered an offensive/defensive play.
Section 6. Corrections
If, after the fund has been distributed to players for any given League Year, a player demonstrates that his payment was miscalculated and should have been greater, he shall promptly be paid the additional Performance-Based Pay to which he is entitled, and said amount shall be deducted from the Club’s actual PBP allocation for the following League Year. In the Final League Year, any such amount shall be taken from any unused Benefit money or credited toward future Performance-Based Pay.