NFL Collective Bargaining Agreement

Article 30
Termination Pay

Section 2
Regular Season Signings


The Termination Pay under this Article of any player who is terminated from a contract which was signed after the beginning of the regular season in which he is terminated shall be limited to an amount equal to the greater of: (i) the unpaid balance of the initial 35% of such player’s Paragraph 5 Salary; or (ii) two weeks’ salary up to a maximum of the Active/Inactive List Paragraph 5 Salary of a player with seven or more Credited Seasons as specified in Article 26, Section 1, notwithstanding the actual number of Credited Seasons the player has earned. For purposes of this 35% calculation only, the term “Paragraph 5 Salary” shall be defined as the proportionate remaining balance to be paid at the time such player is signed by the Club. (For example and without limitation, in a 16-game season, if a player is signed after the second week of the 2020 regular season to a Contract with a Paragraph 5 Salary of $850,000, his Paragraph 5 Salary for purposes of the 35% calculation shall be $750,000 or 15/17ths of $850,000.)