Rookie Salary.

“Rookie Salary” for a Drafted Rookie means the highest amount of earnable compensation for which such player and Club have contracted in each year of his Rookie Contract regardless of whether any or all amounts are earned or considered “likely to be earned” as set forth in Article 13, excluding only (A) the Fifth-Year Option Paragraph 5 Salary described in Section 7 below, (B) the amount by which the player’s Paragraph 5 Salary may increase pursuant to the Proven Performance Escalator as described in Section 4 below, (C) minimum offseason workout per diem as set forth in Article 21, and (D) compensation for community relations/sponsor appearances (subject to the maximum amounts permitted in Section 3(b)(iv) below).

“Rookie Salary” for an Undrafted Rookie means the highest amount of earnable compensation for which such player and Club have contracted in each year of his Rookie Contract that exceeds the then-applicable Minimum Active/Inactive Salary for each League Year of the contract regardless of whether any or all amounts are earned or considered “likely to be earned” as set forth in Article 13, excluding only (A) minimum offseason workout per diem, and (B) compensation for community relations/sponsor appearances (subject to the maximum amounts permitted in Section 3(b)(iv) below).

For the purposes of calculating Rookie Salary in each year of a player’s Rookie Contract, signing bonus and amounts treated as signing bonus will be prorated on a straight-line basis pursuant to Section 3(g) below. By way of example, a Drafted Rookie who has a $1,000,000 Paragraph 5 Salary, $250,000 in signing bonus proration and a $250,000 incentive for 95% offensive playtime in each of the first four years of his contract would have a Rookie Salary in each League Year equal to $1,500,000, and Rookie Salary over the contract’s entire term of $6,000,000, regardless of whether he earns any or all of the above amounts or whether any or all of the above amounts are considered “likely to be earned.”

Year-One Rookie Salary.

“Year-One Rookie Salary” for a Drafted Rookie means the highest amount of earnable compensation for which such player and Club have contracted in the first year of his Rookie Contract regardless of whether any or all amounts are earned or considered “likely to be earned” as set forth in Article 13, excluding only (A) minimum offseason workout per diem, and (B) compensation for community relations/sponsor appearances (subject to the maximum amounts permitted in Section 3(b)(iv) below).

“Year-One Rookie Salary” for an Undrafted Rookie means the highest amount of earnable compensation for which such player and Club have contracted in the first year of his Rookie Contract that exceeds the then-applicable Minimum Active/Inactive Salary for players with zero credited seasons regardless of whether any or all amounts are earned or considered “likely to be earned” as set forth in Article 13, excluding only (A) minimum offseason workout per diem, and (B) compensation for community relations/sponsor appearances (subject to the maximum amounts permitted in Section 3(b)(iv) below).

For the purpose of calculating Year-One Rookie Salary, signing bonus and amounts treated as signing bonus will be prorated on a straight-line basis pursuant to Section 3(g) below. By way of example, a Drafted Rookie who has a $1,000,000 Paragraph 5 Salary, $250,000 in signing bonus proration and a $250,000 incentive for 95% offensive playtime in his first season would have Year-One Rookie Salary in that League Year of $1,500,000 regardless of whether he earns any or all of the above amounts in his first season or whether any or all of the above amounts are considered “likely to be earned.”

Total Rookie Compensation Pool. “Total Rookie Compensation Pool” means the League-wide limit on the total amount of Rookie Salary for which all Clubs may contract with Drafted and Undrafted Rookies over the entire term of such Rookie Contracts. By way of example, a Drafted Rookie selected in the second round who signs a four-year contract with Rookie Salary of $1,000,000 in year one, $1,100,000 in year two, $1,200,000 in year three, and $1,300,000 in year four would have $4,600,000 count against the Total Rookie Compensation Pool.

Year-One Rookie Compensation Pool. “Year-One Rookie Compensation Pool” means the League-wide limit on the total amount of Year-One Rookie Salary for which all Clubs may contract with Drafted Rookies and Undrafted Rookies in the first year of such Rookie Contracts. By way of example, a Drafted Rookie selected in the second round who signs a four-year contract with Rookie Salary of $1,000,000 in year one, $1,100,000 in year two, $1,200,000 in year three, and $1,300,000 in year four would have $1,000,000 count against the Year-One Rookie Compensation Pool.

Total Rookie Allocation. “Total Rookie Allocation” means, for each Club, its proportional share of the Total Rookie Compensation Pool, calculated based upon the number, round and position of the Club’s selection choices in the Draft, plus the Undrafted Rookie Reservation (as defined in Subsection (i) below). The sum of the Total Rookie Allocations for all Clubs shall equal the Total Rookie Compensation Pool.

Year-One Rookie Allocation. “Year-One Rookie Allocation” means, for each Club, its proportional share of the Year-One Rookie Compensation Pool, calculated based upon the number, round and position of the Club’s selection choices in the Draft plus one-third of the Undrafted Rookie Reservation (as defined in Subsection (i) below). The sum of the Year-One Rookie Allocations for all Clubs shall equal the Year-One Rookie Compensation Pool.

Year-One Formula Allotment.

“Year-One Formula Allotment” means, for each Drafted Rookie, a fraction calculated based upon the player’s round and position in the Draft and expressed as a percentage of the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation).

The (A) sum of the Year-One Formula Allotments for all of a Club’s Drafted Rookies, multiplied by the Year-One Rookie Compensation Pool (excluding compensatory selections), plus (B) one-third of the Undrafted Rookie Reservation shall equal the Club’s Year-One Rookie Allocation.

The Year-One Formula Allotment attributed to each draft selection shall be agreed to by the NFL and the NFLPA, and shall be provided to all Clubs, Rookies, and agents of Rookies.

The Year-One Formula Allotments for each non-compensatory Draft selection shall be calculated using the following steps/methodology:

• First: Determine the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) for the prior League Year and deduct from that amount the cumulative minimum salaries for players with zero Credited Seasons on a Club’s Active/Inactive List (“Minimum Salaries”) for all 224 noncompensatory draft picks (the “Year-One Pool In Excess of Minimum Salaries”) (“YOPIEMS”)) (e.g., in 2018, the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation), was $220,390,000; deduct Minimum Salaries of $107,520,000 (224 non-compensatory draft picks × $480,000) to obtain the 2018 YOPIEMS of $112,870,000 ($220,390,000 - $107,520,000).
• Second: Calculate the YOPIEMS for the current League Year (e.g., in 2019, the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) was $232,741,000; deduct Minimum Salaries of $110,880,000 (224 non-compensatory draft picks × $495,000) to obtain the 2019 YOPIEMS of $121,861,000 ($232,741,000 - $110,880,000).
• Third: Compare the current year YOPIEMS to the YOPIEMS for the prior League Year to obtain the “Growth Percentage”) e.g., in 2019, ($121,861,000 ÷ $112,870,000) = 107.9658%).
• Fourth: For each non-compensatory Draft selection from the prior League Year, identify the amount of the Year-One Rookie Allocation in Excess of Minimum Salary (“YORAIEMS”) by subtracting the minimum salary for a player with zero Credited Seasons on a Club’s Active/Inactive List (“Minimum Salary”) from the Year-One Rookie Allocation for that selection;
• Fifth: Multiply the YORAIEMS for each non-compensatory Draft Selection in the prior League Year by the Growth Percentage (as defined above) to determine the current year YORAIEMS;
• Sixth: Add the current year Minimum Salary (e.g., $495,000 in 2019) to the current year YORAIEMS to obtain the current Year-One Rookie Allocation (“YORA”) for each Draft Selection;
• Seventh: Divide each Draft selection’s YORA by the current year Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) to obtain the current year Year-One Formula Allotment.

The Year-One Formula Allotment for any compensatory selection for the 2020–2030 League Year shall be the mid-point, rounded to the nearest dollar, of the immediately preceding and the immediately following non-compensatory selections (as calculated pursuant to Subsection (A) above), except that the Year-One Formula Allotment for any compensatory selection at the end of the seventh round shall be the same as the Year-One Formula Allotment for the last selection in the seventh round.

Year-One Minimum Allotment. “Year-One Minimum Allotment” means, for each Drafted Rookie, a fraction (or such other amount to which the parties may agree) that shall equal the selection’s absolute minimum share of the Year-One Rookie Compensation Pool, calculated based upon the player’s round and position in the Draft and expressed as a percentage of the Year-One Rookie Compensation Pool. The YearOne Minimum Allotment for (i) every selection in the first and second round of the Draft, and (ii) the first twenty-six selections in the third through seventh rounds of the Draft shall equal the Year-One Formula Allotment for the final non-compensatory selection in that round. The Year-One Minimum Allotment for the twenty-seventh through the final selection in the third through seventh rounds of the Draft (excluding any compensatory selections) shall equal (A) the Year-One Formula Allotment for the final non-compensatory selection in that round minus (B) $4,000 divided by the Year-One Rookie Compensation Pool. The Year-One Minimum Allotment for any compensatory selection in each round shall equal the average of (A) the Year-One Formula Allotment for the final non-compensatory selection in that round and (B) the Year-One Formula Allotment for first selection in the succeeding round, minus (C) $4,000 divided by the Year-One Rookie Compensation Pool. The Year-One Minimum Allotment for Compensatory Draft Selections shall be altered in a manner to be agreed upon by the parties if the position of compensatory selections within each round is changed.

Undrafted Rookie Reservation. For the 2020 League Year, the maximum amount per Club that may be paid to Undrafted Rookies as signing bonus or amounts treated as signing bonus (the “Undrafted Rookie Reservation”) shall increase over the maximum amount permitted for the 2019 League Year (i.e., $109,115) by the percentage increase of the Total Rookie Compensation Pool. For the 2021 League Year, a maximum of $160,000 per Club may be paid to Undrafted Rookies as signing bonus or amounts treated as signing bonus. For the 2022 League Year and each subsequent League Year, this amount shall increase by the percentage increase of the Total Rookie Compensation Pool. For purposes of this Subsection, Total Rookie Compensation Pool shall exclude any signing bonus (including any amounts treated as signing bonus) for an Undrafted Rookie (i.e., the Pool shall exclude any amounts included in the Undrafted Rookie Reservation) and shall be adjusted to account for any forfeited Draft selections or supplemental Draft selections pursuant to Subsections 5(b)(i)-(ii) and 2(a)(vi) of this Article.