NFL Collective Bargaining Agreement

Article 7
Rookie Compensation and Rookie Compensation Pool

Section 4
Proven Performance Escalator

(a)

Subject to the phase-in rules and restrictions set forth in Subsection 4(c) below, the Proven Performance Escalator is mandatory for Rookies drafted in the second through seventh rounds. Rookies drafted in the first round and Undrafted Rookies are not eligible to earn the Proven Performance Escalator.

(b)

The Proven Performance Escalator is a three-level (“Level One”, “Level Two”, and “Level Three”) non-negotiable amount by which an eligible player’s year-four Paragraph 5 Salary may escalate provided the player achieves the applicable qualifier set forth in Subsection (d) below. An eligible player who would otherwise qualify for more than one of the Level One, Level Two, and Level Three escalators shall receive only the highest such escalator. No player may receive more than one escalator. The Proven Performance Escalator shall be deemed a part of every Rookie Contract of a player selected in the second through seventh rounds by virtue of this Agreement and may not be separately attached to such Rookie Contract.

(c)

Notwithstanding anything to the contrary in this Article and for the avoidance of doubt, the Proven Performance Escalator, as defined in Subsection 4(b) above, shall be subject to the following phase-in rules and restrictions:

(c)(i)

The Level One, Level Two and Level Three Proven Performance Escalators for Rookies drafted in the second round shall begin to apply to players who were selected in the 2018 Draft, such that any escalation of the player’s Paragraph 5 Salary shall occur in the 2021 League Year. Players who were selected in the second round of any Draft prior to the 2018 Draft are not eligible to earn the Level One, Level Two or Level Three Escalators.

(c)(ii)

The Level One Proven Performance Escalator for Rookies drafted in the third through seventh rounds shall begin to apply to players who were selected in the 2017 Draft, such that any escalation of the player’s Paragraph 5 Salary shall occur in the 2020 League Year.

(c)(iii)

The Level Two and Level Three Proven Performance Escalators for players selected in the third through seventh rounds shall begin to apply to players who were selected in the 2018 Draft, such that any escalation of the player’s Paragraph 5 Salary shall occur in the 2021 League Year. Players who were selected in the third through seventh rounds of any Draft prior to the 2018 Draft are not eligible to earn the Level Two or Level Three Escalators.

(d)

Qualifiers.

(d)(i)

An eligible player selected in the second round will qualify for the Level One Proven Performance Escalator in his fourth League Year if: (1) he participated in a minimum of 60% of his Club’s offensive or defensive plays in any two of his first three regular seasons; or (2) he participated in a “cumulative average” of at least 60% of his Club’s offensive or defensive plays over his first three regular seasons (“Cumulative average” means the sum of the total number of offensive or defensive plays in which the player participated over the applicable seasons, divided by the sum of the Club’s offensive or defensive plays during the same seasons. By way of example, if a player participates in 450 of the Club’s 1,000 offensive plays in his first season, 650 of the Club’s 1,000 plays in his second season, and 700 of the Club’s 1,000 plays in his third season for a total of 1,800 plays out of a possible 3,000, the cumulative average would equal 60%).

(d)(ii)

An eligible player selected in the third through seventh rounds will qualify for the Level One Proven Performance Escalator in his fourth League Year if: (1) he participated in a minimum of 35% of his Club’s offensive or defensive plays in any two of his first three regular seasons; or (2) he participated in a “cumulative average” of at least 35% of his Club’s offensive or defensive plays over his first three regular seasons. “Cumulative average” means the sum of the total number of offensive or defensive plays in which the player participated over the applicable seasons, divided by the sum of the Club’s offensive or defensive plays during the same seasons. By way of example, if a player participates in 250 of the Club’s 1,000 offensive plays in his first season, 350 of the Club’s 1,000 plays in his second season, and 450 of the Club’s 1,000 plays in his third season for a total of 1,050 plays out of a possible 3,000, the cumulative average would equal 35%.

(d)(iii)

An eligible player selected in the second through seventh rounds will qualify for the Level Two Proven Performance Escalator in his fourth League Year if he participated in a minimum of 55% of his Club’s offensive or defensive players in each of his first three regular seasons.

(d)(iv)

An eligible player selected in the second through seventh rounds will qualify for the Level Three Proven Performance Escalator in his fourth League Year if he was selected to one or more Pro Bowls on the original ballot in any of his first three seasons.

(e)

Amount.

(e)(i)

For players selected in the 2017 Draft, the Level One Proven Performance Escalator under Subsection (d)(ii) above shall equal the difference between (i) the amount of the Restricted Free Agent Qualifying Offer for a Right of First Refusal Only as set forth in, or as calculated in accordance with, Article 9 for the League Year in such player’s fourth season and (ii) the player’s year-four Rookie Salary (excluding signing bonus and amounts treated as signing bonus). The resulting amount shall be added to the stated amount of the player’s year-four Paragraph 5 Salary. By way of example, if a rookie drafted in round three of the 2017 Draft has a year-four Rookie Salary of $2,150,000 (consisting of $1,400,000 in Paragraph 5 Salary, $600,000 in signing bonus proration, $100,000 in an incentive, and a $50,000 roster bonus), and the 2020 Restricted Free Agent Qualifying Offer for a Right of First Refusal Only equals $2,125,000, then, upon achieving the qualifier, the player’s stated Paragraph 5 Salary ($1,500,000) shall increase by $575,000 (i.e., $2,125,000 minus (1) the $1,400,000 Paragraph 5 Salary, (2) the $100,000 incentive, and (3) the $50,000 roster bonus). As a result, the player’s total earnable Salary in the 2020 League Year (minus his signing bonus proration) shall be $2,125,000, consisting of the player’s $1,975,000 Paragraph 5 Salary (as escalated), his $100,000 incentive, and his $50,000 roster bonus.

(e)(ii)

For players selected in the 2018 or any subsequent Draft, the Level One Proven Performance Escalator under Subsections (d)(i) and (ii) above shall equal the difference between (i) the dollar amount of the Restricted Free Agent Qualifying Offer for a Right of First Refusal and Draft Selection at Player’s Original Draft Round as set forth in, or as calculated in accordance with, Article 9 for the League Year in such player’s fourth season and (ii) the player’s year-four Rookie Salary (excluding signing bonus and amounts treated as signing bonus). The resulting amount shall be added to the stated amount of the player’s year-four Paragraph 5 Salary. By way of example, if a rookie drafted in round two of the 2018 Draft has a year-four Rookie Salary of $2,550,000 (consisting of $1,500,000 in Paragraph 5 Salary, $900,000 in signing bonus proration, $100,000 in an incentive, and a $50,000 roster bonus), and the 2021 Restricted Free Agent Qualifying Offer for a Right of First Refusal and Draft Selection at Player’s Original Draft Round equals $2,400,000, then, upon achieving the qualifier, the player’s stated Paragraph 5 Salary ($1,500,000) shall increase by $750,000 (i.e., $2,400,000 minus (1) the $1,500,000 Paragraph 5 Salary, (2) the $100,000 incentive, and (3) the $50,000 roster bonus). As a result, the player’s total earnable Salary in the 2021 League Year (minus his signing bonus proration) shall be $2,400,000, consisting of the player’s $2,250,000 Paragraph 5 Salary (as escalated), his $100,000 incentive, and his $50,000 roster bonus.

(e)(iii)

The Level Two Proven Performance Escalator under Subsection (d)(iii) above shall equal the difference between (i) the dollar amount of the Restricted Free Agent Qualifying Offer for a Right of First Refusal and Draft Selection at Player’s Original Draft Round as set forth in, or as calculated in accordance with, Article 9 for the League Year in such player’s fourth season, plus $250,000 and (ii) the player’s year-four Rookie Salary (excluding signing bonus and amounts treated as signing bonus). The resulting amount shall be added to the stated amount of the player’s year-four Paragraph 5 Salary. By way of example, if a rookie drafted in round two of the 2018 Draft has a year-four Rookie Salary of $2,550,000 (consisting of $1,500,000 in Paragraph 5 Salary, $900,000 in signing bonus proration, $100,000 in an incentive, and a $50,000 roster bonus), and the 2021 Restricted Free Agent Qualifying Offer for a Right of First Refusal and Draft Selection at Player’s Original Draft Round, plus $250,000, equals $2,650,000, then, upon achieving the qualifier, the player’s stated Paragraph 5 Salary ($1,500,000) shall increase by $1,000,000 (i.e., $2,650,000 minus (1) the $1,500,000 Paragraph 5 Salary, (2) the $100,000 incentive, and (3) the $50,000 roster bonus). As a result, the player’s total earnable Salary in the 2021 League Year (minus his signing bonus proration) shall be $2,650,000, consisting of the player’s $2,500,000 Paragraph 5 Salary (as escalated), his $100,000 incentive, and his $50,000 roster bonus.

(e)(iv)

The Level Three Proven Performance Escalator under Subsection (d)(iv) above shall equal the difference between (i) the dollar amount of the Restricted Free Agent Qualifying Offer for a Right of First Refusal and One Second Round Draft Selection set forth in, or as calculated in accordance with, Article 9 for the League Year in such player’s fourth season and (ii) the player’s year-four Rookie Salary (excluding signing bonus and amounts treated as signing bonus). The resulting amount shall be added to the stated amount of the player’s year-four Paragraph 5 Salary. By way of example, if a rookie drafted in round two of the 2018 Draft has a year-four Rookie Salary of $2,550,000 (consisting of $1,500,000 in Paragraph 5 Salary, $900,000 in signing bonus proration, $100,000 in an incentive, and a $50,000 roster bonus), and the 2021 Restricted Free Agent Qualifying Offer for a Right of First Refusal and One Second Round Draft Selection equals $3,900,000, then, upon achieving the qualifier, the player’s stated Paragraph 5 Salary ($1,500,000) shall increase by $2,250,000 (i.e., $3,900,000 minus (1) the $1,500,000 Paragraph 5 Salary, (2) the $100,000 incentive, and (3) the $50,000 roster bonus). As a result, the player’s total earnable Salary in the 2021 League Year (minus his signing bonus proration) shall be $3,900,000, consisting of the player’s $3,750,000 Paragraph 5 Salary (as escalated), his $100,000 incentive, and his $50,000 roster bonus.

(f)

The amount by which a player’s Paragraph 5 Salary may increase pursuant to this section shall not be considered Rookie Salary and shall not count toward the Total Rookie Compensation Pool, the Club’s Total Rookie Allocation, or the 25% Increase Rule. (g) No portion of the Proven Performance Escalator may be guaranteed for skill, football-related injury or Salary Cap-related contract termination either before or after the player has achieved the qualifiers for the Escalator.