Rookie Compensation and Rookie Compensation Pool
Section 4(e)(iv)Proven Performance Escalator
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.