NFL Collective Bargaining Agreement
Rookie Compensation and Rookie Compensation Pool
Section 7Fifth-Year Option for First Round Selections
Exercise Period. A Club has the unilateral right to extend from four years to five years the term of any Rookie Contract of a player selected in the first round of the Draft (the “Fifth-Year Option”). To do so, the Club must give written notice to the player after the final regular season game of the player’s third season but prior to May 3 of the following League Year (i.e., year four of the contract). Any notice required or permitted to be given by a Club to a player under this Section shall be sent either by personal delivery, or by overnight mail, or be electronic mail in .pdf form, in each case a confirmation copy shall also be sent by first class mail, addressed as follows:
To the player (for overnight and first class mail): to his address on file with the Club, or if no such address is on file with the Club, to any address where the Club reasonably expects the player to be located.
To the NFLPA:
NFL Players Association
63 Gene Upshaw Place
1133 20th Street, NW
Washington, DC 20036 Attention: Mark Levin
(b) Electronic Mail Address (in .pdf form required):
Mark.Levin@nflpa.com
To the NFL:
National Football League
345 Park Avenue
New York, NY 10154
(b) Electronic Mail Address (.pdf form required):
nflwaivers@nfl.com
Any written notice required or permitted to be given by a Club to a player under this Subsection shall be deemed given when sent by the Club.
Compensation Terms. The Fifth-Year Option is a non-negotiable, standard fixed Paragraph 5 Salary calculated pursuant to Subsections (e), (f), and (g) below. Any compensation terms other than the player’s Paragraph 5 Salary described in Subsections (e), (f), and (g) below are prohibited.
Automatic Inclusion. The terms and conditions of the Fifth-Year Option shall, if exercised, be as set forth below. The Fifth-Year Option shall also contain all permissible non-compensation terms from the player’s year-four contract carried forward unchanged. The Fifth-Year Option shall be deemed a part of every Rookie Contract of a player selected in the first round by virtue of this Agreement and may not be separately attached to such Rookie Contract.
Prohibited Terms Related to the Option. In a Rookie Contract, there may be no option bonuses, option exercise fees, nonexercise fees, option buyout amounts or any other form of payment that vests as a result of the Club either (i) exercising the Fifth-Year Option, or (ii) declining to exercise the Fifth Year Option. For example, no amount contracted for or paid to the player for years one through four of his Rookie Contract may be contingent upon the exercise or nonexercise of the Fifth-Year Option. The Club may not waive its unilateral right to exercise or not to exercise the Fifth Year Option.
Fifth-Year Option for First Ten Selections in Round One of the 2016 and 2017 Drafts.
For a Drafted Rookie selected with one of the first ten overall picks in the 2016 or 2017 Drafts, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal the Transition Tender that applies in the League Year that is the fourth year of the Rookie’s Contract (as calculated pursuant to Article 10, Section 4) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth-Year Option.
For any player drafted with any selection (1-32) in the first round of the 2016 or 2017 Drafts, the entire Paragraph 5 Salary for the Fifth-Year Option shall be guaranteed for injury-related termination only, effective upon the Club’s exercise of the Option. The entire Paragraph 5 Salary for the Fifth-Year Option shall be guaranteed for skill, injury, and Salary Cap-related termination if the player is on his Club’s active roster (Active List) at the start of the player’s fifth League Year (i.e., the option year).
The Fifth-Year Option Paragraph 5 Salary for any player drafted with any selection (1-32) in the first round of the 2016 or 2017 Drafts shall not be considered Rookie Salary and will not count against the Total Rookie Compensation Pool, or against the Club’s Total Rookie Allocation, or for purposes of the 25% Increase Rule.
Fifth-Year Option for All Other Selections in Round One of the 2016 and 2017 Drafts.
For a Drafted Rookie selected in the first round of the 2018 or any subsequent Draft, who is not selected to a Pro Bowl on the original ballot during any of his first three seasons and who did not (1) participate in a minimum of 75% of his Club’s offensive or defensive plays in any two of his first three regular seasons; or (2) participate in a “cumulative average” of at least 75% of his Club’s offensive or defensive plays over his first three regular seasons; or (3) participate in a minimum of 50% of his Club’s offensive or defensive plays in each of his first three regular seasons, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal an amount that would apply in the fourth League Year of the Rookie Contract if one calculated the Transition Tender for that League Year by using the same methodology as set forth in Article 10, Section 4, but using the applicable third through twenty-fifth highest Salaries (as “Salary” is defined in Article 10) (as opposed to the ten highest Salaries) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth-Year Option. “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.
For any player drafted with any selection (1-32) in the first round of the 2016 or 2017 Drafts, the entire Paragraph 5 Salary for the Fifth-Year Option shall be guaranteed for injury-related termination only, effective upon the Club’s exercise of the Option. The entire Paragraph 5 Salary for the Fifth-Year Option shall be guaranteed for skill, injury, and Salary Cap-related termination if the player is on his Club’s roster at the start of the player’s fifth League Year (i.e., the option year).
The Fifth-Year Option Paragraph 5 Salary for any player drafted with any selection (1-32) in the first round of the 2016 or 2017 Drafts shall not be considered Rookie Salary and will not count against the Total Rookie Compensation Pool, or against the Club’s Total Rookie Allocation, or for purposes of the 25% Increase Rule.
Fifth-Year Option for All Selections in Round One of the 2018 and Subsequent Drafts.
For a Drafted Rookie selected in the first round of the 2018 or any subsequent Draft, who is not selected to a Pro Bowl on the original ballot during any of his first three seasons and who did not (1) participate in a minimum of 75% of his Club’s offensive or defensive plays in any two of his first three regular seasons; or (2) participate in a “cumulative average” of at least 75% of his Club’s offensive or defensive plays over his first three regular seasons; or (3) participate in a minimum of 50% of his Club’s offensive or defensive plays in each of his first three regular seasons, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal an amount that would apply in the fourth League Year of the Rookie Contract if one calculated the Transition Tender for that League Year by using the same methodology as set forth in Article 10, Section 4, but using the applicable third through twenty-fifth highest Salaries (as “Salary” is defined in Article 10) (as opposed to the ten highest Salaries) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth-Year Option. “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.
For a Drafted Rookie selected in the first round of the 2018 or any subsequent Draft who is not selected to a Pro Bowl on the original ballot during any of his first three seasons but who (1) participated in a minimum of 75% of his Club’s offensive or defensive plays in any two of his first three regular seasons; or (2) participated in a “cumulative average” of at least 75% of his Club’s offensive or defensive plays over his first three 43 regular seasons; or (3) participated in a minimum of 50% of his Club’s offensive or defensive plays in each of his first three regular seasons, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal an amount that would apply in the fourth League Year of the Rookie Contract if one calculated the Transition Tender for that League Year by using the same methodology as set forth in Article 10, Section 4, but using the applicable third through twentieth highest Salaries (as “Salary” is defined in Article 10) (as opposed to the ten highest Salaries) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth- Year Option. “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.
For a Drafted Rookie selected in the first round of the 2018 or any subsequent Draft who is selected to one, but not more than one, Pro Bowl on the original ballot during any of his first three seasons, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal the Transition Tender that applies in the League Year that is the fourth year of the Rookie’s Contract (as calculated pursuant to Article 10, Section 4) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth-Year Option.
For a Drafted Rookie selected in the first round of the 2018 or any subsequent Draft who is selected to two or more Pro Bowls on the original ballot during any of his first three seasons, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal the Franchise Tender that applies in the League Year that is the fourth year of the Rookie’s Contract (as calculated pursuant to Article 10, Section 2) for players at the same position (using the categories in Article 10, Section 7(a)) at which the Rookie participated in the most plays during his third League Year. No other Salary (other than the minimum offseason workout per diem and compensation for community relations/sponsor appearances or promotional activities (subject to the maximum amounts permitted in Section 3(b)(iv) above)) is permitted for the Fifth-Year Option.
For any Drafted Rookie selected in the first round of the 2018 or any subsequent Draft, the entire Paragraph 5 Salary for the Fifth-Year Option shall become guaranteed for skill, injury, and Salary Cap-related termination, effective upon the Club’s exercise of the Option. In the event that the entire Paragraph 5 Salary for the fourth year of the player’s Rookie Contract is not guaranteed for skill, injury, and Salary Cap-related termination, the non-guaranteed amount shall become guaranteed for skill, injury, and Salary-Cap related termination effective upon the Club’s exercise of the Option. Upon exercise of the Option, the above-described guarantees shall be subject to the terms and conditions of any pre-existing individually negotiated non-compensation term in year four of the player’s contract relating to the forfeiture of guarantees (also referred to as “void provisions” in this Subsection for the sake of convenience), to the extent permitted in Article 4, Section 9(g) (“Voiding of Guarantees”). In addition to applying to the previously non-guaranteed amount in the fourth League Year of the player’s contract, the year-four guarantee void provision shall be carried forward to, and shall be applicable to, the player’s Paragraph 5 Salary in the fifth League Year of his contract (the “option year”) unchanged except to the extent necessary to effect the enforceability of such provisions (e.g., without limitation, changes regarding the applicable contract year of such provisions and the amount of the year-five guarantee). Any such changes shall be deemed to have been automatically made effective upon the Club’s exercise of the Option. The year-four guarantee, which is applicable to both: (i) the previously non-guaranteed amount of a player’s yearfour Paragraph 5 Salary; and (ii) the player’s Paragraph 5 Salary in the option year, shall be void if the player breaches the terms and conditions of that guarantee: (i) at any time in the fourth League Year of the player’s contract after the Option has been exercised; or (ii) at any time in the fifth League Year of the player’s contract after the Option has been exercised. By way of example, without limitation to other examples, if a player’s year-four Paragraph 5 Salary is $4 million, of which $3 million is guaranteed upon contract execution for Skill, Injury, and Salary Cap-related termination subject to an individually negotiated void provision, and the player’s Paragraph 5 Salary for his Fifth-Year Option is $9 million, and the Club elects to exercise that Option on May 2 of the contract’s fourth League Year, then the previously non-guaranteed $1 million of the player’s year-four Paragraph 5 Salary and the full $9 million of the player’s Paragraph 5 Salary in the fifth League Year would become guaranteed for Skill, Injury, and Salary Cap-related termination upon exercise of the Club’s Option, subject to the individually negotiated void provision applicable to the $3 million Paragraph 5 Salary guarantee, which void provision would become applicable to the previously non-guaranteed amount of the player’s year-four Paragraph 5 Salary, and would carry forward, and become applicable to, the $9 million Paragraph 5 Salary guarantee in the option year. If at any time after the Fifth-Year Option is exercised on May 2 of the fourth year of the contract, including at any time during the fifth League Year, the player breaches the terms and conditions of the guarantee, then the guarantee applicable to the previously non-guaranteed amount of the player’s year-four Paragraph 5 Salary of $1 million and the $9 million Paragraph 5 Salary in the option year shall automatically be null and void. For the avoidance of doubt, in this example the $3 million that was guaranteed upon contract execution for skill, injury and Salary Cap-related termination (i.e., not as the result of the Club’s exercise of the Option as described above) shall at all times remain subject to the terms of the provision in the player’s Rookie Contract relating to the voiding of that year-four guarantee. For the avoidance of doubt, in the event that guarantee has voided as the result of a prior breach of its terms and conditions, the entire amount of the player’s Paragraph 5 Salary in year four shall become guaranteed for skill, injury, and Salary Cap-related termination upon exercise of the Option, subject to the further terms and conditions of this Subsection.
The Fifth-Year Option Paragraph 5 Salary for any player drafted with any selection (1-32) of the first round of the 2018 or any subsequent Draft shall not be considered Rookie Salary and will not count against the Total Rookie Compensation Pool, or against the Club’s Total Rookie Allocation, or for purposes of the 25% Increase Rule.
Breach.
Notwithstanding anything to the contrary in Article 42 or Article 4, after the Club has exercised its Fifth-Year Option for any player selected in the first round of the 2016 or any subsequent Draft, any unexcused late reporting to or absence from preseason training camp by a player in the fifth League Year of his contract (the option year) shall subject the player to a fine of $40,000 per day for the 2020-2025 League Years and $45,000 per day for the 2026-2030 League Years, plus one week’s regular season salary for each preseason game missed. For purposes of this Subsection, Preseason Training Camp shall be defined as the period beginning with the mandatory reporting date for that player through the Sunday immediately preceding the first game of the NFL regular season. For the sake of clarity and the avoidance of doubt, the Progressive Discipline requirement set forth in Article 42, Section 1(a) shall not apply to any fine under this Subsection.
Nothing in this Section (h) shall preclude a player selected in the first round of the 2016 or any subsequent Draft and a Club from agreeing to contract provisions relating to the forfeiture of Salary earnable in any League Year prior to the player’s option year, subject to the restrictions set forth in Article 4, Section 9.