NFL Collective Bargaining Agreement
Rookie Compensation and Rookie Compensation Pool
Section 9Rookie Redistribution Fund
In each League Year of this Agreement other than the 2020 League Year, the NFL and the NFLPA shall create a fund known as the Rookie Redistribution Fund (the “Fund”) that will be treated in the same manner as any other Player Benefit Cost, provided that the NFLPA provides the NFL with notice prior to the issuance of the Initial Special Purpose Letter that the NFLPA desires to have the Fund and indicates the amount of the Fund. The maximum amount of this Fund shall be $64 million for the 2021 League Year. The maximum amount of the Fund shall increase in each subsequent League Year by the annual rate of growth of the Year-One Rookie Compensation Pool, except that for the 2026 League Year, the maximum amount of the Fund shall increase by the annual rate of growth of the Year-One Rookie Compensation Pool, plus $32 million. In any League Year in which there is a Fund and there are seventeen regular season games, the Fund shall be used to fund the Additional Game Check, as defined under Article 26, Section 1(c). In each League Year in which there is a Fund, the remaining amount of the Fund (less any amount used to fund the Additional Game Check in accordance with the immediately preceding sentence, if applicable) shall be distributed in a proportion to be determined by the NFLPA: (i) to fund a performance-based compensation pool as agreed upon by the parties; (ii) for the 2026 League Year or any subsequent League Year, to fund a benefit for players whose stated Paragraph 5 Salaries in the such League Year are Minimum Salaries, as defined under Article 26, Section 1(a) and (b) of this Agreement; provided, however, that the NFL and the NFLPA must first agree upon the distribution formula; or (iii) for any other new Benefit for current or retired players as agreed upon by the parties. Set forth in the table below are examples, without limitation to any other examples, of the effect that various distributions would have upon the calculation of the Salary Cap under a hypothetical Player Cost Amount of $230 million assuming: (i) the maximum Fund amount equals $64 million; and (ii) that projected Player Benefit Costs other than the Fund equal $30 million per Club:
Scenario | Declared Fund | Required Distribution (per-Club) | Player Benefit Costs (per-Club) | Salary Cap | Player Cost Amount |
A | $0 | $0 | $30,000,000 | $200,000,000 | $230,000,000 |
B | $32,000,000 | $1,000,000 | $31,000,000 | $199,000,000 | $230,000,000 |
C | $64,000,000 | $2,000,000 | $32,000,000 | $198,000,000 | $230,000,000 |