NFL Collective Bargaining Agreement

Article 7
Rookie Compensation and Rookie Compensation Pool

Section 2
Operation

(a)(i)

For the 2020 League Year, the Total Rookie Compensation Pool (excluding compensatory selections and the Undrafted Rookie Reservation) may not exceed $1,430,000,000. For the 2020 League Year, the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) shall equal $260,000,000.

(a)(i)(ii)

In each of the 2021–2030 League Years, a “Baseline Year-One Pool” shall be calculated. The Baseline Year-One Pool shall be defined as the sum of: (a) the YearOne Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) for the prior League Year; and (b) the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) for the prior League Year multiplied by the percentage increase in the Salary Cap (comparing the Salary Cap in the current League Year to the Salary Cap in the prior League Year). By way of example only, if the Baseline Year-One Pool in the immediately prior League Year equals $200,000,000, and the percentage increase in the Salary Cap is 5%, then the Baseline Rookie Pool in the current League Year will equal $210,000,000 (i.e., $200,000,000 plus $10,000,000 ($200,000,000 multiplied by 0.05)).

(a)(i)(iii)

In each of the 2021-2030 League Years, a “Minimum Year-One Pool Increase” shall be calculated. The Minimum Year-One Pool Increase shall be defined as the sum of: (a) the 224 non-compensatory draft picks multiplied by the annual increase in the Minimum Salary of a player on a Club's Active/Inactive List with zero Credited Seasons; and (b) one percent of the YOPIEMS for the prior League Year, as defined in Section 1(g)(iii)(A) above. By way of example, if the YOPIEMS for the prior League Year equal $150 million, one percent of the YOPIEMS for the prior League Year equals $1.5 million, and will be included in (but not added to) the current year’s Minimum Year-One Pool Increase. By way of further example: if one percent of the YOPIEMS for a prior League Year equals $1.5 million, then for years in which the Minimum Salary of a player on a Club’s Active/Inactive List with zero Credited Seasons grows by $45,000, the Minimum Year-One Pool Increase is $11.58 million (i.e., $45,000 multiplied by 224 equals $10.08 million, plus $1.5 million); for years in which the aforementioned Minimum Salary growth is $50,000, the Minimum Year One Pool Increase is $12.7 million (i.e., $50,000 multiplied by 224 equals $11.2 million, plus $1.5 million).

(a)(i)(iv)

In each of the 2021–2030 League Years, the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) shall increase each League Year to the greater of (i) the Baseline Year-One Pool or (ii) the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) in the prior League Year plus the Minimum Year-One Pool Increase.

(a)(i)(v)

In each League Year in which the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) increases by the Minimum Year-One Pool Increase, an amount equal to: (a) the prior League Year’s Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) plus the Minimum Year-One Pool Increase (as calculated in the examples in Subsection 2(a)(iii) above); (b) minus the Baseline Year-One Pool, shall be included in the “Rookie Pool Bank” and carried forward, with Interest, and shall be applied to reduce the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) in any future League Year(s), provided that: (1) the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) may never increase by less than the Minimum Year-One Pool Increase; (2) the Year-One Rookie Compensation Pool In Excess of Minimum Salaries (also referred to as “YOPIEMS”) shall not be less than one hundred and one percent (101%) of the YOPIEMS in the prior League Year; and (3) the parties may agree to defer application of some or all of the Rookie Pool Bank in a League Year in which it otherwise could apply.

(a)(i)(vi)

In the event of a forfeited selection in a Draft, the bank calculated pursuant to this Section shall be reduced by an amount equal to: (A) the Year-One Formula Allotment for that forfeited selection; multiplied by (B) the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation). The Formula Allotments for these forfeited selections shall not be included in the respective Club’s Year-One Rookie Allocation or Total Rookie Allocation for the applicable League Year. For the avoidance of doubt, because of the forfeited selection, for the applicable League Year, the sum of the Year-One Rookie Allocations for all Clubs shall be less than the Year-One Rookie Compensation Pool, and the sum of the Total Rookie Allocations for all Clubs shall be less than the Total Rookie Compensation Pool.

(a)(i)(vii)

In each of the 2021–2030 League Years, excluding compensatory selections and the Undrafted Rookie Reservation, the Total Rookie Compensation Pool in each League Year shall be the Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) multiplied by 5.5 (e.g., the ratio between the 2020 Year-One Rookie Compensation Pool (excluding compensatory selections and one-third of the Undrafted Rookie Reservation) of $260,000,000 and the 2020 Total Rookie Compensation Pool (excluding compensatory selections and the Undrafted Rookie Reservation) of $1,430,000,000).

(b)

All amounts of Rookie Salary contracted for in each and every year of a Club’s Rookie Contracts shall count against the Total Rookie Compensation Pool and the Club’s Total Rookie Allocation whether or not such amounts are earned by the player or considered “likely to be earned” as set forth in Article 13.

(c)

All amounts of Year-One Rookie Salary shall count against the Year-One Rookie Compensation Pool, the Club’s Year-One Rookie Allocation and the Total Rookie Compensation Pool, whether or not such amounts are earned by the players or considered “likely to be earned” as set forth in Article 13.

(d)

No Club may enter into Rookie Contracts that, standing alone or in the aggregate, provide for Year-One Rookie Salary that would exceed the Club’s Year-One Rookie Allocation for that League Year. No Club may enter into Rookie Contracts with Drafted Rookies that, standing alone or in the aggregate, provide for Year-One Rookie Salary that would exceed the (i) Club’s Year-One Rookie Allocation for that League Year, minus (ii) one-third of the Undrafted Rookie Reservation (i.e., one-third of the amount calculated pursuant to Subsection 1(i) above).

(e)

No Club may enter into Rookie Contracts that, standing alone or in the aggregate, provide for aggregate Rookie Salary over all years of such Contracts that would exceed the Club’s Total Rookie Allocation. No Club may enter into Rookie Contracts with Drafted Rookies that, standing alone or in the aggregate, provide for Rookie Salary that would exceed (i) the Club’s Total Rookie Allocation for that League Year, minus (ii) the Undrafted Rookie Reservation.

(f)

A Club may not sign a Drafted Rookie for Year-One Rookie Salary that is less than the player’s Year-One Minimum Allotment multiplied by the Year-One Rookie Compensation Pool.

(g)

Notwithstanding the above, nothing shall prevent a Club from signing a player for an amount in excess of his Year-One Formula Allotment multiplied by the League-wide Year-One Rookie Compensation Pool, or his Year-One Minimum Allotment multiplied by the Year-One Rookie Compensation Pool, provided that the Club has Room available under its Year-One Rookie Allocation.

(h)

In the event that a Rookie signs his Rookie Contract after the commencement of the regular season, the Club must maintain Room under its Year-One Rookie Allocation of at least the Rookie’s Year-One Minimum Allotment multiplied by the YearOne Rookie Compensation Pool.

(i)

All Rookie Contracts entered into by a Club and a Drafted or Undrafted Rookie shall be subject to the provisions of Article 14 of this Agreement.

(j)

Any contract that violates the intent of any provision of this Article shall be disapproved. It is the intent of the parties to set an absolute maximum limit on the total amount of compensation contracted for by Drafted and Undrafted Rookies in each Draft class over the entire term of the players’ Rookie Contracts. If a contract signed by a Drafted or Undrafted Rookie is disapproved by the Commissioner as being inconsistent with the provisions of this Article in respect of (i) the mandatory term (length) of the contract; (ii) permissible compensation pursuant to (1) the Year-One Rookie Compensation Pool, (2) the Total Rookie Compensation Pool, (3) the Club’s Year-One Rookie Allocation, (4) the Club’s Total Rookie Allocation, (5) the 25% Increase Rule, (6) the player’s Year-One Minimum Allotment, (7) the Fifth Year Option, (8) the Proven Performance Escalator, or (9) the limit on the player’s permissible nonfootball compensation; or (iii) guarantees; the disapproval shall be upheld by the System Arbitrator and the Appeals Panel unless clear and convincing evidence demonstrates that the decision to disapprove the contract was incorrect.

(k)

None of the provisions of this Article shall affect a Club’s need for Room under the Salary Cap to sign a Rookie Contract or the accounting rules governing the Salary Cap set forth in Article 13.