2011 Deal Summary of Main Terms (7/25/11



Players’ Share of Revenues
• “All Revenues” (AR) included in cap calculation with limited deductions as opposed to TR with significant deductions • 1.5% Stadium Credit to encourage new stadiums and renovations resulting in significant increases in new revenues being included in AR

Players’ Percentage of AR
• Players’ share of Revenue calculated as follows: •55% of League Media (TV, Radio, etc.) •45% of NFL Ventures/Post-Season •40% of local Club revenues • Upper Band of 48% (2012-14) & 48.5% (2015-20) • Lower Band of 47%

Players’ Percentage of AR
• After applying the 1.5% Stadium Credit, Lower Band cannot be below 47%(2012-14), 46.5% (2015-16), 46% (2017-20) • Guarantee of Cap amount being an average of 47% over the life of the Agreement • True up to actual revenues each year

Minimum Cash Spend Requirements
• Guaranteed League-Wide Cash Spend of 99% of the Salary Cap in 2011-12 • Guaranteed League-Wide Cash Spend of 95% of salary cap in 2013-16 and 2017-20 four year periods • Minimum Team Cash Spend - 89% of salary cap in 2013-16 and 2017-20 on a four-year average

2011 Cap - Transition
• Salary Cap set at $120.375M with $22.025M in benefits for 2011 • $3M in additional cap room per Club in 2011(at club option) by taking up to $1M off the cap charge for up to three players per Club with 5 or more Accrued Seasons (same rule for 2012, but for a total of $1.5M in extra room created from three players with a $500k in salary) • No Performance Based Pay in 2011, with money instead devoted to cap room 6

2011 Cap Transition
• 90 player roster for 2011 preseason training camp


• Tuesday, July 26 – Facilities open – Trading begins – 10 am EST clubs may sign all rookies; and negotiate with but not sign all other players


• Training camps open 15 days prior to the first game (July 27, 28, 29, 31) • Thursday, July 28 at 4:01pm EST
– Clubs may waive or terminate Player Contracts


• Friday, July 29 at 6:00 pm EST – Renegotiate contracts – Sign players but those players may not receive any contract payments and they will be prohibited from physical activity until a CBA is ratified – Signed Rookies may participate and have protection if injured.

• Thursday, August 4 – League Year begins if the CBA is ratified (League Year could start earlier if CBA is ratified sooner) – All clubs must be under the cap (Top 51 rule applies)


2011 Cap - Transition
• Workout Bonuses Paid as follows:
– If player is waived prior to 4:00 pm on Friday, July 29th • Bonus less than $50k-- player paid full amount • Bonus from $50k to $100k – player paid $50k • Bonus over $100k – player paid 50% up to max of $100k
– If player is waived on or after 4:01 pm on July 29th • Player paid the full amount of the bonus

Roster and Option Bonuses
• Roster & Option bonuses which were to be earned during the period of the lockout, amended to be earned if on the roster at 4:00 pm on July 29th (e.g., roster bonus to be earned on March 15th, amended to be earned if on roster at 4:00 pm on July 29th) • Players can be required to report on either July 26th or 27th to get a physical

Rookie Compensation
• Overall limit on Total Rookie Compensation of $874M in 2011, increasing with cap in subsequent years • Year-One Rookie Compensation of $159M in 2011, increasing with cap • Mandatory contract length
– 4 years (plus a 5th year club option for Round 1) – 4 years for Rounds 2 to 7 – 3 years for Undrafted Rookies

Rookie Compensation
• Player must contract for at least the Year-One Minimum Allotment provided for in his draft slot. • 25% Rule – all compensation applies toward the 25% maximum increase year over year including signing bonus proration (Proration is for 4 years for all Drafted Players)

Rookie Compensation
• For Undrafted Rookies, $75k maximum for signing bonuses per Club ($25k maximum for the Year-One Rookie Compensation Pool). Increases with cap.


Rookie Compensation
• No limit on the amount of guaranteed compensation allowed in a contract, except that the contract cannot skip guaranteed years after the first year (e.g. a player who had his full Rookie Salary guaranteed in his third season must have his salary fully guaranteed for his second season)

Rookie Compensation
• Players may only contract for the following types of compensation:
Rookie Salary, minimum offseason workout pay, Fifth Year Option (for 1st round), Proven Performance Escalators (3rd through 7th rounds) and 5 Community Relations/Sponsor appearances per year not to exceed $5,000 per appearance (this non-football compensation does not count against Total Rookie Compensation limit). 18

Rookie Compensation
• Limited incentives
– Rounds 1 & 2 35% playtime in first year/45% playtime in subsequent years – Rounds 3 – 7 15% playtime in first year/30% playtime in subsequent years

(Counts 100% against the Year-One/Rookie Allocation, Total Rookie Compensation, 25% Rule, etc.)

Rookie Compensation
• 5th year club option for 1st rounder to be exercised after the player’s 3rd season, guaranteed for injury when exercised and for skill, injury & cap if on the roster at the start of the 5th League Year:
– Picks 1 to 10 – Salary of the average of the top ten players at player’s position – Picks 11 to 32 – Salary of the average of the top 3rd through 25th players at player’s position 20

Rookie Compensation
EXAMPLE • As a quarterback, the 1st pick in the 2011 Draft may earn $22.03M over four years, plus an option year salary of $14.3M (assuming a 5% growth rate) in his 5th year if exercised for a total of $36.33M over 5 years.


Rookie Compensation
• Proven Performance Escalator for Rounds 3 -7 in the fourth year based on 35% playtime in two of the first three seasons or an average of 35% playtime over 3 years • Escalator increases 4th year salary to the ROFR amount which is $1.2M in 2011, and increases with the Salary Cap 22

Rookie Compensation
• Savings from change in Total Rookie Compensation system calculated to be $25m for 2012, $50m for 2013, $100m in 2014, increasing each year thereafter with the Year-One Rookie Compensation Pool (minimum of $775m) • Savings to be spent on Legacy Fund, veteran performance pool or any other purpose the NFLPA may deem 23 appropriate

Minimum Salaries
Increased $55k from 2010
CS 0 1 2 3 4-6 7-9 10+ 2011 375 450 525 600 685 810 910 2012 390 465 540 615 700 825 925 2013 405 480 555 630 715 840 940 2014 420 495 570 645 730 855 955


Injury Protection
• Injury Protection benefit increased to 50% of the player’s salary up to $1.0M in the year after the year of injury • Extended Injury Protection benefit for the second year after the year of injury for 30% of the player’s salary up to $500k • 50% of the benefit subject to a dollar for dollar credit against workers comp for these Injury Protection benefits only

Workers Comp
• Continue time-limited credit contained in the expired CBA for any Paragraph 5 Salary paid to a player against any player worker compensation benefit paid • Continue to litigate with the clubs over a player’s right to file in the jurisdiction of his choosing and not be bound by player contract language which would limit that right (e.g. California cases) 26

Offseason Workouts
• Limited to 9 weeks • Three Phases
– Phase One
• Two weeks; limited to strength and conditioning activities (“dead ball”); only strength and conditioning coaches allowed on field

– Phase Two
• Three weeks; individual and “perfect play” drills allowed (no offense vs. defense); all coaches allowed on the field

Offseason Workouts
– Phase Three • 4 weeks; 10 OTA’s; maximum of three OTA’s for the first 2 weeks; maximum of 4 OTA’s for the 3rd or 4th week, with the other week being the minicamp – Fines for violations (in addition to week of lost workouts): • Coaches - $100K for 1st violation; $250K for 2nd • Clubs - $250K for 1st violation; $500K for 2nd 28

• Physicals on Monday but not practice; practices Tuesday – Thursday; day off on Friday • Maximum of 3 ½ hours on the field per day
– One practice per day up to 2 ½ hours – Second practice limited to walk through activities only

• Mandatory veteran reporting date no earlier than 15 days prior to the first game • 1st day limited to physicals and meetings • 2nd and 3rd day no pads or contact • Only one padded practice per day limited to 3 hours with the second practice up to the 4 hour limit being a walk through


• Limit of 14 total padded practices during the Regular Season, 11 of which must be held during the first 11 weeks (club may hold 2 padded practices during only one week) with the remaining 3 during the final 6 weeks • One padded practice per week in postseason


• Padded practices limited to 3 hours, plus a walk through with position coaches not to exceed 30 minutes • Bye Weeks – 4 consecutive days off


Forfeiture Provisions
• League wide rules regarding maximum forfeiture provisions for signing, roster, report and option bonuses • Forfeiture limited and generally proportionate to games missed due to breach (e.g. missing training camp for six days would result in forfeiture of 15% of player’s prorated bonus, with 1% per day after that up to 25%; regular season - 25% for missing first game, 1/17th each game after that; higher forfeiture if separate, multiple breaches)

Dispute Resolution
• System Arbitrator for AR, Salary Cap and free agency issues selected by the parties. • Appeals to a 3-member appeals panel, including at least one former judge. • 3-year statute of limitations.


Legacy Fund
• $620M to be paid for the benefit of former players during the term of the Agreement • 51% to be paid by the NFL outside of the cap • 49% to be paid out of the players’ share of AR

Other Terms
• Agreement length of 10 years through the 2020 Season • 46 player Active List


League Demands Rejected
• No massive pay cut - NFL initially demanded 20% cut in player share • No sharing in future revenue growth • No 18 games • No rookie & veteran wage scale • Restricting players with 4 and 5 Accrued Seasons in 2011 who otherwise would be unrestricted • Full forfeiture of compensation already earned

AFTER the call, please email us at NFLPA.Agentservices@nflplayers.com


Sign up to vote on this title
UsefulNot useful