Based on a copy of a document that was presented to the NFL players prior to today’s vote of the NFLPA’s Executive Committee and Board of 32 player representatives, attached below is a summary of the terms of the current settlement agreement between the NFL players and owners.
The complete document is available here. New 2011 Deal Summary-7-25-11
Revenue Split and Salaries
Revenue Sharing with Players – Revenue sharing will be calculated based on All Revenue, as opposed to the old system under which the owners received the first $1 billion, and the formula was applied to the remainder. The players’ share of All Revenue will range from 48.5 percent to a guaranteed floor of 47 percent.
Salary Cap – The Salary Cap is set at $120.375 million for this year, with $22.025 million in benefits.
Guaranteed Spend – League wide spending is guaranteed to be between 99 and 95 percent of the Cap. There will be a guaranteed league-wide cash spend of 99 percent of the Cap in 2011-12. The guaranteed league-wide cash spend will be 95 percent in 2013-16 and 2017-20, over those four year periods. On a per team basis, there is a minimum team cash spend of 89 percent of the Cap in 2013-16 and 2017-20, based on four year averages.
Minimum Salaries – Minimum league salaries are increased by $55,000 from 2010 levels. The minimum salary for a rookie in 2011 will be $375,000, versus $600,000 for a third year player. These minimums increase each year at predetermined levels. For instance, in 2014 the rookie minimum will be $420,000, versus $640,000 for a third year player.
Rookie Salary Cap – There will be an overall limit on total rookie compensation of $874 million this year, increasing with the cap each year. The savings from the rookie cap are estimated to total $950 million over the life of the agreement, and those savings are to be spent on the Legacy Fund, a veteran performance pool, or any other purpose the NFLPA may deem appropriate.
Rookie Wage Scale – There will be no rookie wage scale.
Contract Length / Free Agency – Contracts for first round draft choices will be four years, plus a team option for a fifth year. For rounds 2-7, the contract length will be four years.
Fifth Year Option – the salary for the fifth year option will be dependent upon where the player was selected. Player selected in the first ten picks will receive a fifth year option salary of the top ten salaries at the player’s position. A player selected between pick 11 and 32 will receive a fifth year option salary at the average salary of the top 3rd through 25th players at their position.
Health and Safety
Legacy Fund for Retired Players – A $620 million Legacy Fund will be created to benefit Pre-93 players. The fund will be paid 51 percent by the NFL, outside of the Cap, and 49 percent out of the players share of All Revenue.
Discretionary Spending – The NFLPA will have discretionary use of $20 million per year for health, safety and former player issues.
Work Rules – A number of changes to the working conditions were put in place. In training camp, there will no longer be 2-a-day practices, and maximum of 4.5 hours of field time per day will be allowed. One padded practice limited to 3 hours in training camp, with a second practice limited to non-helmet walk through. The agreement also provides for unannounced inspections by NFLPA Staff to ensure compliance with the new work rules.
Term of the Deal
The deal is a ten year deal, through the 2020 season. The 2021 NFL Draft will be the end of the deal rights.