Navigating the Ins and Outs of NFL Contracts: Key Terms to Know

Navigating the Ins and Outs of NFL Contracts: Key Terms to Know

As a football fan, you may have already heard of a player’s signing bonus, a salary cap, or a franchise tag, but do you know how they impact an NFL player’s contract? Understanding the key terms in an NFL contract can be critical to a team’s success and the player’s career.

Here’s a breakdown of the critical terms you should know to navigate NFL contracts:

1. Guaranteed Money: This is the money a player receives no matter what happens. It is the most crucial aspect of a contract. Guaranteed money often comes in the form of a signing bonus, which is paid upfront.

2. Salary Cap: The NFL imposes a cap on the amount a team can spend on their players’ salaries and bonuses each year. In 2021, the salary cap is set at $182.5 million per team.

3. Dead Money: This is the amount of cap space a team loses if they cut a player before the end of their contract. It is the remaining guaranteed money that was spread out over the contract before it was terminated.

4. Franchise Tag: A team has two options to keep a player after their contract expires. One is to sign a new contract, and the other is to use the franchise tag. The franchise tag means that the team must pay the player a one-year salary no less than the average of the top five players’ salaries in their position, or 120% of the player’s previous salary, whichever is higher.

5. Incentives: Many contracts have incentives built in to encourage players to perform well. These incentives are usually tied to individual statistics, such as the number of touchdowns, receptions, or yards.

6. Rookie Contracts: Rookie contracts are used to sign newly drafted NFL players. These contracts are for four years and include a fifth-year team option for first-round picks.

7. Restructuring: Restructuring a contract is changing the terms of an already signed deal to allow for more cap space in a particular season. This can be done in various ways, such as converting salary to signing bonus or extending the length of the contract while lowering base salary.

8. No-Trade Clause: A player with a no-trade clause in their contract cannot be traded to another team without their permission.

Understanding these key terms can help you navigate NFL contracts. But, keep in mind, contracts can be very complex and have several terms unique to each player and team. By knowing the basics, you’ll be better equipped to follow contract negotiations and understand contract-related news.