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Re: Salary Cap Request
Since you begged, here is some light reading from nflpa site.
There is more if you're interested. Enjoy.
Section 3. Guaranteed League-wide Salary: In any League Year in which a Salary Cap is in effect there shall be a Guaranteed League-wide Salary of 58% of actual Defined Gross Revenues. In the event that the Player Costs for all NFL Teams during any League Year in which a Salary Cap is in effect are less than 58% of actual Defined Gross Revenues for such season, then, on or before April 15 of the next League Year, the NFL shall pay an amount equal to such deficiency directly to players who played on NFL Teams during such season pursuant to the reasonable allocation instructions of the NFLPA.
Section 4. Salary Cap Amounts:
(a) Subject to the adjustments set forth below, the amount of the Salary Cap for each NFL Team in years that it is in effect shall be (1) in the 2002 League Year, 64% of the Projected Defined Gross Revenues, less League-wide Projected Benefits, divided by the number of Teams playing in the NFL during such year; (2) in the 2003 League Year, 64.25% of the Projected Defined Gross Revenues, less League-wide Projected Benefits, divided by the number of Teams playing in the NFL during such year; (3) in the 2004 League Year, 64.75% of the Projected Defined Gross Revenues, less League-wide Projected Benefits, divided by the number of Teams playing in the NFL during such year; (4) in the 2005 League Year, 65.5% of the Projected Defined Gross Revenues, less League-wide Projected Benefits, divided by the number of Teams playing in the NFL during such year; and (5) in the 2006 League Year, 64.5% of the Projected Defined Gross Revenues, less League-wide Projected Benefits, divided by the number of Teams playing in the NFL during such year. Notwithstanding the foregoing, the NFLPA or the NFL may, by providing written notice on or before December 1, 2004, move one half of a percentage point from the 2005 League Year to the 2006 League Year so that the Salary Cap in each of the 2005 and 2006 League Years shall be 65% of the Projected Defined Gross Revenues, less League-wide Projected Benefits, divided by the number of Teams playing in the NFL during that year.
* Extension Agreement 1/8/02
* Wherever the parties have agreed that a difference in the Salary Cap is to be carried over into a future League Year (e.g., Article XXIV, Section 10(a)(ii)), if the number of Clubs in the NFL changes from the League Year in which the Salary Cap difference originated to the League Year in which it will be applied, the amount of the difference will be adjusted to reflect the different number of Clubs in the NFL.
* Side Letter 10/20/98
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(b) The foregoing Salary Cap amounts shall be adjusted as follows:
(i) The actual dollar amount of the Salary Cap shall not be less than the actual dollar amount of any Salary Cap in effect during the preceding League Year; provided, however, that at no time shall the Projected Benefits, plus the amount of the Salary Cap multiplied by the number of Teams in the NFL, exceed 70% of the Projected Defined Gross Revenues.
(ii) If the total Player Costs of the NFL Teams during any League Year in which the Salary Cap is in effect falls below:
(1) 59% of actual Defined Gross Revenues, then the Salary Cap percentage for the next League Year shall be increased by 1% of Projected Defined Gross Revenues;
(2) 58% of actual Defined Gross Revenues, then the Salary Cap percentage for the next League Year shall be increased by 2% of Projected Defined Gross Revenues;
(3) 57% of actual Defined Gross Revenues, then the Salary Cap percentage for the next League Year shall be increased by 3% of Projected Defined Gross Revenues;
(4) 56% of actual Defined Gross Revenues, then there shall be no Salary Cap for the next League Year or any succeeding League Year unless and until the Salary Cap again becomes effective in accordance with Section 2 of this Article.
(c) If, by January 15, 2005, no extension of the term of this Agreement has been agreed to by the parties and the 2006 League Year is then scheduled to be the Final Capped Year, Article XXIV, Section 4(b)(i) shall not apply to the 2006 League Year. If, by January 15, 2005, the parties have agreed to extend the term of this Agreement, so that the 2006 League Year will not be the Final Capped Year, Article XXIV, Section 4(b)(i) shall continue to apply to the 2006 League Year and all Capped Years of any extended term. An example reflecting application of Article XXIV, Section 4(b)(i), if such provision were to apply in the 2006 League Year, is annexed hereto as Exhibit O.
(d) Reasonable security expenses incurred at both the Club and League level the prior League Year, to the extent that they exceed such expenses for the 2000 League Year (plus 5% each year for inflation for such expenses), shall be multiplied by the Salary Cap percentage for the applicable League Year, and the resulting amount shall be deducted from the calculation of the Salary Cap, up to a maximum of $250,000 per Club in any League Year, with no carryover into future League Years. For each such League Year, the Management Council shall present to the NFLPA a reasonable estimate of such incremental expenses, and the parties shall negotiate in good faith to determine the appropriate deduction.
(e) (i) For each Capped Year, if the percentage resulting from the "Cash Salary" paid to players (as defined below) that League Year, divided by DGR for that League Year, averaged for that League Year and the prior two League Years (i.e., three-year rolling average), exceeds 71.5%, the NFL will receive a Salary Cap Credit equal to the difference in these percentages multiplied by the amount of DGR for that League Year. The credit shall be used in the Capped Year immediately following the League Year in which the credit arose (subject to any application of Article XXIV, Section 4(b)(i)), but any unused credit can be carried over to future Capped Years (subject to any application of Article XXIV, Section 4(b)(i)). For example, if the rolling average calculated in a given League Year is 72.5% and DGR for that League Year is $3.2 billion, the amount of the Salary Cap Credit arising from that League Year would be equal to a total of $32 million (i.e., $1 million per team if there are 32 teams in the NFL).
(ii) "Cash Salary" for purposes of this subparagraph is the sum of total Paragraph 5 amounts earned by players (applying the valuation rules which apply to deferred salary specified in Article XXIV, Section 7(a)(ii)), signing bonus amounts paid or committed (including amounts treated as signing bonus pursuant to this Agreement), incentives that have been earned and paid, or earned and committed to be paid to players (applying the valuation rules which apply to deferred salary specified in Article XXIV, Section 7(a)(ii)), grievances settled, termination pay, injury settlements, Salary advances that were not included in Paragraph 5, and anything else paid or provided to players during that League Year that would be valued under the Salary Cap (e.g., the fair market value of automobiles gifted to players).
(iii) The Cash Salary percentages shall be deemed to be 71.6% for the 1999 League Year and 68.3% for the 2000 League Year.
* Extension Agreement 1/8/02
Section 5. Minimum Team Salary:
With respect to each League Year for which a Salary Cap is in effect, there shall be a guaranteed Minimum Team Salary of 56% of Projected Defined Gross Revenues, less League-wide Projected Benefits, divided by the then current number of Teams in
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the NFL. Each Team shall be required to have a Team Salary of at least the Minimum Team Salary at the end of each League Year.
* Extension Agreement 1/8/02 [prior League Year percentages omitted]
(b) Nothing contained herein shall preclude a Team from having a Team Salary in excess of the Minimum Team Salary, provided it does not exceed the Salary Cap.
(c) Any shortfall in the Minimum Team Salary at the end of a League Year shall be paid, on or before April 15 of the next League Year, by the Teams having such shortfall, directly to the players who were on such Teams' roster at any time during the season, pursuant to reasonable allocation instructions of the NFLPA.
(d) If the NFL agrees, or a judgment or award is entered by the Special Master, that a Team has failed by the end of the then current League Year to make the payments required to satisfy a Team's obligations to pay the Minimum Team Salary required by this Agreement, then, in the event the Team fails promptly to comply with such agreement, judgment or award, the NFL shall make such payment on behalf of that Team (such funds to be paid as salary directly to the players on such Team at the direction of and pursuant to the reasonable allocation instructions of the NFLPA).
Section 6. Computation of Team Salary: During any League year in which the Salary Cap is in effect, all of the following amounts shall be included every day in determining a Team’s Team Salary:
(a) Player Contracts. Subject to the rules below in Section 7 of this Article, all amounts the Team has paid or is obligated to pay as set forth in all Player Contracts of current and former players covering a particular League Year, including exercised, options, shall be included in Team Salary.
(b) Tenders.
(i) Drafted Rookies’ Salaries shall be tendered automatically at the Rookie Minimum Active List Salary as of the day of the Draft and shall be included in Team Salary until (1) the player is signed, (2) the Team’s rights are relinquished through waivers, or (3) the Tuesday following the tenth week of the regular season (if the player is unsigned).
(ii) For players with less than three Accrued Seasons whose contracts have expired, the Minimum Active List Salary will be included in Team Salary when tendered until the player is signed, or the Team’s rights are relinquished.
(iii) For players who are Restricted Free Agents, the Qualifying Offer will be included in Team Salary when tendered until the player is signed, the Qualifying Offer is withdrawn, or a “June 1 tender” (which may be made on or before June 1) is made. If the player is unsigned and the Team makes a June 1 tender or June 15 tender, such tender will be included until the player is signed, the Team’s rights are relinquished, or the Tuesday following the tenth week of the regular season (if the player is unsigned).
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(iv) For players who are Unrestricted Free Agents, the June 1 tender, if made, will be included in Team Salary as of July 15 and thereafter until the player is signed, the tender is withdrawn, the Team’s rights are relinquished or extinguished, or the Tuesday following the tenth week of the regular season (if the player is unsigned).
(v) For Transition Players and Franchise Players, the tender will be included in Team Salary when made until the player is signed, the tender is withdrawn, the Team’s rights are relinquished, or the Tuesday following the tenth game of the regular season (if the player is unsigned).
(vi) All Offer Sheets will be included in Team Salary when tendered until the player is signed to a Player Contract by any NFL Team, or the Offer Sheet is withdrawn.
(c) Practice Squad Contracts. Any Practice Squad contract Salaries shall be included in Team Salary.
(d) Termination Pay. Any type of Termination Pay liability will be included in Team Salary at the time the player is released, except to the extent the Team is relieved of any such liability.
(e) Grievances. When a player salary grievance is filed against a Team, 50% of the amount claimed (or, for a player whose contract qualifies under Article XXXVIII-A, 50% of the player's Salary Cap count, prorated to reflect the number of weeks remaining in the regular season) will be counted in Team Salary until the grievance is resolved or until the end of the League Year, whichever comes first; at the end of the League Year, if any grievances have been settled or awards have been made, if the net total grievance amounts paid by the Team are more than the original 50% attributions and put the Team over the Salary Cap, the excess will be deducted from the Team's Salary Cap in the following League Year; if the net total grievance amounts paid are less than the original 50% attributions and the Team finishes the season at the Salary Cap or below the Salary Cap by less than the amount of the unawarded attributions, the difference will be added to the Team's Salary Cap for the following League Year. If an award or settlement is made for a grievance in a League Year after the grievance was filed, and the grievance amount paid is more than the original 50% attribution, the excess shall be included in Team Salary when paid; if the grievance amount is less than the original 50% attribution, the difference shall be deducted from Team Salary when the award is made.
* Extension Agreement 1/8/02
(f) Expansion Bonuses. Except as set forth in Article XXXI (Expansion), any expansion bonuses paid to players shall be included in Team Salary.
(g) Other Amounts. Any other Salary not listed above paid to players shall be included in Team Salary.
Section 7. Valuation of Player Contracts: Notwithstanding any provision in a Player Contract to the contrary or when such payments are actually made, the following rules shall apply in determining the amount of a player’s Salary that is to be included in Team Salary in a particular League Year for purposes of the Salary Cap:
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(a) Paragraph 5.
(i) The highest applicable Salary set forth in Paragraph 5 of the NFL Player Contract shall be included in Team Salary in the year earned, except that, between March 1 and the first day of the regular playing season, only the following amounts from Paragraph 5 shall be included for players whose Player Contracts are not among the Team’s 51 highest valued Player Contracts, tenders and Offer Sheets (as determined under this Section 7):
(1) Any amount that exceeds the Minimum Active/Inactive List Salary for Undrafted Rookie Free Agents; and
(2) Any amount that exceeds twice the applicable Minimum Active/Inactive List Salary for all other players.
(ii) Deferred Salary. Any Paragraph 5 Salary to be earned in a particular year but not to be paid until after the next League Year shall be considered “Deferred Salary” and will be included in Team Salary during the League Year earned at its present value based on the Treasury Bill rate published in The Wall Street Journal on March 1 in the year earned. Salary to be paid any time before the end of the League Year after it is earned shall not be considered Deferred Salary and will be included fully in the Team’s Salary during the year earned.
(b) Signing Bonuses.
(i) Proration. The total amount of any signing bonus shall be prorated over the term of the Player Contract in determining Team and Player Salary, except that:
(1) Signing bonuses agreed to in a Capped Year may not be prorated more than three years beyond the Final Capped Year (notwithstanding the foregoing, signing bonuses agreed to in Player Contracts approved by the Commissioner on or after agreement by the parties with respect to transition rules for proration in the 1998 League Year, but prior to court approval, and in no event earlier than June 30, 1998, may not be prorated more than six years, and signing bonuses agreed to in the 1999 or 2000 League Years may not be prorated more than seven years). Notwithstanding the foregoing, signing bonuses agreed to in the 2002-03 League Years, or in the 2001 League Year after the last game of the regular season, may not be prorated more than seven years; signing bonuses agreed to in the 2001 League Year, prior to the last game of the regular season, may not be prorated more than six years.
* Extension Agreement 1/8/02
(2) Any contract year in which the player has the right to terminate based upon events within his sole control shall not be counted as a contract year for purposes of proration. In the event the NFL and the NFLPA cannot agree upon whether an option is within the player’s sole control, such issue shall be resolved by the Impartial Arbitrator.
* With respect to the proration of signing bonuses for Player Contracts entered into by Rookie players in which the player has the right to terminate based solely upon reporting, making the roster and/or playtime, such conduct shall automatically be deemed “within his sole control,” as set forth in Article X, Paragraph G.2.(a)(ii) of the Stipulation
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and Settlement Agreement and in Article XXIV, Section 7(b)(i)(2) of the Collective Bargaining Agreement, unless the exercise of the right to terminate is also conditioned upon the following playtime requirements: (1) for players drafted in the first round, at least 35% of the plays if the triggering condition occurs in the first year of the Player Contract, and at least 45% of the plays if in any subsequent year; (2) for all other Rookie players, at least 15% of the plays if the condition occurs in the first year of the Player Contract, and at least 30% of the plays if in any subsequent year. The playtime requirements set forth above do not affect the signing bonus allocation for any contract entered into by players other than Rookies.
*Side Letter 9/21/93: Sec. 15
* [A]ny multi-year Player Contract not unconditionally approved by the Commissioner as of the date hereof, other than any multi-year Player Contract executed in the last Capped Year of this Agreement, that extends from a Capped Year into any Uncapped Year (hereinafter “Subject Contract”). For purposes of determining Team Salary, if (i) the sum of the player’s Paragraph 5 Salary, roster bonuses that are based upon the player making any of the Club’s roster categories without limitation, and reporting bonuses during all Capped Years of the Subject Contract (but, if there are fewer than three remaining Capped Years, during the first three years of the Subject Contract) in the aggregate less than (ii) the portion of the Subject Contract’s signing bonus that would be allocated to those League Years if the signing bonus were prorated equally over the term of the Subject Contract, then: the difference between the amounts calculated pursuant to (ii) and (i) of this sentence, up to 50% of the portion of the signing bonus that would otherwise be allocated to the Uncapped Years (the “Difference”), shall be deducted in equal portions from those Uncapped Years and reallocated1 in equal portions over the Capped Years of the Subject Contract (or, if there are fewer than three Capped Years within the term of the Subject Contract, over the first three years of the Subject Contract). For purposes of this Paragraph, a renegotiation shall be treated as if it is an entirely new Player Contract. Notwithstanding the above, any Subject Contract executed prior to November 15, 1995 for which there is a Difference as a result of the calculation set forth above
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shall have the 1995 portion of such Difference allocated to 1995 Team Salary to the extent of the Club’s current and any future Room during the 1995 regular season (except such Room that results from the termination or renegotiation of a 1995 Player Contract after October 30, 1995), with the balance to be allocated to the 1996 League Year. Further, any Subject Contract executed between November 15, 1995 and the end of the 1995 League Year shall have the 1995 portion of any Difference allocated to the 1996 League Year.
*Side Letter 11/1/95: Sec. 1
(3) If a Player Contract provides for an increase in Salary upon the assignment of such contract to another NFL Team, such increase shall be included in the player’s Salary upon such assignment and be attributable to the Team paying the bonus.
* For the purposes of the Salary Cap, any signing bonus given in connection with a contract extension entered into before the expiration of the player’s existing contract will be prorated over the remaining years of the unexpired contract together with its extension. The parties agree that, pursuant to the Collective Bargaining Agreement, the player shall always have the right to receive such a signing bonus at the time that the extension is executed, unless the player expressly agrees in the contract to defer payment of the extension bonus, in which case only the present value of the deferred payment, calculated in accordance with the method set forth in Article X, Paragraph G.1. (b) of the Stipulation and Settlement Agreement and Article XXIV, Section 7(a)(ii) of the Collective Bargaining Agreement, shall be prorated (unless the extension is executed within one year of the execution of the contract being extended, in which case the gross amount of the extension bonus shall be prorated).
*Side Letter 9/21/93: Sec. 17
(4) If either party hereto has canceled the extension of this Agreement as set forth in Article LXI (Extension of Agreement), then signing bonuses agreed to after the date of such cancellation shall be prorated using the 2002 League Year as the Final Capped Year.
*Extension Agreement 2/25/98
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(ii) Acceleration.
(1) For any player removed from the Team’s roster on or before June 1, any unamortized signing bonus amounts will be included in Team Salary for such League Year. If such acceleration puts a Team over the Salary Cap, the Team will have seven days to conform with the Salary Cap, but may not sign any players until there is Room to do so under the Salary Cap.
(2) For any player removed from the Team’s roster after June 1, any unamortized signing bonus amounts for future years will be included fully in Team Salary at the start of the next League Year.
* During any League Year immediately preceding an Uncapped Year, the provisions relating to acceleration of unamortized signing bonuses applicable on or before June 1 of that League Year shall apply during that League Year after June 1.
*Side Letter 11/1/95: Sec. 2
(3) In the event that a player who has had a signing bonus allocated over the years of his Player Contract is traded, or whose Contract is assigned to another team pursuant to the NFL’s waiver procedure, then such signing bonus shall be accelerated as in subsection (ii)(1) above and the assignee Team’s Team Salary will not include any portion of the signing bonus.
(4) Any contract year that the player has the right to terminate based upon a contingency shall count as a contract year for purposes of proration until the contingency is fulfilled, at which time any amounts attributed to such year shall be accelerated and included immediately in Team Salary. To the extent that such acceleration puts the Team over its Salary Cap, the difference shall be deducted from its Salary Cap for the following year.
* With respect to a Player Contract in which the player has one or more rights to terminate based upon one or more not “likely to be earned” incentives and the player also being on the roster at a subsequent time, no acceleration shall occur pursuant to Article XXIV, Section 7(b)(ii)(4) of the CBA until both the incentive(s) and the roster precondition(s) have been satisfied.
*Side Letter 10/21/96: Sec. 5
(5) The unamortized portion of any signing bonus contained in an NFL Player Contract that is renegotiated to reduce the number of years of such Player Contract shall be included, to the extent attributable to such reduced year or years, in Team Salary at the time of the renegotiation.
(iii) Prior Signing Bonuses. All signing bonuses from League Years prior to 1993 will be prorated over the term of the original Player Contracts
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and included in Team Salary in the 1993 League Year and thereafter.
(iv) Amounts Treated as Signing Bonuses. For purposes of determining Team Salary under the foregoing, the term “signing bonus” shall include:
(1) Any amount specifically described in a Player Contract as a signing bonus;
(2) Any guaranteed reporting bonus;
(3) Any consideration, when paid, or guaranteed, for option years, contract extensions, contract modifications, or individually negotiated rights of first refusal;
(4) Any option buyout amount, when paid or guaranteed; and
(5) In the event that a Player Contract calls for a Salary in the second year of such Contract that is less than half the Salary called for in the first year of such Contract, the difference between the Salary in the second contract year and the first contract year shall be treated as a signing bonus.
* In a contract signed after the start of training camp, a reporting bonus for that season will be counted as a signing bonus. In a contract signed after the last pre-season game, a roster bonus for that season will be counted as a signing bonus.
*Side Letter 9/21/93: Sec. 18
* Any salary advance paid on a guaranteed basis will be counted as a signing bonus.
*Side Letter 9/21/93: Sec. 19
* For purposes of the Salary Cap and Entering Player Pool, any guaranteed bonus tied to workouts shall be treated as a Signing Bonus.
*Side Letter 6/23/93: Sec. 3
* For purposes of the Salary Cap and Entering Player Pool, any salary advance which a player is not obligated to re-pay shall be treated as a Signing Bonus.
*Side Letter 6/23/93: Sec. 4
* For purposes of the Salary Cap and Entering Player Pool, any roster or reporting bonus which is earned or paid before the start of the Club’s pre-season training camp shall be treated as a signing bonus.
*Side Letter 6/23/93: Sec. 6
* Except as set forth in [the] Paragraph [to follow], the full non-guaranteed amount of any Salary advance, off-season
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work-out bonus, off-season roster bonus, or off-season reporting bonus shall be included in Team Salary only in the League Year in which it is earned by the player, without any pro-ration. For purposes of this paragraph only, “guaranteed” means Salary that is fully guaranteed, prior to being earned, for skill, for injury, and regardless of any termination of the contract by the Club. The definition of “guaranteed” set forth above shall not affect Salary Cap accounting for any other purpose.
*Side Letter 10/21/96: Sec. 1
* With respect to any Player Contract, or any renegotiation or extension of a Player Contract, that is executed in the Final Capped Year, each of the following shall be treated as a signing bonus, at the time of execution, if it is to be earned or paid to the player in the Final League Year (which is an Uncapped Year): (a) any Salary advance which the player is not and cannot be obligated to repay; (b) any off-season workout bonus that is contingent upon the player’s participation in less than 32 days of the Club’s off-season work-out program; (c) any off-season roster bonus; and (d) any off-season reporting bonus.
*Side Letter 10/21/96: Sec. 2
* [A]ny bonus to be paid to a player solely for fulfilling his obligations to play under his Player Contract without seeking to renegotiate and/or “holding out” (i.e., a “completion bonus”), and which bonus is otherwise guaranteed for skill and injury, shall be considered to be a “signing bonus” under Article X of the Settlement Agreement and Article XXIV of the CBA, except that the amount of any such completion bonus shall be calculated at its present value, computed at the Treasury Bill rate published in The Wall Street Journal on March 1 of the League Year in which the Player Contract is executed. Further, if any event occurs which extinguishes the player’s right to receive such completion bonus, any amount of the bonus that has previously been included in Team Salary shall be immediately added to the Team’s Salary Cap for the current League Year, if such event occurs prior to June 1, or for the next League Year, if such event occurs after such date, with the remainder of the bonus that has been allocated to Team Salary for future League Years immediately extinguished.
*Side Letter 1/18/94: Sec. 3
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* Any relocation bonus which is individually negotiated between a player and a Club shall be treated as a signing bonus.
*Side Letter 5/24/95: Sec. 9
* For each League Year prior to the Final Capped Year, if a Club and a player renegotiate or extend a contract and increase the player’s Salary for the current League Year, the increase will be counted as Salary for that League Year if the NFL Management Council receives, prior to 4:00 p.m. (New York Time) on the Monday of the tenth week of the regular season, notice of the salary terms of such an executed extended or renegotiated contract. In any other circumstance prior to the Final Capped Year, the increase in Salary will be treated as a signing bonus that is allocated over the remaining years of the Player Contract (including the “current” year of that contract) to the extent that such allocation is permitted by the Settlement Agreement and the CBA. The then-existing provisions of the CBA will govern the Salary Cap valuation of such a renegotiation or extension in the Final Capped Year. The parties have reserved their respective positions regarding the CBA’s requirements for any such renegotiation or extension in the Final Capped Year.
*Side Letter 5/24/95: Sec. 14
as amended Side Letter 5/13/99
(v) Credit for Signing Bonuses Refunded. In the event that a Team receives a refund from the player of any previously paid portion of a signing bonus, or the Team fails to pay any previously allocated portion of a signing bonus, such amount as has previously been included in Team Salary shall be added to the Team’s Salary Cap for the next League Year.
(c) Incentives.
(i) Any and all incentive amounts, including but not limited to performance bonuses, shall be included in Team Salary if they are “likely to be earned” during such League Year based upon the player’s and/or Team’s performance during the prior year. In the case of a Rookie, or a Veteran who did not play during the prior season, in the event that the NFL and the NFLPA cannot agree as to whether such performance bonus is “likely to be earned,” such disputes shall be referred to the Impartial Arbitrator. Any incentive within the sole control of the player (e.g., non‑guaranteed reporting bonuses, off‑season workout and weight bonuses) shall be deemed “likely to be earned.”
(ii) At the end of a season, if performance bonuses actually earned resulted in a Team’s paying Salary in excess of the Salary Cap, then the
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amount by which the Team exceeded the Salary Cap as a result of such actually paid performance bonuses shall be subtracted from the Team’s Salary Cap for the next League Year.
(iii) At the end of a season, if performance bonuses previously included in a Team’s Team Salary but not actually earned exceed performance bonuses actually earned but not previously included in Team Salary, an amount shall be added to the Team’s Salary Cap for the next League Year equaling the amount, if any, by which such overage exceeds the Team’s Room under the Salary Cap at the end of a season.
* Any team performance will be automatically deemed to be “Likely to be earned” if the Team met or exceeded the specified performance during the prior League Year, and will be automatically deemed to be “not likely to be earned” if the Team did not meet the specified performance during the prior League Year.
*Side Letter 2/22/96: Sec. 1
* Any incentive bonus that depends on team performance in any category not identified in Exhibit A hereto automatically will be deemed “likely to be earned.”
*Side Letter 9/21/93: Sec. 8
* Any incentive bonus that depends on a player’s individual performance in any category not identified in Exhibit B hereto automatically will be deemed “likely to be earned.” Any incentive bonus that depends on a player’s individual performance in categories other than those used to assess performance at the player’s primary position automatically will be deemed “likely to be earned.”
*Side Letter 9/21/93: Sec. 11
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(EXHIBIT A)
TEAM INCENTIVES
OFFENSE
DEFENSE
SPECIAL TEAMS
Points scored by
Points allowed by
Own punt return
offense
defense
average
Touchdowns scored
Touchdowns allowed
Own kickoff return
by offense
by defense
average
Total offense
Total defense
Opposition punt
(net yards)
(net yards)
return average
Opposition kickoff
return average
Average net yards
Average net yards
gained per rushing play
given up per rushing play
Average net yards
Average net yards
gained per passing
given up per passing
play
play
Sacks allowed
Sacks
Passing % completed
Interceptions
ALL
Wins
Playoffs
Conference Championship
Super Bowl
Touchdowns on returns
and recoveries
Net difference takeaways/giveaways
*Side Letter 9/21/93: Exhibit A
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(EXHIBIT B)
INDIVIDUAL INCENTIVES
RUSHING
Total yards
Average yards
(100 attempts)
Touchdowns
PASSING
Passer rating
(224 attempts)
Completion percentage
(224 attempts)
Interception percent
(224 attempts)
Total yards
Yards per pass
(224 attempts)
Touchdown passes
RECEIVING
Total receptions
Total yards
Average yards
(32 receptions)
Touchdowns
DEFENSE
Interceptions
Interception return yards
Touchdowns on interception
returns
Opponent fumble recoveries
Opponent fumble return yards
Touchdowns on opponent
fumble returns
Sacks
PUNT RETURNS
Total yards
Average (20 returns)
Touchdowns
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(EXHIBIT B)
INDIVIDUAL INCENTIVES
KICKOFF RETURNS
Total yards
Average (20 returns)
Touchdowns
PUNTING
Gross average (40 punts)
Net average (40 punts)
Inside 20-yard line
PLACE KICKING
Total points
Field goals
Field goal percentage
(16 attempts)
Field goal percentage
0-19 yards (4 attempts)
Field goal percentage
20-29 yards (4 attempts)
Field goal percentage
30-39 yards (4 attempts)
Field goal percentage
40-49 yards (4 attempts)
Field goal percentage
50 yards or longer (3 attempts)
OTHERS
Roster bonuses
Reporting bonuses
Playtime bonuses
(excluding special teams)
Special teams playtime
*Side Letter 9/21/93: Exhibit B
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
CATEGORY PERCENT COUNTED
ROSTER BONUSES
(regular season)
All Drafted 100%
Undrafted 30%
ROSTER BONUSES
(pre-season)
All Players 100%
PLAYING TIME ROUNDS 1-3
Up to 33% 100%
34% - 75% 75%
76% - 90% 50%
91% - 100% 25%
ROUNDS 4-8
Up to 25% 100%
26% - 33% 75%
34% - 50% 50%
51% - 75% 25%
76% - 100% 10%
UNDRAFTED
Up to 15% 100%
16% - 25% 75%
26% - 50% 50%
51% - 75% 25%
76% - 100% 10%
All percentages will round to the nearest whole
percentage (e.g., .05 is rounded to 1.0)
SPECIAL TEAMS ROUNDS 1 - 3 100%
PARTICIPATION ROUNDS 4 - 8 66%
UNDRAFTED 50%
HONORS ROUNDS 1 - 2
(First or Second Team)* All-Rookie 100%
All NFL, Pro Bowl 5%
All Conference 10%
ALL OTHERS
*See Media List on All-Rookie 15%
pages 122-123
All Conference 5%
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
RUSHING
Total Yards ROUNDS 1 - 3
Rushing Up to 150 yards 100%
151 - 350 yards 75%
351 - 500 yards 66%
501 - 700 yards 33%
701 yards or more 0%
ALL OTHERS
Up to 100 yards 100%
101 - 350 yards 66%
351 - 650 yards 25%
651 yards or more 0%
Average Yards ROUNDS 1 - 3
(100 attempts) Up to 3.74 100%
3.75 - 4.0 66%
4.01 - 4.49 33%
4.5 or more 0%
ALL OTHERS
Up to 3.74 100%
3.75 - 4.0 50%
4.01 - 4.49 25%
4.5 or more 0%
Touchdowns ROUNDS 1 - 3
Up to 4 100%
5 - 7 66%
8 - 11 33%
12 or more 0%
ALL OTHERS
Up to 4 100%
5 - 7 50%
8 - 11 25%
12 or more 0%
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
PASSING
Passer Rating ROUNDS 1 - 3
(224 attempts) 50 rating or less 100%
51.00 - 75.00 66%
76.00 - 90.00 50%
90.00 - 100.00 33%
100.01 or more 0%
ALL OTHERS
50.00 or less 100%
51.00 - 75.00 66%
76.00 - 90.00 25%
90.01 or more 0%
Completion Percentage ROUNDS 1 - 3
(224 attempts) Up to 52% 100%
52.1 - 56% 66%
56.1 - 59% 33%
59.01% or more 0%
ALL OTHERS
Up to 52% 100%
52.1 - 56% 50%
56.1 - 59% 25%
59.01% or more 0%
Interception Percentage ROUNDS 1 - 3
(224 attempts) 3.0% or more 100%
2.7 - 2.9% 66%
2.1 - 2.6% 33%
2.0% or less 0%
ALL OTHERS
3.0% or more 100%
2.7 - 2.9% 50%
2.1 - 2.6% 25%
2.0% or less 0%
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
Total Yards ROUNDS 1 - 3
Passing Up to 500 yards 100%
501 - 700 yards 75%
701 - 900 yards 50%
901 - 1,600 yards 25%
1,601 yards or more 0%
ALL OTHERS
Up to 400 yards 100%
401 - 600 yards 75%
601 - 800 yards 50%
801 - 1,200 yards 25%
1,201 yards or more 0%
Yards Per Pass ROUNDS 1 - 3
(224 attempts) Under 6 100%
6.0 - 7 66%
7.1 - 8 33%
8.1 - 9 10%
9.1 or more 0%
ALL OTHERS
Under 6 100%
6.0 - 7 50%
7.1 - 8 25%
8.1 - 9 10%
9.1 or more 0%
Touchdown Passes ROUNDS 1 - 3
Under 11 100%
12 - 16 66%
17 - 23 33%
24 - 29 10%
30 or more 0%
ALL OTHERS
Under 11 100%
12 - 16 50%
17 - 23 25%
24 - 29 10%
30 or more 0%
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
RECEIVING
Total Receptions ROUNDS 1 - 3
Up to 20 catches 100%
21 - 30 catches 75%
31 - 35 catches 50%
36 - 40 catches 25%
41 catches or more 0%
ALL OTHERS
Up to 10 catches 100%
11 - 35 catches 50%
36 - 40 catches 25%
41 catches or more 0%
Total Yards Receiving ROUNDS 1 - 3
Up to 200 yards 100%
201 - 300 yards 75%
301 - 400 yards 50%
401 - 800 yards 25%
801 yards or more 0%
ALL OTHERS
Up to 150 yards 100%
151 - 250 yards 75%
251 - 350 yards 50%
351 - 700 yards 25%
701 yards or more 0%
Average Yards ROUNDS 1 - 3
(32 receptions) Up to 11.5 100%
11.6 - 14.5 75%
14.6 - 16.5 50%
16.6 - 18.5 25%
18.6 or more 0%
ALL OTHERS
Up to 11.5 100%
11.6 - 14.5 66%
14.6 - 16.5 33%
16.6 - 18.5 10%
18.6 or more 0%
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
Receiving Touchdowns ROUNDS 1 - 3
Up to 4 100%
5 - 7 66%
8 - 11 33%
12 or more 0%
ALL OTHERS
Up to 4 100%
5 - 7 50%
8 - 11 25%
12 or more 0%
TOTAL OFFENSE
Total Yards ROUNDS 1 - 3
Up to 500 yards 100%
501 - 700 yards 75%
701 - 900 yards 50%
901 - 1,600 yards 25%
1,601 yards or more 0%
ALL OTHERS
Up to 400 yards 100%
401 - 600 yards 75%
601 - 800 yards 50%
801 - 1,200 yards 10%
1,201 yards or more 0%
Scoring ROUNDS 1 - 3
2 - 28 points 100%
29 - 65 points 50%
66 - 75 points 25%
76 points or more 0%
ALL OTHERS
2 - 28 points 100%
29 - 55 points 50%
56 - 75 points 10%
76 points or more 0%
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
DEFENSE
Interceptions ROUNDS 1 - 3
1 - 5 100%
6 - 10 50%
11 or more 0%
ALL OTHERS
1 - 3 100%
4 - 6 33%
7 or more 0%
Interception ROUNDS 1 - 3
Return Yards 0 - 85 100%
86 - 150 66%
151 - 190 33%
191 or more 0%
ALL OTHERS
0 - 65 100%
66 - 85 50%
86 - 110 25%
111 or more 0%
Touchdowns on ALL
Interception Returns 1 100%
2 50%
3 or more 0%
Opponent Fumble ALL
Recoveries 1 - 2 100%
3 - 4 50%
5 or more 0%
Opponent Fumble ROUNDS 1 - 3
Return Yards 0 - 40 100%
41 - 65 66%
66 - 80 33%
81 or more 0%
ALL OTHERS
0 - 30 100%
31 - 55 50%
56 - 75 25%
76 or more 0%
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
Touchdowns on ALL
Opponent Fumble 1 100%
Returns 2 50%
3 or more 0%
Sacks ROUNDS 1 - 3
.5 - 4 sacks 100%
4.5 - 6 sacks 50%
6.5 - 8 sacks 25%
8.5 sacks or more 0%
ALL OTHERS
.5 - 3 sacks 100%
3.5 - 6 sacks 50%
6.5 - 8 sacks 25%
8.5 sacks or more 0%
PUNT RETURNS
Total Yards ROUNDS 1 - 3 100%
ALL OTHERS
0 - 224 100%
225 - 349 33%
350 or more 0%
Average (20 returns) ROUNDS 1 - 3 100%
ALL OTHERS
0 - 7.9 100%
8.0 - 10.9 33%
11.0 or more 0%
Touchdowns ROUNDS 1 - 3 100%
ALL OTHERS
1 33%
2 or more 0%
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
KICKOFF RETURNS
Total Yards ROUNDS 1 - 3 100%
ALL OTHERS
0 - 599 100%
600 - 649 33%
650 or more 0%
Average ROUNDS 1 - 3 100%
(20 returns) ALL OTHERS
0 - 19.9 100%
20.0 - 21.9 33%
22.0 or more 0%
Touchdowns ROUNDS 1 - 3 100%
ALL OTHERS
1 33%
2 or more 0%
PUNTING
Gross Average ROUNDS 1 - 3 100%
(40 punts) ALL OTHERS
0 - 42.4 100%
42.5 - 43.9 33%
44.0 or more 0%
Net Average ROUNDS 1 - 3 100%
(40 punts) ALL OTHERS
0 - 35.9 100%
36.0 - 37.9 33%
38.0 or more 0%
Inside 20-yard line ROUNDS 1 - 3 100%
ALL OTHERS
0 - 19 100%
20 - 23 33%
24 or more 0%
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
PLACE KICKING
Total Points ROUNDS 1 - 3
Up to 86 points 100%
87 - 95 points 75%
96 - 104 points 50%
105 - 113 points 10%
114 points or more 0%
ALL OTHERS
Up to 75 points 100%
76 - 90 points 66%
91 - 99 points 33%
100 - 109 points 10%
110 points or more 0%
Field Goals ROUNDS 1 - 3 100%
ALL OTHERS
0 - 19 100%
20 - 26 33%
27 or more 0%
Field Goal Percentage ROUNDS 1 - 3 100%
(16 attempts) ALL OTHERS
0 - 75% 100%
75.1 - 80% 33%
80.1 - 100% 0%
Field Goal Percentage ALL 100%
0-19 yards (4 attempts)
Field Goal Percentage ROUNDS 1 - 3 100%
20 - 29 yards ALL OTHERS
(4 attempts) 0 - 85% 100%
85.1 - 95% 33%
95.1 - 100% 0%
Field Goal Percentage ROUNDS 1 - 3 100%
30 - 39 yards ALL OTHERS
(4 attempts) 0 - 70% 100%
70.1 - 90% 33%
90.1 - 100% 0%
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ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
Field Goal Percentage ROUNDS 1 - 3 100%
40 - 49 yards ALL OTHER
(4 attempts) 0 - 55% 100%
55.1 - 70% 33%
70.1 - 100% 0%
Field Goal Percentage ROUNDS 1 - 3 100%
50 yards or longer ALL OTHERS
(3 attempts) 0 - 45% 100%
45.1 - 60% 33%
60.1 - 100% 0%
*Side Letters 4/27/93 & 4/27/94
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ENTERING PLAYER POOL INCENTIVES
* Team Leaders
a) If the incentive is written for leading the Club in any official League statistical category [assuming it is on Exhibit A or B], 0% will be counted.
b) If the incentive is written for any ranking other than first on the Club in any official League statistical category, 100% will be counted.
*Side Letter 4/27/93: Sec. 7
c) If the incentive is written for leading the team in kick returns or punt returns, and the player qualifies under the minimum standard established by the League for those statistical categories, the following percentages shall be counted:
ROUNDS 1 - 3 100%
ROUNDS 4 - 5 33%
ROUNDS 6 - 8 10%
ALL OTHERS 0%
*Side Letter 6/30/93: Sec. 16
* Each component of non-cumulative incentives is calculated individually, and only the highest component amount is counted. For example, an incentive clause for a 1st-round running back that provides for $10,000 for up to 150 yards or $20,000 for 151-350 yards is counted as $15,000. (This amount is arrived at by taking the greater of 100% of $10,000 or 75% of $20,000, which equals $15,000. Only the higher component amount of $15,000 is counted).
*Side Letter 4/27/93: Sec. 8
The following shall count at 100%:
* Any team statistic or team unit statistic, if the statistic was achieved in the prior season (based on prior season’s performance).
*Side Letter 4/27/93: Sec. 9
* Incentives within the sole control of the player (e.g., non-guaranteed reporting bonuses, workouts, weight clauses, etc.).
*Side Letter 4/27/93: Sec. 10
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*Any relocation or completion bonus.
*Side Letter 4/27/93: Sec. 11
*Any incentive not measured by official NFL statistics (i.e., hurries, tackles and assists) or incentives based on subjective standards.
*Side Letter 4/27/93: Sec. 12
* Any guaranteed salary or bonus.
*Side Letter 4/27/93: Sec. 13
* Any pre-season or off-season statistics.
*Side Letter 4/27/93: Sec. 14
* Any incentive based upon another player’s performance.
*Side Letter 4/27/93: Sec. 15
* Incentives based on leading the team in punting/kicking will be counted at 100%.
*Side Letter 6/30/93: Sec. 18
* If a rookie player has an incentive bonus for touchdowns, we will apply the rushing and receiving touchdowns likely to be earned rule and if a rookie non-kicker has a Total Points incentive, we will apply the total points likely to be earned levels for a rookie kicker to value the incentives.
*Side Letter 7/26/94
*HONORS AND RECOGNIZED MEDIA
VETERAN HONORS
PRO BOWL
1ST & 2ND ALL NFL
1ST & 2ND ALL CONFERENCE
SUPER BOWL MVP (ROZELLE TROPHY)
MVP-NFL
OFFENSIVE PLAYER OF YEAR — NFL OR CONF
DEFENSIVE PLAYER OF YEAR — NFL OR CONF
PLAYER OF YEAR — NFL OR CONF
VETERAN MEDIA
ASSOCIATED PRESS
UNITED PRESS INTERNATIONAL
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PRO FOOTBALL WEEKLY
PRO FOOTBALL WRITERS OF AMERICA
SPORTING NEWS
FOOTBALL NEWS
NEWSPAPER ENTERPRISE ASSOCIATION
FOOTBALL DIGEST
USA TODAY
COLLEGE & PRO FOOTBALL WEEKLY
ROOKIE HONORS (FIRST OR SECOND TEAM)
ROUNDS 1-2
ALL ROOKIE 100%
ALL NFL, PRO BOWL 5%
ALL CONFERENCE 10%
ALL OTHERS
ALL-ROOKIE 15%
ALL CONFERENCE 5%
ALL
ROOKIE OF YEAR — NFL OR CONF 0%
ROOKIE OF YEAR — OFFENSE — NFL 0%
ROOKIE OF YEAR — DEFENSE — NFL 0%
ROOKIE MEDIA
ASSOCIATED PRESS
UNITED PRESS INTERNATIONAL
PRO FOOTBALL WEEKLY
PRO FOOTBALL WRITERS OF AMERICA
NEWSPAPER ENTERPRISE ASSOCIATION
SPORTING NEWS
*Side Letter 9/25/95 & 4/27/93
ADDITIONAL INCENTIVE RULES FOR
VETERANS, ROOKIES, INDIVIDUALS AND TEAMS
* In determining the Salary of a Player Contract for purposes of the Salary Cap, any team performance-related incentive will be re-valued under the “likely to be earned” rules if the contract is assigned to a new team through trade or waiver.
*Side Letter 9/21/93: Sec. 1
* In determining the Salary of a Player Contract for purposes of the Salary Cap, any renegotiated contract will be re-valued at the time of the renegotiation. Thus, if at
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the time of the renegotiation, the conditions for an incentive bonus have already been satisfied, that bonus will be deemed “likely to be earned.” Any new or altered incentive bonuses renegotiated in a pre-existing contract after the start of the regular season in which they may be earned automatically will be deemed “likely to be earned” during that season.
*Side Letter 9/21/93: Sec. 2
* Other than as set forth in [the paragraph immediately following,] for purposes of the Salary Cap and Entering Player Pool, any incentive bonus to an offensive player that is based upon the defensive team’s or special team’s performance automatically will be deemed “likely to be earned.” Conversely, any incentive bonus to a defensive player that is based upon the offensive team’s or special team’s performance automatically will be deemed “likely to be earned.” Any incentive bonus based upon another player’s performance automatically will be deemed “likely to be earned.”
*Side Letter 9/21/93: Sec. 3
* For purposes of the Salary Cap and Entering Player Pool, any incentive bonus in a contract signed by a Rookie that is based upon special team performance automatically will be deemed “likely to be earned,” except for an incentive bonus to a Rookie kicker or Rookie punter that is based upon improvement in the performance of the kicking or punting team. Any incentive bonus to a player who is not a Rookie that is based upon special team performance automatically will be deemed “likely to be earned” unless the player played in at least 50% of his team’s special team plays in the previous season.
*Side Letter 9/21/93: Sec. 4
* For purposes of the Salary Cap and Entering Player Pool, any incentive bonus based on the team’s performance automatically will be deemed “likely to be earned” if it sets a minimum level of statistical performance that is equal to or lower than that achieved by the team finishing fifth from the bottom in the League in the applicable category during the previous season. For example, an incentive bonus based on a team winning at least a specified number of games will be evaluated by determining
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whether this number of wins was equal to or lower than that achieved by the team that was fifth from the bottom of the League in wins during the previous season. Conversely, any incentive bonus based on the team’s performance automatically will be deemed “not likely to be earned” if it sets a minimum level of statistical performance that is equal to or higher than that achieved by the team finishing fifth from the top of the League in the applicable category during the previous season.
*Side Letter 9/21/93: Sec. 5
* Any incentive bonus that is based upon the team achieving a particular ranking in its performance relative either to other teams in the League, or to other teams in its Conference, automatically will be deemed “likely to be earned” if it sets a ranking level equal to or lower than fifth from the bottom of the League or third from the bottom of the Conference, respectively. For example, an incentive bonus that is based on a team finishing 24th in the League in total offense will be deemed “likely to be earned” in a League consisting of 28 teams; similarly, an incentive bonus based on a team finishing 12th in its Conference will be deemed “likely to be earned” in a Conference consisting of 14 teams. Conversely, any incentive bonus that is based upon the team achieving a particular ranking in its performance relative either to other teams in the League, or to other teams in its Conference, automatically will be deemed “not likely to be earned” if it sets a ranking level equal to or higher than fifth from the top of the League or third from the top of the Conference, respectively.
*Side Letter 9/21/93: Sec. 6
*Any incentive bonus based on the team’s ranking in its Division automatically will be deemed “likely to be earned.”
*Side Letter 9/21/93: Sec. 7
*In any Player Contract signed by a Rookie, if more than three different team performance categories are included as incentives, all but the three incentives with the lowest dollar value automatically will be deemed “likely to be earned.” For Player Contracts signed by Rookies selected in rounds one and two of the NFL draft, any team
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performance bonus automatically will be deemed “likely to be earned” unless coupled with a playtime requirement of at least 35% of the plays for any team incentives that apply in the first year of any Rookie contract, and at least 45% of the plays for any team incentives that apply in any subsequent year of such a contract. For Player Contracts signed by all other Rookies, a team performance bonus automatically will be deemed “likely to be earned” unless coupled with a playtime requirement of at least 15% of the plays for any team incentives that apply in the first year of any Rookie contract, and at least 30% of the plays for any team incentives that apply in any subsequent year of such a contract. The provisions of this paragraph supplement and do not override [Paragraph 9] of the parties’ letter of agreement of April 27, 1993. The calculation of these playtime requirements shall exclude special teams plays.
*Side Letter 9/21/93: Sec. 9
* In any Player Contract signed by a player other than a Rookie, if more than three different team performance categories are included as incentives, covering the Final Capped Year or thereafter, all but the three incentives with the lowest dollar value automatically will be deemed “likely to be earned.” In addition, any team performance bonus for a player other than a Rookie covering the Final Capped Year or thereafter automatically will be deemed “likely to be earned” unless coupled with a playtime requirement equal to or greater than the player’s actual playtime during the year prior to the execution of the new Player Contract. If the latter requirement is satisfied, a determination of whether the incentive is “likely to be earned” will be made pursuant to Article X, Paragraph G.3.(a) of the Stipulation and Settlement Agreement and Article XXIV, Section 7(c)(i) of the Collective Bargaining Agreement. The calculation of these playtime requirements shall exclude special teams plays.
*Side Letter 9/21/93: Sec. 10
* Any incentive bonus that is stated in terms of a per play or per game occurrence automatically will be deemed “likely to be earned” to the extent the specified performance was achieved by the player (if an individual incentive) or by the team (if a team incentive) in the previous year. For Rookies, it will be based on 75% of the
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team leader on the Rookie’s team in the specified performance category in the previous year. If not initially counted as “likely to be earned,” such incentives shall be counted immediately towards the Salary Cap and Entering Player Pool when they are earned.
*Side Letter 9/21/93: Sec. 12
* Any incentive bonus to a kicker or punter for leading his team in any kicking or punting category automatically will be deemed “likely to be earned.” In a Player Contract signed by a Rookie quarterback who was drafted in the first round, any incentive bonus for leading his team in any quarterback category in his third NFL season or thereafter automatically will be deemed “likely to be earned.” In a Player Contract signed by a Rookie running back who was drafted in the first round, any incentive bonus for leading his team in any running back category automatically will be deemed “likely to be earned.” The provisions of this paragraph shall apply notwithstanding [Paragraph 7] of the parties’ letter agreement of April 27, 1993.
*Side Letter 9/21/93: Sec. 13
* For purposes of the Salary Cap, any portion of an incentive bonus that is earned, but which had not been deemed likely to be earned at 100 percent of its value, will be deemed earned at the end of the season and not immediately upon attainment of the required performance level, except (1) as provided [two paragraphs] above [in regards to per play or per game occurrences,] (2) if the incentive bonus is actually paid before the end of the season, in which case it will count when paid, (3) if a player leaves the team’s roster prior to the end of the season and the conditions of the incentive clause are satisfied prior to leaving, in which case the entire value of the earned bonus will count immediately, or (4) if the contract is renegotiated and the incentive has been earned prior to such renegotiation.
*Side Letter 9/21/93: Sec. 14
* Any incentive bonus which a player and a Club agreed to prior to the 1993 League Year that depends upon performance in any category not identified in Exhibit A or Exhibit B will be determined to be likely or unlikely to be earned based upon the player’s and/or team’s performance
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in such category during the League Year prior to the League Year in which the incentive may be earned. Any incentive bonus which a player and a Club agreed to in the 1993 League Year or thereafter that depends upon performance in any category not identified in Exhibit A or Exhibit B automatically will be deemed “Likely to be earned.”
*Side Letter 5/24/95: Sec. 6
* Any incentive bonus which a player and a Club agree to in the 1994 League Year, or in any future League Year during the term of the CBA, that: (i) depends upon performance in any category not identified in Exhibit A or Exhibit B; and (ii) is stated in terms of per play, per event or per game, or for leading or any ranking on the Club in any such category; shall be prohibited.
*Side Letter 5/24/95: Sec. 7
* Any roster bonus which is deemed not “likely to be earned” based upon the player’s performance during the prior year shall immediately be included in Team Salary when earned. Pre-season roster bonuses are automatically deemed “likely to be earned.”
*Side Letter 5/24/95: Sec. 8
* For purposes of the Salary Cap, any incentive bonus (or portion thereof) that is earned during the [Final Capped] Year, but which had not been deemed likely to be earned at 100 percent of its value during that League Year, will be deemed earned and counted against the Salary Cap immediately upon attainment of the required performance level. Conversely, any incentive bonus (or portion thereof) that had been deemed likely to be earned during the [Final Capped] Year will be immediately credited toward the Salary Cap if the required performance level should, during the course of the [Final Capped] Year, become impossible for the player to attain.
*Side Letter 11/11/93: Sec. 1
* To determine the value of an incentive clause for Salary Cap purposes, either under the specific circumstances set forth in the paragraph above, or under the specific circumstances set forth in paragraph 14 of the letter from Jeffrey L. Kessler to Harold R. Henderson dated
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September 21, 1993, such incentive clauses will be valued using the Club’s performance in the prior season in lieu of the Club’s current season performance. Thus, for example, if a Club had 1,000 offensive plays “last season,” and an incentive clause were tied to a player’s participating in 50 percent of the Club’s offensive plays “this season,” the incentive would be deemed earned, for Salary Cap purposes only, as of the time the player participated in 500 offensive plays. Similarly, such an incentive would be deemed not earned, for Salary Cap purposes only, as of the time the player had not participated in a sufficient number of offensive plays so that the player could not achieve the incentive based on last year’s performance (e.g., had participated in only one of the Club’s 502 offensive plays). Nothing herein, however, shall affect the player’s contractual right to receive or not receive the specified incentive, based upon the performance level actually achieved during that year.
*Side Letter 11/11/93: Sec. 2
* If more than eight different team performance categories are included in a Player Contract signed by a Veteran as incentives, all but the eight incentives with the lowest dollar value automatically will be deemed “likely to be earned.” For purposes of this paragraph, each conjunctive combination of performance categories shall be counted as one performance category (e.g., an incentive clause reading, “if A and B and C, then player will receive $X,” shall be counted as one performance category), and each disjunctive combination of performance categories shall be counted by the number of disjunctive performance categories in the combination (e.g., an incentive clause reading, “if A or B or C, then player will receive $X”, shall be counted as three performance categories). In addition, any of the disjunctive performance categories may itself be a conjunctive combination of performance categories (e.g., the “A” in the immediately preceding example may be a conjunctive combination of numerous performance categories, and would be counted as being one category because of its conjunctive nature).
*Side Letter 2/22/96: Sec. 2
* [The above paragraph] does not supersede the terms of any other letter agreement between the parties that
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automatically deem certain performance incentives to be “likely to be earned” or “not likely to be earned” depending upon whether the incentive fulfills other specified criteria (e.g., Paragraphs 3-10 of the September 21, 1993 letter agreement).
*Side Letter 2/22/96: Sec. 3
* [The two preceding paragraphs do] not apply and the parties reserve their rights with respect to multi-year contracts containing team performance incentives.
*Side Letter 2/22/96: Sec. 4
(d) Guaranteed Contracts. Any portion of Salary for which a Team fully guarantees payment for skill or injury shall be included in Team Salary during the year earned, except that:
(i) In a Player Contract entered into in a Capped Year, Salary fully guaranteed for League Years after the Final Capped Year will be included in Team Salary for the preceding League Years in which the Salary Cap is in effect, in any manner the Team chooses, if payment of the player’s entire Salary for the Final Capped Year is not fully guaranteed. For example, without limitation on any other applicable example, if neither party exercises any right to cancel the extension of this Agreement, and if the Salary Cap is in effect during the 2002 and 2003 League Years, and the player enters into a four‑year contract which is not fully guaranteed for the 2002 and 2003 League Years, but is fully guaranteed for the 2004 and 2005 League Years, the full amount of the guaranteed Salary for the 2004 and 2005 League Years will be included in Team Salary for the 2002 and 2003 League Years in a proportion determined by the Team.
* Extension Agreement 2/25/98
(ii) In a Player Contract entered into in a Capped Year, 50% of the Salary fully guaranteed for any League Year beyond three years after the Final Capped Year will be included in Team Salary during the League Year or Years of the Contract in which the Salary Cap is in effect in a proportion to be determined by the Team.
(iii) Any portion of Salary fully guaranteed for any period after a player is released shall be immediately included in Team Salary at the time of his release at the present value rate determined in accordance with the Treasury Bill rate published in The Wall Street Journal of March 1 of the League Year of the player’s release. In such event, the player shall have the opt |
