CBA Complete
As Amended January 8, 2002
Introduction
Preamble
Article I Definitions
Article II Governing Agreement
Article III Scope of Agreement
Article IV No Strike/Lockout/Suit
Article V Union Security
Article VI NFLPA Agent Certification
Article VII Player Security
Article VIII Club Discipline
Article IX Non-Injury Grievance
Article X Injury Grievance
Article XI Commissioner Discipline
Article XII Injury Protection
Article XIII Committees
Article XIV NFL Player Contract
Article XV Option Clause
Article XVI College Draft
Article XVII Entering Player Pool
Article XVIII Veterans with less than 3
accrued seasons
Article XIX Veteran Free Agency
Article XX Franchise and Transition
Players
Article XXI Final Eight Plan
Article XXII Waiver System
Article XXIII Termination Pay
Article XXIV Guaranteed League-wide
Salary,
Salary Cap & minimum Team
Salary
Article XXV Enforcement of the Salary
Cap and
entering Player Pool
Article XXVI Special Master
Article XXVII Impartial Arbitrator
Article XXVIII Anti-Collusion
Article XXIX Certifications
Article XXX Consultation and
information sharing
Article XXXI Expansion
Article XXXII Other Provisions
Article XXXIII Squad size
Article XXXIV Practice Squads
Article XXXV Off-season workouts
Article XXXVI Minicamps
Article XXXVII Pre-season training
camps
Article XXXVIII Salaries
Article XXXVII-A Minimum Salary Benefit
Article XXXVIII-B Performance-Based Pool
Article XXXIX Meal allowance
Article XL Days off
Article XLI Moving and travel expenses
Article XLII Post-season pay
Article XLIII Pro Bowl game
Article XLIV Players’ rights to
medical care & treatment
Article XLV Access to personnel &
medical records
Article XLVI Player Benefit costs
Article XLVII Retirement Plan
Article XLVIII Second career savings
plan
Article XLVIII-A Player annuity
program
Article XLIX Group insurance
Article L Severance pay
Article LI Supplemental disability
benefits
Article LII Benefit Arbitrator
Article LIII Retention of benefits
Article LIV Workers’ Compensation
Article LV Miscellaneous
Article LVI Final league year
Article LVII Mutual reservation of
rights:
Labor exemption
Article LVIII Duration of agreement
Article LIX Governing Law
Article LX Notices
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
Appendix F
Appendix G
Appendix H
Appendix I
Appendix J
Appendix K
Appendix L
Appendix M
Appendix N
Page 1
INTRODUCTION
On January 8, 2002, the National Football League
Management Council ("Management Council" or
"NFLMC") and the National Football League
Players Association ("NFLPA") agreed to
extend, with certain modifications, the 1993 NFL
Collective Bargaining Agreement ("CBA"), which
was previously amended June 6, 1996, February 25, 1998,
and December 4, 2000. This booklet incorporates the
1998, 2000, and 2002 amendment agreements into the text
of the CBA and omits provisions relating exclusively to
past seasons (although any such omitted terms, if
subsequently determined to be applicable, have the same
force and effect as the terms set forth herein. Any
persons with questions about provisions concerning
seasons before 2002 should refer to prior printed
versions of the CBA). The 2000 and 2002 amendment
language is set forth in italic copy with applicable
notations to the extension agreements. In addition, side
letter agreements between the NFLMC and the NFLPA
setting forth the parties' interpretation of various
provisions of the CBA are reprinted and indented within
the appropriate articles. Relevant side letters that
were agreed to after the 1998 extension are added to
this booklet, and are set forth in italics. For easy
reference, the article names can be found at the top of
each two-page set of this booklet.
Page 2-blank
Page 3
PREAMBLE
This Agreement, which is the
product of bona fide, arm's length collective
bargaining, is made and entered into on the 6th day of
May, 1993, in accordance with the provisions of the
National Labor Relations Act, as amended, by and between
the National Football League Management Council
("Management Council" or "NFLMC"),
which is recognized as the sole and exclusive bargaining
representative of present and future employer member
Clubs of the National Football League ("NFL"
or "League"), and the National Football League
Players Association ("NFLPA"), which is
recognized as the sole and exclusive bargaining
representative of present and future employee players in
the NFL in a bargaining unit described as follows:
1.
All professional football players employed by a member
club of the National Football League;
2.
All professional football players who have been
previously employed by a member club of the National
Football League who are seeking employment with an NFL
Club;
3.
All rookie players once they are selected in the current
year’s NFL College Draft; and
4.
All undrafted rookie players once they commence
negotiation with an NFL Club concerning employment as a
player.
Page 4
ARTICLE I
DEFINITIONS
As used in this Agreement, the
following terms shall have the following meanings:
Section 1. General Definitions:
(a)
"Agreement" means this Collective Bargaining
Agreement, dated May 6, 1993.
(b)
"Class Counsel" means the law firm of Weil,
Gotshal & Manges, 767 Fifth Avenue, New York, New
York 10153, and the law firm of Lindquist & Vennum,
4200 IDS Center, Minneapolis, Minnesota 55402.
(c) "Club"
or "Team" or "Member," used
interchangeably herein, means any entity that is a
member of the NFL or operates a franchise in the NFL at
any time during the term of this Agreement.
(d)
"Club Affiliate" or "Team Affiliate"
means any entity or person owned by (wholly or partly),
controlled by, affiliated with, or related to a Club or
any owner of a Club.
(e)
"Commissioner" means the Commissioner of the
NFL.
(f) "Impartial
Arbitrator" means the person authorized by this
Agreement and the Settlement Agreement to hear and
resolve specified disputes as provided in this Agreement
and the Settlement Agreement.
(g)
"League Year" means the period from February
20 of one year through and including February 19 of the
following year, or such other one year period to which
the NFL and the NFLPA may agree.
(h)
"NFL Player Contract" means the form of Player
Contract utilized in the NFL.
(i)
"NFL Rules" means the Constitution and
By-Laws, rules, and regulations of the NFL and/or the
Management Council.
(j)
"Player Affiliate" means any entity or person
owned by (wholly or partly), controlled by, affiliated
with, or related to a player.
(k)
"Salary" means any compensation of money,
property, investments, loans, or anything else of value
that a Club pays to, or is obligated to pay to, a player
or Player Affiliate, or is paid to a third party at the
request of and for the benefit of a player or Player
Affiliate, during a League Year, as calculated in
accordance with the rules set forth in Article XXIV
(Guaranteed League-wide Salary, Salary Cap & Minimum
Team Salary).
(l)
"Settlement Agreement" means the Stipulation
and Settlement Agreement, dated February 26, 1993.
(m) "Special
Master" means the special master appointed and
authorized by this Agreement and the Settlement
Agreement to hear and resolve specified disputes as
provided in this Agreement and the Settlement Agreement.
Page 5
Section 2. Free Agency Definitions:
(n)
"Accrued Season" means any playing season for
which a player received credit with respect to his
qualifications for Unrestricted Free Agency or
Restricted Free Agency, as described in Article XIX
(Veteran Free Agency).
(o)
"Compensatory Draft Selection" means an
additional Draft choice awarded to a Club as described
in Article XIX (Veteran Free Agency) and Article XX
(Franchise and Transition Players).
(p)
"Draft" or "College Draft" means the
NFL's annual draft of Rookie football players as
described in Article XVI (College Draft).
(q)
"Draft Choice Compensation" means the right of
any Club, as described in Article XIX (Veteran Free
Agency) and Article XX (Franchise and Transition
Players), to receive draft pick(s) from any other Club.
(r)
"Drafted Rookie" means a person who is
selected in the current League Year's Draft or whose
Draft rights are held, or continue to be held,
consistent with this Agreement, by an NFL Club that
selected the Rookie in a prior Draft.
(s)
"Final Eight Plan" means the rules whereby
signings of Unrestricted Free Agents are limited in
Uncapped Years for the final eight playoff Clubs, under
the limited circumstances described in Article XXI
(Final Eight Plan).
(t)
"Free Agent" means a player who is not under
contract and is free to negotiate and sign a Player
Contract with any NFL Club, without Draft Choice
Compensation or any Right of First Refusal.
(u)
"Minimum Salary" means the minimum annual
Paragraph 5 Salary which shall be paid to an NFL player
not on any Active list, and not on the Inactive list,
pursuant to this Agreement.
(v)
"Minimum Active/Inactive List Salary" means
the minimum annual Paragraph 5 Salary which shall be
paid to an NFL player on any Active list, or on the
Inactive list, pursuant to this Agreement.
(w)
"Negotiate" means, with respect to a player or
his representatives on the one hand, and an NFL Club or
its representatives on the other hand, to engage in any
written or oral communication relating to efforts to
reach agreement on employment and/or terms of employment
between such player and such Club.
(x)
"New Club" means any Club except the Prior
Club (as defined below).
(y)
"Player Contract" means a written agreement or
series of such agreements executed at or about the same
time between a person and an NFL Club pursuant to which
such person is employed by such Club as a professional
football player.
(z)
"Prior Club" means the Club that contracted
with or otherwise held the NFL playing rights for the
player for the previous NFL League Year.
(aa) "Prior Year
Salary" means the total of the Paragraph 5 Salary,
roster and reporting bonuses, pro-rata portion of
signing bonus, and other payments to a player in
compensation for the playing of professional football
for the last League Year of the player's most recently
negotiated Player Contract, except for performance
bonuses other than roster and reporting bonuses. Prior
Year Salary shall also include any unrepaid loans made,
guaranteed or collateralized by a Team or its Team
Affiliate to a player or Player Affiliate during or
after the 1993 League Year.
Page 6
(ab) "Renegotiate"
means any change in Salary or the terms under which such
Salary is earned or paid, or any change regarding the
Club's right to trade the player, during the term of a
Player Contract.
(ac)
"Required Tender" means a Player Contract
tender that a Club is required to make to a player
pursuant to this Agreement, either as a matter of right
with respect to the player, or to receive Rights of
First Refusal, Draft Choice Compensation and/or other
rights with respect to the player, as specified in this
Agreement.
(ad) "Restricted
Free Agent" means a Veteran who has three or more
Accrued Seasons and who completes performance of his
Player Contract, but who is still subject to a Right of
First Refusal and/or Draft Choice Compensation in favor
of his Prior Club.
(ae) "Right of
First Refusal" means the right of an NFL Club, as
described in Article XIX (Veteran Free Agency) and
Article XX (Franchise and Transition Players) to retain
the services of certain Veteran players by matching
offers made to those players.
(af)
"Rookie" means a person who has never signed a
Player Contract with an NFL Club.
(ag) "Undrafted
Rookie" means a Rookie who was eligible for but not
selected in a College Draft.
(ah)
"Unrestricted Free Agent" means a Veteran who
completes performance of his Player Contract, and who is
no longer subject to any exclusive negotiating rights,
Right of First Refusal, or Draft Choice Compensation in
favor of his Prior Club.
(ai)
"Veteran" means a player who has signed at
least one Player Contract with an NFL Club.
Section 3. Salary Cap Definitions:
(aj)
"Benefits" or "Player Benefit Costs"
means the specific benefits paid to players set forth in
Article XXIV (Guaranteed League-wide Salary, Salary Cap
& Minimum Team Salary).
(ak) "Capped
Year" means any League Year for which a Salary Cap
is in effect.
(al)
"Defined Gross Revenues" or "DGR"
means all of the League and Team revenues that are
included within the definition of Defined Gross
Revenues, as set forth in Article XXIV (Guaranteed
League-wide Salary, Salary Cap & Minimum Team
Salary).
(am) "Guaranteed
League-wide Salary" means the minimum amount
Page 7
that the Teams in the NFL must pay in Player Costs
during a League Year, if applicable, as set forth in
Article XXIV (Guaranteed League-wide Salary, Salary Cap
& Minimum Team Salary).
(an) "Minimum
Team Salary" means the minimum amount that each
Team must pay in Salaries during a League Year, if
applicable, as set forth in Article XXIV (Guaranteed
League-wide Salary, Salary Cap & Minimum Team
Salary), Section 5.
(ao) "Paragraph 5
Salary" means the compensation set forth in
paragraph 5 of the NFL Player Contract, or in any
amendments thereto.
(ap) "Player
Costs" means the total Salaries and Benefits
attributable to a League Year for all NFL Teams under
all of the rules set forth in Article XXIV (Guaranteed
League-wide Salary, Salary Cap & Minimum Team
Salary), but not including loans, loan guarantees,
unpaid grievances attributions, and unearned incentives.
(aq) "Projected
Benefits" means the amount of Benefits projected in
accordance with the rules set forth in Article XXIV
(Guaranteed League-wide Salary, Salary Cap & Minimum
Team Salary).
(ar)
"Projected Defined Gross Revenues" means the
amount of Defined Gross Revenues projected in accordance
with the rules set forth in Article XXIV (Guaranteed
League-wide Salary, Salary Cap & Minimum Team
Salary).
(as)
"Room" means the extent to which a Team's
then-current Team Salary is less than either the Salary
Cap or Entering Player Pool, as applicable.
(at) "Salary
Cap" means the absolute maximum amount of Salary
that each Club may pay or be obligated to pay or provide
to players or Player Affiliates, or may pay or be
obligated to pay to third parties at the request of and
for the benefit of Players or Player Affiliates, at any
time during a particular League Year, in accordance with
the rules set forth in Article XXIV (Guaranteed
League-wide Salary, Salary Cap & Minimum Team
Salary), if applicable.
(au) "Team
Salary" means the Team's aggregate Salary for
Salary Cap purposes, as calculated in accordance with
the rules set forth in Article XXIV (Guaranteed
League-wide Salary, Salary Cap & Minimum Team
Salary).
(av) "Uncapped
Year" means any League Year for which a Salary Cap
is not in effect.
Section 4.Further Definitions:
(aw) "Final League
Year" means the League Year which is scheduled
prior to its commencement to be the final League Year of
this Agreement. As of the date hereof, the Final League
Year is the 2007 League Year. The Final League Year
shall always be an Uncapped Year.
Page 8
*Extension Agreement 1/8/2002
(ax) "Final
Capped Year" means the League Year immediately
prior to the Final League Year. The Final Capped Year
shall be Capped unless the Salary Cap is removed
pursuant to Article XXIV (Guaranteed League-wide Salary,
Salary Cap & Minimum Team Salary), Section
4(b)(ii)(4).
Page 9
ARTICLE II
GOVERNING AGREEMENT
Section 1. Conflicts: The provisions of
this Agreement supersede any conflicting provisions in
the NFL Player Contract, the NFL Constitution and
Bylaws, or any other document affecting terms and
conditions of employment of NFL players, and all
players, Clubs, the NFLPA, the NFL, and the Management
Council will be bound hereby. The provisions of the
Stipulation and Settlement Agreement, as amended, in White
v. NFL, No. 4-92-906 (D. Minn.) ("Settlement
Agreement"), shall supersede any conflicting
provisions of this Agreement.
Section 2. Implementation: The NFLPA
and the Management Council will use their best efforts
to faithfully carry out the terms and conditions of this
Agreement and to see that the terms and conditions of
this Agreement are carried out in full by players and
Clubs. The NFLPA will use its best efforts to see that
the terms and conditions of all NFL Player Contracts are
carried out in full by players.
Section 3. Management Rights:
The NFL Clubs maintain and reserve the right to manage
and direct their operations in any manner whatsoever,
except as specifically limited by the provisions of this
Agreement and the Settlement Agreement.
Section 4. Rounding: For the
purposes of any amounts to be calculated or used
pursuant to this Agreement with respect to Required
Tenders, Qualifying Offers, Minimum Salaries, Minimum
Active/Inactive List Salaries, Team Salary, DGR,
Excluded DGR, Benefits, Player Costs, Projected DGR,
Projected Benefits, or Salary, such amounts shall be
rounded to the nearest $1,000.
Page 10
ARTICLE III
SCOPE OF AGREEMENT
Section 1. Scope: This Agreement
represents the complete understanding of the parties on
all subjects covered herein, and there will be no change
in the terms and conditions of this Agreement without
mutual consent. Except as otherwise provided in Article
V (Union Security), Section 6, on Union Security, and on
Article LIV (Workers' Compensation), Section 7, on
Workers' Compensation, the NFLPA and the Management
Council waive all rights to bargain with one another
concerning any subject covered or not covered in this
Agreement for the duration of this Agreement, including
the provisions of the NFL Constitution and Bylaws;
provided, however, that if any proposed change in the
NFL Constitution and Bylaws during the term of this
Agreement could significantly affect the terms and
conditions of employment of NFL players, then the
Management Council will give the NFLPA notice of and
negotiate the proposed change in good faith.
Section 2. Arbitration: The question of
whether the parties engaged in good faith negotiations,
or whether any proposed change in the NFL Constitution
and Bylaws would violate or render meaningless any
provision of this Agreement, may be the subject of a
non-injury grievance under Article IX (Non-Injury
Grievance), which shall be the exclusive method for
resolving disputes arising out of this Section 2. If the
arbitrator finds that either party did not engage in
good faith negotiations, or that the proposed change
would violate or render meaningless any provision of
this Agreement, he may enter an appropriate order,
including to cease and desist from implementing or
continuing the practice or proposal in question;
provided, however, that the arbitrator may not compel
either party to this Agreement to agree to anything or
require the making of a concession by either party in
negotiations.
Page 11
ARTICLE IV
NO STRIKE/LOCKOUT/SUIT
Section 1. No Strike/Lockout: Except as
otherwise provided in Article V (Union Security),
Section 6, or Article LIV (Workers' Compensation),
Section 7, neither the NFLPA nor any of its members will
engage in any strike, work stoppage, or other concerted
action interfering with the operations of the NFL or any
Club for the duration of this Agreement, and no Clubs,
either individually or in concert with other Clubs, will
engage in any lockout for the duration of this
Agreement. Any claim by the Management Council that the
NFLPA has violated this Section 1 will not be subject to
the grievance procedure or the arbitration provisions of
this Agreement and the Management Council will have the
right to submit such claim directly to the courts.
Section 2. No Suit: The NFLPA agrees
that neither it nor any of its members, nor agents
acting on its behalf, nor any member of its bargaining
unit, will sue, or support financially or
administratively, or voluntarily provide testimony or
affidavit in, any suit against, the NFL or any Club with
respect to any claim relating to any conduct permitted
by this Agreement, the Settlement Agreement, or any term
of this Agreement or the Settlement Agreement,
including, without limitation, the Articles concerning
the College Draft, the Compensatory Draft, the Option
Clause, the Entering Player Pool, Veterans With Less
Than Three Accrued Seasons, Veteran Free Agency,
Franchise and Transition Players, the Final Eight Plan,
Guaranteed League-wide Salary, Salary Cap and Minimum
Team Salary, and the Waiver System, and provisions
applicable to the trading of players; provided, however,
that nothing contained in this Section 2 will prevent
the NFLPA or any player from asserting that any Club,
acting individually or in concert with other Clubs, or
the Management Council, has: (1) breached the terms of
this Agreement, the NFL Player Contract, the revised NFL
Player Contract, or the NFL Constitution and Bylaws, and
from processing such asserted breach as a non-injury
grievance under Article IX (Non-Injury Grievance) or
asserting any claim before the Special Master or the
Impartial Arbitrator as provided in this Agreement; or
(2) breached the terms of the Settlement Agreement and
from asserting such a claim before the Special Master,
Impartial Arbitrator, or the Federal District Court, as
provided for in the Settlement Agreement. In addition,
neither the NFLPA nor any of its members, agents acting
on its behalf, nor any members of its bargaining unit
will sue, or support financially or administratively any
suit against, the NFL or any Club relating to the
presently existing provisions of the Constitution and
Bylaws of the NFL as they are currently operative and
administered (except any provisions relating to the 1982
CBA, which have been superseded by this Agreement);
provided, however, that nothing herein shall prevent the
NFLPA, its members, agents or bargaining unit members
from asserting any
Page 12
rights they may have under the federal labor
laws or under this Agreement or the Settlement
Agreement.
Section 3. Releases: The releases and
covenants not to sue contained in Article XIX (Releases
and Covenants Not to Sue) of the Settlement Agreement
are hereby incorporated by reference.
Page 13
ARTICLE V
UNION SECURITY
Section 1. Union Security: Every NFL
player has the option of joining or not joining the
NFLPA; provided, however, that as a condition of
employment commencing with the execution of this
Agreement and for the duration of this Agreement and
wherever and whenever legal: (a) any active player who
is or later becomes a member in good standing of the
NFLPA must maintain his membership in good standing in
the NFLPA; and (b) any active player (including a player
in the future) who is not a member in good standing of
the NFLPA must, on the 30th day following the beginning
of his employment or the execution of this Agreement,
whichever is later, pay, pursuant to Section 2 below or
otherwise to the NFLPA, an annual service fee in the
same amount as any initiation fee and annual dues
required of members of the NFLPA.
Section 2. Check‑off: Commencing
with the execution of this Agreement, each Club will
check-off the initiation fee and annual dues or service
charge, as the case may be, in equal weekly or biweekly
installments from each pre-season and regular season pay
check, beginning with the first pay check after the date
of the first pre-season squad cutdown, for each player
for whom a current check-off authorization (copy
attached hereto as Appendix A and made a part of this
Agreement) has been provided to the Club. The Club will
forward the check-off monies to the NFLPA within seven
days of the check-off.
Section 3. NFLPA Meetings: The NFLPA
will have the right to conduct three meetings on Club
property each year, including one at the time of a
Club's minicamp, provided that the player representative
or NFLPA office has given the Club reasonable notice of
its desire to hold such a meeting by the close of
business on Friday of the week before the week in which
the meeting is to take place, or by the close of
business Thursday if the meeting is scheduled for the
following Monday. No meeting will be held at a time
which would disrupt a coach's team schedule.
Section 4. NFLPA Player Group
Licensing Program: The NFL recognizes that players
have authorized the NFLPA to act as their agent in a
Group Player Licensing program (defined below) for their
benefit. The NFL hereby agrees that neither it, any
Club, nor any affiliate of the NFL and/or any Club shall
acquire, seek to acquire, induce others to acquire, or
assist others in acquiring Group Player Licensing
rights, or interfere in any manner with any player's
conveyance of such rights pursuant to the NFLPA Group
Player Licensing program, except as otherwise explicitly
agreed to between the NFLPA and the NFL. Any disputes
that arise regarding the NFL's conduct in this regard
shall be submitted for expedited arbitration pursuant to
Page 14
Article IX (Non-Injury Grievance). For the purposes
of this Section 4, Group Player Licensing shall be
defined as the use of a total of six or more NFL
players' names, signatures facsimiles, voices, pictures,
photographs, likenesses and/or biographical information
on or in conjunction with products (including, but not
limited to, trading cards, clothing, videogames,
computer games, collectibles, internet sites, fantasy
games, etc.): (a) in any one product category, as
defined by industry standards; or (b) in different
categories if a total of six or more players are used
and (i) the products all use similar or derivative
design or artwork or (ii) one such player product is
used to promote another player product. For the purposes
of this Section 4, Group Player Licensing includes,
without limitation, products sold at retail and products
that are used as promotional or premium items.
* Extension Agreement 1/8/02
Section 5. Disputes: Any dispute over
compliance with, or the interpretation, application or
administration of this Article, except any dispute
concerning Section 4 of this Article, will be processed
pursuant to Article IX (Non‑Injury Grievance). Any
decision of an outside arbitrator pursuant thereto will
constitute full, final and complete disposition of the
dispute, and will be binding on the player(s) and Club(s)
involved and the parties to this Agreement.
Section 6. Procedure for
Enforcement:
(a) Upon written notification to the Management
Council by the NFLPA that a player has not paid any
initiation fee, dues or the equivalent service fee in
violation of Section 1 of this Article V (Union
Security), the Management Council will within seven days
consider the matter. If there is no resolution of the
matter within seven days, then the Club will, upon
notification of the NFLPA, suspend the player without
pay. Such suspension will continue until the NFLPA has
notified the Club in writing that the suspended player
has satisfied his obligation as contained in Section 1
of this Article V (Union Security). The parties hereby
agree that suspension without pay is adopted as a
substitute for and in lieu of discharge as the penalty
for a violation of the union security clause of the
Agreement and that no player will be discharged for a
violation of that clause. The player's contract will be
tolled during the period of any such suspension. A copy
of all notices required by this "Procedure for the
Enforcement of the Union Security Agreement Between the
NFL Management Council and the NFLPA" will be
simultaneously mailed to the player involved and the
Management Council.
(b) It is further agreed that the term "member
in good standing" as used in this Article V (Union
Security) applies only to payment of dues or initiation
fee and not any other factors involved in union
discipline.
(c) It is further agreed that notwithstanding Article
III (Scope of Agreement), Article IV (No
Strike/Lockout/Suit), and Article LVIII (Duration of
Agreement), that if at any time in the term of the
Agreement, any court or agency shall wholly or partially
invalidate the provisions of Article V (Union Security)
relating to Union Security, then the NFLPA may reopen
Page 15
this Agreement upon the giving of 10 days' written
notice, with reference solely to the issue of Union
Security, and both parties will have an obligation to
resume negotiations limited to the issue of Union
Security, and both parties will be free to engage in
whatever concerted or other action may be permitted by
law in support of their positions.
Section 7. NFLPA Responsibility:
It is agreed that neither the NFL nor any Club shall be
liable for any salary, bonus, or other monetary claims
of any player suspended pursuant to the terms of Section
6 above. Collection of initiation fees, annual dues,
service charges or other check-off amounts missed
because of inadvertent errors shall be the
responsibility of the NFLPA. The NFLPA shall be solely
responsible for refunds to players in the case of any
sums deducted not in conformity with the provisions of
the NFLPA Constitution and Bylaws or applicable law.
Section 8. Orientations: During
the annual Timing and Testing Sessions of the Scouting
Combines, the NFL will use best efforts to ensure that
the NFLPA will be permitted to present one-hour
orientations for all of the college players attending
the session. The orientation will include only
information on the Career Planning Program, the Chemical
Dependency Program, the NFLPA Agent Certification
System, and other information contained in this
Agreement and will encourage the players to participate
fully in all activities of the Scouting Combine. The
NFLPA will also have the right to space in the public
area of the players' hotel, staffed by NFLPA employees,
to provide information requested by players during their
free time at the Combine. The NFLPA and the NFL will
also sponsor an orientation with an agreed-upon agenda
for all rookies on a Club-by-Club basis during the first
half of the NFL regular season, which meetings may take
place on the players' day off if no other mutually
acceptable day is agreed upon.
* Attendance at the annual Rookie Symposium shall
be mandatory for all Rookies invited to the Symposium. A
material failure to attend the entire Symposium (e.g.,
missing more than one presentation) that is unexcused by
the NFLMC will result in a fine of $11,000 for the
2002-04 League Years and $12,000 for the 2005-07 League
Years. The NFLPA and the NFLMC shall each use its best
efforts to encourage players to participate fully in all
symposium activities and to abide by all symposium rules
(e.g., dress code, curfew, etc.). Being late for or
missing curfew will result in a fine at the then
applicable amount under Article VIII of the CBA. Other
lateness for meetings or similar Article VIII violations
will be disciplined at the applicable fine amounts.
Discipline shall be imposed, if appropriate, by the
NFLMC, not by any Club.
* Side Letter 1/25/99, as modified
by Extension Agreement 1/8/02
Page 16
ARTICLE VI
NFLPA AGENT CERTIFICATION
Section 1. Exclusive Representation:
The NFLMC and the Clubs recognize that the NFLPA
regulates the conduct of agents who represent players in
individual contract negotiations with Clubs. The NFLMC
and the Clubs agree that the Clubs are prohibited from
engaging in individual contract negotiations with any
agent who is not listed by the NFLPA as being duly
certified by the NFLPA in accordance with its role as
exclusive bargaining agent for NFL players. The NFLPA
shall provide and publish a list of agents who are
currently certified in accordance with its agent
regulation system, and shall notify the NFLMC and the
Clubs of any deletions or additions to the list pursuant
to its procedures. The NFLPA agrees that it shall not
delete any agent from its list until that agent has
exhausted the opportunity to appeal the deletion to a
neutral arbitrator pursuant to its agent regulation
system, except: (i) where an agent has failed to pass a
written examination given to agents by the NFLPA or (ii)
in extraordinary circumstances where the NFLPA's
investigation discloses that the agent's conduct is of
such a serious nature as to justify immediately
invalidating the agent's certification. The NFLPA shall
have sole and exclusive authority to determine the
number of agents to be certified, and the grounds for
withdrawing or denying certification of an agent. The
NFLPA agrees that it will not discipline, dismiss or
decertify agents based upon the results they achieve or
do not achieve in negotiating terms or conditions of
employment with NFL Clubs.
* Side Letter 8/1/00
Section 2. Enforcement: Under
procedures to be established by agreement between the
NFL and the NFLPA, the Commissioner shall disapprove any
NFL Player Contract(s) between a player and a Club
unless such player: (a) is represented in the
negotiations with respect to such NFL Player Contract(s)
by an agent or representative duly certified by the
NFLPA in accordance with the NFLPA agent regulation
system and authorized to represent him; or (b) acts on
his own behalf in negotiating such NFL Player Contract(s).
Section 3. Penalty: Under
procedures to be established by agreement between the
NFL and the NFLPA, the NFL shall impose a fine of
$10,000 upon any Club that negotiates any NFL Player
Contract(s) with an agent or representative not
certified by the NFLPA in accordance with the NFLPA
agent regulation system if, at the time of such
negotiations, such Club either (a) knows that such agent
or representative has not been so certified or (b) fails
to make reasonable inquiry of the NFLPA as to whether
such agent or representative has been so certified. Such
fine shall not apply, however, if the negotiation in
question is the first violation of this Article by the
Club during the term of this Agreement. It shall not be
a violation of this Article for a Club to negotiate with
any person named on (or not deleted from) the most
recently published list of agents certified by the NFLPA
to represent players.
Page 17
ARTICLE VII
PLAYER SECURITY
Section 1. No Discrimination:
There will be no discrimination in any form against any
player by the Management Council, any Club or by the
NFLPA because of race, religion, national origin or
activity or lack of activity on behalf of the NFLPA.
Section 2. Personal Appearance:
Clubs may make and enforce reasonable rules governing
players' appearance on the field and in public places
while representing the Clubs; provided, however, that no
player will be disciplined because of hair length or
facial hair.
Page 18
ARTICLE VIII
CLUB DISCIPLINE
Section 1. Maximum Discipline:
(a) For the 1993 League Year, the following maximum
discipline schedule will be applicable:
Overweight-maximum fine of $50 per lb./per day.
Unexcused late reporting for mandatory off-season
training camp, team meeting, practice, transportation,
curfew, scheduled appointment with Club physician or
trainer, or scheduled promotional activity-maximum fine
of $200.
Failure to promptly report injury to Club physician
or trainer-maximum fine of $200.
Losing, damaging or altering Club-provided
equipment-maximum fine of $200 and replacement cost, if
any.
Throwing football into stands-maximum fine of $200.
Unexcused late reporting for or absence from
pre-season training camp by a player under contract
except those signed as an Unrestricted Free Agent
pursuant to Article XIX (Veteran Free Agency)-maximum
fine of $4,000 per day for the 1993-95 League years,
$5,000 per day for the 1996-2004 League Years and $6,000
per day for the 2005-07 League Years.
Unexcused late reporting for or absence from
pre-season training camp by a player under contract
signed as an Unrestricted Free Agent pursuant to Article
XIX (Veteran Free Agency)-maximum fine of $4,000 per day
for the 1993-95 League years, $5,000 per day for the
1996-2004 League Years and $6,000 per day for the
2005-07 League Years, plus one week's regular season
salary for each pre-season game missed.
Unexcused missed mandatory off-season training camp,
team meeting, practice, curfew, bed check, scheduled
appointment with Club physician or trainer, material
failure to follow Club rehabilitation directions, or
scheduled promotional activity-maximum fine of $1,000.
Material failure to follow rehabilitation program
prescribed by Club physician or trainer-maximum fine of
$1,000.
Unexcused missed team transportation-maximum fine of
$1,000 and transportation expense, if any.
Loss of all or part of playbook, scouting report or
game plan-maximum fine of $1,000.
Ejection from game-maximum fine of $2,000.
Conduct detrimental to Club-maximum fine of an amount
equal to one week's salary and/or suspension without pay
for a period not to exceed four (4) weeks.
The Club will promptly notify the player of any
discipline; notice of any Club fine in the
$4,000/$5,000/$6,000 maximum category and of any
"conduct detrimental" fine or suspension will
be sent to the NFLPA.
* Extension Agreement 1/8/02
(b) The amounts set forth in
Section 1(a) above shall be in effect for
Page 19
the 1993-1995 League Years. Such fines shall be
increased by 25% each for the 1996 League Year and each
year thereafter during the term of this Agreement,
except for those fines for which the specific increase
is set forth in Section 1(a) above.
Section 2. Published Lists: All
Clubs must publish and make available to all players at
the commencement of pre-season training camp a complete
list of the discipline which can be imposed for
designated offenses within the limits set by the maximum
schedule referred to in Section 1 above.
Section 3. Uniformity:
Discipline will be imposed uniformly within a Club on
all players for the same offense; however, the Club may
specify the events which create an escalation of the
discipline, provided the formula for escalation is
uniform in its application. Any disciplinary action
imposed upon a player by the Commissioner pursuant to
Article XI (Commissioner Discipline) will preclude or
supersede disciplinary action by the Club for the same
act or conduct.
Section 4. Disputes: Any dispute
involved in Club discipline may be made the subject of a
non-injury grievance under Article IX (Non-Injury
Grievance).
Section 5. Deduction: Any Club
fine will be deducted at the rate of no more than $1,000
from each pay period, if sufficient pay periods remain;
or, if less than sufficient pay periods remain, the fine
will be deducted in equal installments over the number
of remaining pay periods. This will not apply to a
suspension.
Page 20
ARTICLE IX
NON-INJURY GRIEVANCE
Section 1. Definition: Any
dispute (hereinafter referred to as a
"grievance") arising after the execution of
this Agreement and involving the interpretation of,
application of, or compliance with, any provision of
this Agreement, the NFL Player Contract, or any
applicable provision of the NFL Constitution and Bylaws
pertaining to terms and conditions of employment of NFL
players, will be resolved exclusively in accordance with
the procedure set forth in this Article, except wherever
another method of dispute resolution is set forth
elsewhere in this Agreement, and except wherever the
Settlement Agreement provides that the Special Master,
Impartial Arbitrator, the Federal District Court or the
Accountants shall resolve a dispute.
Section 2. Initiation: A
grievance may be initiated by a player, a Club, the
Management Council, or the NFLPA. A grievance must be
initiated within forty-five (45) days from the date of
the occurrence or non-occurrence upon which the
grievance is based, or within forty-five (45) days from
the date on which the facts of the matter became known
or reasonably should have been known to the party
initiating the grievance, whichever is later. A player
need not be under contract to a Club at the time a
grievance relating to him arises or at the time such
grievance is initiated or processed.
Section 3. Filing: Subject to
the provisions of Section 2 above, a player or the NFLPA
may initiate a grievance by filing a written notice by
certified mail or fax with the Management Council and
furnishing a copy of such notice to the Club(s)
involved; a Club or the Management Council may initiate
a grievance by filing written notice by certified mail
or fax with the NFLPA and furnishing a copy of such
notice to the player(s) involved. The notice will set
forth the specifics of the alleged action or inaction
giving rise to the grievance. If a grievance is filed by
a player without the involvement of the NFLPA, the
Management Council will promptly send copies of the
grievance and the answer to the NFLPA. The party to whom
a non-injury grievance has been presented will answer in
writing by certified mail or fax within seven (7) days
of receipt of the grievance. The answer will set forth
admissions or denials as to the facts alleged in the
grievance. If the answer denies the grievance, the
specific grounds for denial will be set forth. The
answering party will provide a copy of the answer to the
player(s) or Club(s) involved and the NFLPA or the
Management Council as may be applicable.
Section 4. Appeal: If a
grievance is not resolved after it has been filed and
answered, either the player(s) or Club(s) involved, or
the NFLPA, or
Page 21
the Management Council may appeal such grievance by
filing a written notice of appeal with the Notice
Arbitrator and mailing copies thereof to the party or
parties against whom such appeal is taken, and either
the NFLPA or the Management Council as may be
appropriate. If the grievance involves a suspension of a
player by a Club, the player or NFLPA will have the
option to appeal it immediately upon filing to the
Notice Arbitrator and a hearing will be held by an
arbitrator designated by the Notice Arbitrator within
seven (7) days of the filing of the grievance. In
addition, the NFLPA and the Management Council will each
have the right of immediate appeal and hearing within
seven (7) days with respect to four (4) grievances of
their respective choice each calendar year. The
arbitrator(s) designated to hear such grievances will
issue their decision(s) within five (5) days of the
completion of the hearing. Prehearing briefs may be
filed by either party and, if filed, will be exchanged
prior to hearing.
Section 5. Discovery: No later
than ten (10) days prior to the hearing, each party will
submit to the other copies of all documents, reports and
records relevant to the dispute. Failure to submit such
documents, reports and records no later than ten (10)
days prior to the hearing will preclude the
non-complying party from submitting such documents,
reports and records into evidence at the hearing, but
the other party will have the opportunity to examine
such documents, reports and records at the hearing and
to introduce those it desires into evidence, except that
relevant documents submitted to the opposing party less
than ten (10) days before the hearing will be admissible
provided that the proffering party and the custodian(s)
of the documents made a good faith effort to obtain (or
discover the existence of) said documents or that the
document's relevance was not discovered until the
hearing date. In the case of an expedited grievance
pursuant to Section 4, such documentary evidence shall
be exchanged on or before two (2) days prior to the
hearing unless the arbitrator indicates otherwise.
Section 6. Arbitration Panel:
There will be a panel of four (4) arbitrators, whose
appointment must be accepted in writing by the NFLPA and
the Management Council. The parties will designate the
Notice Arbitrator within ten (10) days of the execution
of this Agreement. In the event of a vacancy in the
position of Notice Arbitrator, the senior arbitrator in
terms of affiliation with this Agreement will succeed to
the position of Notice Arbitrator, and the resultant
vacancy on the panel will be filled according to the
procedures of this Section. Either party to this
Agreement may discharge a member of the arbitration
panel by serving written notice upon the arbitrator and
the other party to this Agreement between December 1 and
10 of each year, but at no time shall such discharges
result in no arbitrators remaining on the panel. If
either party discharges an arbitrator, the other party
shall have two (2) business days to discharge any other
arbitrator. If the parties are unable to agree on a new
arbitrator within thirty (30) days of any vacancy, the
Notice Arbitrator shall submit a list of ten (10)
qualified and experienced arbitrators to the NFLPA and
the Management Council. Within
Page 22
fourteen (14) days of the receipt of the list, the
NFLPA and the Management Council shall select one
arbitrator from the list by alternately striking names
until only one remains, with a coin flip determining the
first strike. The next vacancy occurring will be filled
in similar fashion, with the party who initially struck
first then striking second. The parties will alternate
striking first for future vacancies occurring thereafter
during the term of this Agreement. If either party fails
to cooperate in the striking process, the other party
may select one of the nominees on the list and the other
party will be bound by such selection.
Section 7. Hearing: Each
arbitrator will designate a minimum of twelve (12)
hearing dates per year, exclusive of the period July 15
through September 10 for non-expedited cases, for use by
the parties to this Agreement. Upon being appointed,
each arbitrator will, after consultation with the Notice
Arbitrator, provide to the NFLPA and the Management
Council specified hearing dates for such ensuing period,
which process will be repeated on an annual basis
thereafter. The parties will notify each arbitrator
thirty (30) days in advance of which dates the following
month are going to be used by the parties. The
designated arbitrator will set the hearing on his next
reserved date in the Club city unless the parties agree
otherwise. If a grievance is set for hearing and the
hearing date is then postponed by a party within thirty
(30) days of the hearing date, the postponement fee of
the arbitrator will be borne by the postponing party
unless the arbitrator determines that the postponement
was for good cause. Should good cause be found, the
parties will share any postponement costs equally. If
the arbitrator in question cannot reschedule the hearing
within thirty (30) days of the postponed date, the case
may be reassigned by the Notice Arbitrator to another
panel member who has a hearing date available within the
thirty (30) day period. At the hearing, the parties to
the grievance and the NFLPA and Management Council will
have the right to present, by testimony or otherwise,
and subject to Section 5, any evidence relevant to the
grievance. All hearings will be transcribed.
\If a witness is unable to attend the hearing, the
party offering the testimony shall inform the other
party of the identity and unavailability of the witness
to attend the hearing. At the hearing or within fourteen
(14) days thereafter, the party offering the testimony
of the unavailable witness must offer the other party
two possible dates within the next forty-five (45) days
to take the witness' testimony. The other party shall
have the opportunity to choose the date. The record
should be closed sixty (60) days after the hearing date
unless mutually extended notwithstanding any party's
failure to present post-hearing testimony within the
above-mentioned time period. If a witness is unavailable
to come to the hearing, the witness' testimony may be
taken by telephone conference call if the parties agree.
In cases where the amount claimed is less than $25,000,
the parties may agree to hold the hearing by telephone
conference call. If either party requests
Page 23
post-hearing briefs, the parties shall prepare and
simultaneously submit briefs except in grievances
involving non-suspension Club discipline where less than
$25,000 is at issue, in which cases briefs will not be
submitted. Briefs must be submitted to the arbitrator
postmarked no later than sixty (60) days after receipt
of the last transcript.
Section 8. Arbitrator’s Decision
and Award: The arbitrator will issue a written
decision within thirty (30) days of the submission of
briefs, but in no event shall he consider briefs filed
by either party more than sixty (60) days after receipt
of the last transcript, unless the parties agree
otherwise. The decision of the arbitrator will
constitute full, final and complete disposition of the
grievance, and will be binding upon the player(s) and
Club(s) involved and the parties to this Agreement;
provided, however, that the arbitrator will not have the
jurisdiction or authority: (a) to add to, subtract from,
or alter in any way the provisions of this Agreement or
any other applicable document; or (b) to grant any
remedy other than a money award, an order of
reinstatement, suspension without pay, a stay of
suspension pending decision, a cease and desist order, a
credit or benefit award under the Bert Bell/Pete Rozelle
NFL Player Retirement Plan, or an order of compliance,
with a specific term of this Agreement or any other
applicable document, or an advisory opinion pursuant to
Article XIII (Committees), Section 1(c). In the event
the arbitrator finds liability on the part of the Club,
he shall award interest beginning one year from the date
of the last regular season game of the season of the
grievance. The interest shall be calculated at the
one-year Treasury Note rate published in the Wall Street
Journal as of February 1 (or the next date published) of
each year, and such rate shall apply to any interest
awarded during each such subsequent twelve (12) month
period.
*Extension Agreement 1/8/02
Section 9. Time Limits: Each of
the time limits set forth in this Article may be
extended by mutual written agreement of the parties
involved. If any grievance is not processed or resolved
in accordance with the prescribed time limits within any
step, unless an extension of time has been mutually
agreed upon in writing, either the player, the NFLPA,
the Club or the Management Council, as the case may be,
after notifying the other party of its intent in
writing, may proceed to the next step.
Section 10. Representation: In
any hearing provided for in this Article, a player may
be accompanied by counsel of his choice and/or a
representative of the NFLPA. In any such hearing, a Club
representative may be accompanied by counsel of his
choice and/or a representative of the Management
Council.
Section 11. Costs: All costs of
arbitration, including the fees and expenses of the
arbitrator and the transcript costs, will be borne
equally between the
Page 24
parties. Notwithstanding the above, if the hearing
occurs in the Club city and if the arbitrator finds
liability on the part of the Club, the arbitrator shall
award the player reasonable expenses incurred in
traveling to and from his residence to the Club city and
one night's lodging.
Section 12. Payment: If an award
is made by the arbitrator, payment will be made within
thirty (30) days of the receipt of the award to the
player or jointly to the player and the NFLPA provided
the player has given written authorization for such
joint payment. The time limit for payment may be
extended by mutual consent of the parties or by a
finding of good cause for the extension by the
arbitrator. Where payment is unduly delayed beyond
thirty (30) days, interest will be assessed against the
Club from the date of the decision. Interest shall be
calculated at double the one-year Treasury Note rate
published in the Wall Street Journal as of February 1
(or next date published) of each year, and such rate
shall apply to the interest awarded during each
subsequent twelve (12) month period in lieu of
continuation of any pre-award interest. The arbitrator
shall retain jurisdiction of the case for the purpose of
awarding post-hearing interest pursuant to this Section.
*Extension Agreement 1/8/02
Section 13. Grievance Settlement
Committee: A grievance settlement committee
consisting of the Executive Director of the NFLPA and
the Executive Vice President for Labor Relations of the
NFL shall have the authority to resolve any grievance
filed under this Article. This committee shall meet
periodically to discuss and consider pending grievances.
No evidence will be taken at such meetings, except
parties involved in the grievance may be contacted to
obtain information about their dispute. If the committee
resolves any grievance by mutual agreement of the two
members, such resolution will be made in writing and
will constitute full, final and complete disposition of
the grievance and will be binding upon the player(s) and
the Club(s) involved and the parties to this Agreement.
Consideration of any grievance by this committee shall
not in any way delay its processing through the
non-injury grievance procedure described in this
Article, and no grievance may be resolved pursuant to
this Section once an arbitration hearing has been
convened pursuant to Section 7 hereof.
Page 25
ARTICLE X
INJURY GRIEVANCE
Section 1. Definition: An
"injury grievance" is a claim or complaint
that, at the time a player's NFL Player Contract was
terminated by a Club, the player was physically unable
to perform the services required of him by that contract
because of an injury incurred in the performance of his
services under that contract. All time limitations in
this Article may be extended by mutual agreement of the
parties.
Section 2. Filing: Any player and/or
the NFLPA must present an injury grievance in writing to
a Club, with a copy to the Management Council, within
twenty-five (25) days from the date it became known or
should have become known to the player that his contract
had been terminated. The grievance will set forth the
approximate date of the alleged injury and its general
nature. If a grievance is filed by a player without the
involvement of the NFLPA, the Management Council will
promptly send copies of the grievance and the answer to
the NFLPA.
Section 3. Answer: The Club to
which an injury grievance has been presented will answer
in writing within seven (7) days. If the answer contains
a denial of the claim, the general grounds for such
denial will be set forth. The answer may raise any
special defense, including but not limited to the
following:
(a) That the player did not pass the physical
examination administered by the Club physician at the
beginning of the pre-season training camp for the year
in question. This defense will not be available if the
player participated in any team drills following his
physical examination or in any preseason or regular
season game; provided, however, that the Club physician
may require the player to undergo certain exercises or
activities, not team drills, to determine whether the
player will pass the physical examination;
(b) That the player failed to make full and complete
disclosure of his known physical or mental condition
when questioned during the physical examination;
(c) That the player's injury occurred prior to the
physical examination and the player knowingly executed a
waiver or release prior to the physical examination or
his commencement of practice for the season in question
which specifically pertained to such prior injury;
(d) That the player's injury arose solely from a
non-football-related cause subsequent to the physical
examination;
(e) That subsequent to the physical examination the
player suffered no new football-related injury;
(f) That subsequent to the physical examination the
player suffered no football-related aggravation of a
prior injury reducing his physical capacity below the
level existing at the time of his physical examination
as contemporaneously recorded by the Club physician.
Page 26
Section 4. Neutral Physician: The
player must present himself for examination by a neutral
physician in the Club city or the Club city closest to
the player's residence within twenty (20) days from the
date of the grievance. This time period may be extended
by mutual consent if the neutral physician is not
available. Neither Club nor player may submit any
medical records to the neutral physician, nor may the
Club physician or player's physician communicate with
the neutral physician. The player will notify the Club
of the identity of the neutral physician by whom he is
to be examined as soon as possible subsequent to a
selection by the player. The neutral physician will not
become the treating physician nor will the neutral
physician examination involve more than one office visit
without the prior approval of both the NFLPA and
Management Council. The neutral physician may review any
objective medical tests which all parties mutually agree
to provide. The neutral physician is further authorized
to perform any necessary diagnostic tests after
consultation with the parties. The neutral physician is
required to submit to the parties a detailed typewritten
medical report of his examination. In order to
facilitate settlement of grievances, the parties
periodically will consult with neutral physicians by
telephone conference call to obtain preliminary opinions
as to the length of time, if any, after their
examinations before players would be physically able to
perform contract services. The NFLPA will use its best
efforts to make the neutral physicians in each Club city
equally available to the players who file injury
grievances.
Section 5. Neutral Physician List:
The NFLPA and the Management Council will maintain a
jointly approved list of neutral physicians, including
at least two orthopedic physicians in each city in which
a Club is located. This list will be subject to review
and modification between February 1 and April 15 of each
year, at which time either party may eliminate any two
neutral physicians from the list by written notice to
the other party. When vacancies occur, the NFLPA and the
Management Council will each submit a list of three (3)
orthopedic physicians to the other party within thirty
(30) days for each NFL city where a vacancy exists. If
the parties are unable to agree on a replacement, within
ten (10) days they will select a neutral physician for
each city by alternately striking names. The party to
strike a name first will be determined by a flip of a
coin. If either party fails to cooperate in the striking
process the other party may select one of the nominees
on its list, and the other party will be bound by such
selection. The next vacancy occurring will be filled in
similar fashion with the party who initially struck
first then striking second. The parties will alternate
striking first for future vacancies occurring thereafter
during the term of this Agreement.
Section 6. Appeal: A grievance may be
appealed to an arbitrator by filing of written notice of
appeal with the chairman of the arbitration panel within
Page 27
thirty (30) days from the date of receipt of the
neutral physician's written report.
Section 7. Arbitration Panel:
There will be a panel of five (5) arbitrators, whose
appointment must be accepted in writing by the NFLPA and
the Management Council. The parties have designated
Arthur Stark as the Chairman of the panel. In the event
of a vacancy in the position of the Chairman of the
panel, the senior arbitrator in terms of affiliation
with this Agreement will succeed to the position of
Chairman of the panel, and the resultant vacancy on the
panel will be filled according to the procedures of this
Section. Either party to this Agreement may discharge a
member of the arbitration panel by serving written
notice upon the arbitrator and the other party to this
Agreement between December 1 and 10 of each year, but at
no time shall such discharges result in no arbitrators
remaining on the panel. If either party discharges an
arbitrator, the other party shall have two (2) business
days to discharge any other arbitrator. Any vacancies
occurring on the arbitration panel will be filled as
follows: If the parties are unable to agree to a new
arbitrator within thirty (30) days of the occurrence of
the vacancy, the Chairman of the panel shall submit a
list of ten (10) qualified and experienced arbitrators
to the NFLPA and the Management Council. Within fourteen
(14) days of the receipt of the list, the NFLPA and the
Management Council shall select one arbitrator from the
list by alternately striking names until only one
remains, with a coin flip determining the first strike.
The next vacancy occurring will be filled in similar
fashion, with the party who initially struck first then
striking second. The parties will alternate striking
first for future vacancies occurring thereafter during
the term of this Agreement. If either party fails to
cooperate in the striking process, the other party may
select one of the nominees on the list and the other
party will be bound by such selection.
Section 8. Hearing: Each
arbitrator shall designate a minimum of twelve hearing
dates per year, exclusive of the period July 15 through
September 10, for use by the parties to this Agreement.
Upon being appointed, each arbitrator will, after
consultation with the Chairman, provide to the NFLPA and
the Management Council specified hearing dates for each
of the ensuing six months, which process will be
repeated on a semiannual basis thereafter. The parties
will notify each arbitrator thirty (30) days in advance
of which dates the following month are going to be used
by the parties. The designated arbitrator will set the
hearing on his or her next reserved date in the Club
city, unless the parties agree otherwise. If a grievance
is set for hearing and the hearing date is then
postponed by a party within thirty (30) days of the
hearing date, the postponement fee of the arbitrator
will be borne by the postponing party unless the
arbitrator determines that the postponement was for good
cause. Should good cause be found, the parties will
share any postponement costs equally. If the arbitrator
in question
Page 28
cannot reschedule the hearing within thirty (30) days
of the postponed date, the case may be reassigned by the
Chairman to another panel member who has a hearing date
available within the thirty (30) day period. At the
hearing, the parties to the grievance and the NFLPA and
Management Council will have the right to present, by
testimony or otherwise, any evidence relevant to the
grievance. The NFLPA and the Management Council have the
right to attend all grievance hearings. All hearings
shall be transcribed.
If a witness is unable to attend the hearing, the
party offering the testimony shall inform the other
party of the identity and unavailability of the witness
to attend the hearing. At the hearing or within fourteen
(14) days thereafter, the party offering the testimony
of the unavailable witness must offer the other party
two possible dates within the next forty-five (45) days
to take the witness' testimony. The other party shall
have the opportunity to choose the date. The record
should be closed sixty (60) days after the hearing date
unless mutually extended notwithstanding any party's
failure to present post-hearing testimony within the
above-mentioned time period. If a witness is unavailable
to come to the hearing, the witness' testimony may be
taken by telephone conference call if the parties agree.
In cases where the amount claimed is less than $25,000,
the parties may agree to hold the hearing by telephone
conference call.
Post-hearing briefs must be submitted to the
arbitrator postmarked no later than sixty-five (65) days
after receipt of the last transcript. The arbitrator
will issue a written decision within thirty (30) days of
the submission of briefs but shall not consider briefs
filed by either party more than sixty-five (65) days
after receipt of the last transcript, unless the parties
agree otherwise. The arbitrator's decision will be final
and binding; provided, however, that no arbitrator will
have the authority to add to, subtract from, or alter in
any way any provision of this Agreement or any other
applicable document. In the event the arbitrator finds
liability on the part of the Club, he shall award
interest beginning one year from the date of the last
regular season game of the season of injury. The
interest shall be calculated at the one-year Treasury
Note rate published in The Wall Street Journal as of
February 1 (or the next date published) of each year,
and such rate shall apply to any interest awarded during
each such subsequent twelve (12) month period.
*Extension Agreement 1/8/02
Section 9. Miscellaneous: The
arbitrator will consider the neutral physician's
findings conclusive with regard to the physical
condition of the player and the extent of an injury at
the time of his examination by the neutral physician.
The arbitrator will decide the dispute in light of this
finding and such other issues or defenses which may have
been properly submitted to him. The Club or the
Management Council must advise the grievant and the
NFLPA in writing no later than seven (7) days before the
hearing of any special defense to be raised at the
hearing. The arbitrator may award the player payments
for medical expenses incurred or which will be incurred
in connection with an injury.
Page 29
Section 10. Expenses: Expenses charged
by a neutral physician will be shared equally by the
Club and the player. All travel expenses incurred by the
player in connection with his examination by a neutral
physician of his choice will be borne by the player. The
parties will share equally in the expenses of any
arbitration engaged in pursuant to this Article;
provided, however, the respective parties will bear the
expenses of attendance of their own witnesses.
Notwithstanding the above, if the hearing is held in the
Club city and if the arbitrator finds liability on the
part of the Club, the arbitrator shall award the player
reasonable expenses incurred in travelling to and from
his residence to the Club city and one night's lodging.
Section 11. Pension Credit: Any
player who receives payment for three or more regular
season games during any year as a result of filing an
injury grievance or settlement of a potential injury
grievance will be credited with one year of Credited
Service for the year in which injured under the Bert
Bell/Pete Rozelle NFL Player Retirement Plan as
determined by the Retirement Board.
Section 12. Payment: If an award
is made by the arbitrator, payment will be made within
thirty (30) days of the receipt of the award to the
player or jointly to the player and the NFLPA, provided
the player has given written authorization for such
joint payment. The time limit for payment may be
extended by mutual consent of the parties or by a
finding of good cause for the extension by the
arbitrator. Where payment is unduly delayed beyond
thirty (30) days, interest will be assessed against the
Club from the date of the decision. Interest shall be
calculated at double the one-year Treasury Note rate
published in The Wall Street Journal as of February 1
(or next date published) of each year, and such rate
shall apply to the interest awarded during each such
subsequent twelve (12) month period in lieu of
continuation of pre-award interest. The arbitrator shall
retain jurisdiction of the case for the purpose of
awarding post-hearing interest pursuant to this Section.
*Extension Agreement 1/8/02
Section 13. Presumption of Fitness:
If the player passes the physical examination of the
Club prior to the pre-season training camp for the year
in question, having made full and complete disclosure of
his known physical and mental condition when questioned
by the Club physician during the physical examination,
it will be presumed that such player was physically fit
to play football on the date of such examination.
Section 14. Playoff Money: If
the arbitrator finds that an injured player remained
physically unable to perform the services required of
him by his contract during the NFL postseason playoffs
and if the Club in question participated in the playoffs
that season, the player will be entitled to and the
arbitrator shall award, such playoff money as though he
had been on
Page 30
the Injured Reserve list at the time of the playoff
games in question, should he otherwise qualify for such
pay pursuant to Article XLII (Postseason Pay).
Section 15. Information Exchange:
The NFLPA and the Management Council must confer on a
regular basis concerning the status of pending injury
grievances and the attribution of any injury grievance
exposure to Team Salary under Article XXIV (Guaranteed
League-wide Salary, Salary Cap & Minimum Team
Salary). Any communications pursuant to this Section are
inadmissible in any grievance hearing.
Section 16. Discovery: No later
than ten (10) days prior to the hearing, each party will
submit to the other copies of all documents, reports and
records relevant to the injury grievance hearing.
Failure to submit such documents, reports and records no
later than ten (10) days prior to the hearing will
preclude the non-complying party from submitting such
documents, reports and records into evidence at the
hearing, but the other party will have the opportunity
to examine such documents, reports and records at the
hearing and to introduce those it so desires into
evidence, except that relevant documents submitted to
the opposing party less than ten (10) days before the
hearing shall be admissible provided the offering party
and the custodian(s) of the documents made good faith
effort to obtain (or discover the existence of) such
documents or that the documents' relevance was not
discovered until the hearing.
Page 31
ARTICLE XI
COMMISSIONER DISCIPLINE
Section 1. League Discipline:
Notwithstanding anything stated in Article IX
(Non-Injury Grievance):
(a) All disputes involving a fine or suspension
imposed upon a player for conduct on the playing field
other than as described in subsection (b) below, or
involving action taken against a player by the
Commissioner for conduct detrimental to the integrity
of, or public confidence in, the game of professional
football, will be processed exclusively as follows: the
Commissioner will promptly send written notice of his
action to the player, with a copy to the NFLPA. Within
twenty (20) days following such written notification,
the player affected thereby, or the NFLPA with the
player's approval, may appeal in writing to the
Commissioner.
(b) Fines or suspensions imposed upon players for
unnecessary roughness or unsportsmanlike conduct on the
playing field with respect to an opposing player or
players shall be determined initially by a person
appointed by the Commissioner after consultation
concerning the person being appointed with the Executive
Director of the NFLPA, as promptly as possible after the
event(s) in question. Such person will send written
notice of his action to the player, with a copy to the
NFLPA. Within ten (10) days following such notification,
the player, or the NFLPA with his approval, may appeal
in writing to the Commissioner.
(c) On receipt of a notice of appeal under subsection
(a) or (b) above, the Commissioner will designate a time
and place for a hearing to be commenced within ten (10)
days thereafter, at which he or his designee (other than
the person appointed in (b) above) will preside. The
Commissioner will consult with the Executive Director of
the NFLPA concerning the person to serve each season as
the Commissioner's designee. The hearing may be by
telephone conference call, if the player so requests. As
soon as practicable following the conclusion of such
hearing, the Commissioner will render a written decision
which will constitute full, final and complete
disposition of the dispute and will be binding upon the
player(s) and Club(s) involved and the parties to this
Agreement with respect to that dispute. Any discipline
imposed pursuant to subparagraph (b) above may only be
affirmed, reduced, or vacated by the Commissioner in
such decision, and may not be increased.
* Side Letter 12/1/00
Section 2. Time Limits: Each of the
time limits set forth in this Article may be extended by
mutual agreement of the Commissioner and the player(s)
and the Club(s) involved.
Section 3. Representation: In
any hearing provided for in this Article, a player may
be accompanied by counsel of his choice. A
representative of the NFLPA may also participate in such
hearing and represent the player. In any such hearing, a
Club representative may be accompanied by counsel of his
choice. A representative of the Management Council may
also
Page 32
participate in such hearing and represent the
Club. The NFLPA and Management Council have the right to
attend all hearings provided for in this Article. At the
hearing, the player, the NFLPA and the Management
Council will have the right to present, by testimony or
otherwise, any evidence relevant to the hearing. All
hearings shall be transcribed.
Section 4. Costs: Unless the
Commissioner determines otherwise, each party will bear
the cost of its own witnesses, counsel and the like.
Section 5. One Penalty: The
Commissioner and a Club will not discipline a player for
the same act or conduct. The Commissioner’s
disciplinary action will preclude or supersede
disciplinary action by any Club for the same act or
conduct.
Section 6. Fine Money: Any fine
money collected pursuant to this Article will be
contributed to the Brian Piccolo Cancer Fund, the
Vincent T. Lombardi Cancer Research Center, ALS
Neuromuscular Research Foundation, and the NFLPA Players
Assistance Trust (“P.A.T.”). Any such fine money
shall be allocated equally among the four (4)
organizations mentioned in the preceding sentence.
Page 33
ARTICLE XII
INJURY PROTECTION
Section 1. Qualification: A player
qualifying under the following criteria will receive an
injury protection benefit in accordance with Section 2
below:
(a) The
player must have been physically unable, because of a
severe football injury in an NFL game or practice, to
participate in all or part of his Club’s last game of
the season of injury, as certified by the Club physician
following a physical examination after the last game; or
the player must have undergone Club‑authorized
surgery in the off-season following the season of
injury; and
(b) The
player must have undergone whatever reasonable and
customary rehabilitation treatment his Club required of
him during the off‑season following the season of
injury; and
(c) The
player must have failed the pre‑season physical
examination given by the Club physician for the season
following the season of injury because of such injury
and as a result his Club must have terminated his
contract for the season following the season of injury.
This pre‑season physical may be given by the Club
physician prior to the beginning of pre‑season
camp, so long as such fact is clearly communicated to
the player at the time of the physical exam. The past
understanding of the parties concerning a Club releasing
a player who otherwise qualifies under (a) and (b) above
prior to the pre‑season physical examination will
apply during the term of this Agreement (see Appendix
B).
Section 2. Benefit:
Notwithstanding anything stated in Article IX
(Non-Injury Grievance):
(a) All disputes involving a fine or suspension imposed
upon a player for conduct on the playing field other
than as described in subsection (b) below, or involving
action taken against a player by the Commissioner for
conduct detrimental to the integrity of, or public
confidence in, the game of professional football, will
be processed exclusively as follows: the Commissioner
will promptly send written notice of his action to the
player, with a copy to the NFLPA. Within twenty (20)
days following such written notification, the player
affected thereby, or the NFLPA with the player's
approval, may appeal in writing to the Commissioner.
(b) Fines or suspensions imposed upon players for
unnecessary roughness or unsportsmanlike conduct on the
playing field with respect to an opposing player or
players shall be determined initially by a person
appointed by the Commissioner after consultation
concerning the person being appointed with the Executive
Director of the NFLPA, as promptly as possible after the
event(s) in question. Such person will send written
notice of his action to the player, with a copy to the
NFLPA. Within ten (10) days following such notification,
the player, or the NFLPA with his approval, may appeal
in writing to the Commissioner.
(c) On receipt of a notice of appeal under subsection
(a) or (b) above, the Commissioner will designate a time
and place for a hearing to be commenced within ten (10)
days thereafter, at which he or his designee (other than
the person appointed in (b) above) will preside. The
Commissioner will consult with the Executive Director of
the NFLPA concerning the person to serve each season as
the Commissioner's designee. The hearing may be by
telephone conference call, if the player so requests. As
soon as practicable following the conclusion of such
hearing, the Commissioner will render a written decision
which will constitute full, final and complete
disposition of the dispute and will be binding upon the
player(s) and Club(s) involved and the parties to this
Agreement with respect to that dispute. Any discipline
imposed pursuant to subparagraph (b) above may only be
affirmed, reduced, or vacated by the Commissioner in
such decision, and may not be increased.
* Side Letter 12/1/00 Effective after the
execution of this Agreement, a player qualifying under
Section 1 above will receive an amount equal to 50% of
his contract salary for the season following the season
of injury, up to a maximum payment of $225,000 for
the 2002 League Year, $250,000 for the 2003-05 League
Years, and $275,000 for the 2006-07 League Years. A
player will receive no amount of any contract covering
any season subsequent to the season following the season
of injury, except if he has individually negotiated
injury protection into that contract. The benefit will
be paid to the player in equal weekly installments
commencing no later than the date of the first regular
season game, which benefit payments will cease if the
player signs a contract for that season with another
Club. A player will not be entitled to such benefit more
than once during his playing career in the NFL, and such
benefit shall be reduced by any salary guaranteed to the
player for the season following the season of injury.
* Extension Agreement 1/8/02
Page 34
Section 3. Disputes: Any dispute
under this Article will be processed under Article IX
(Non‑Injury Grievance).In any grievance in
which the NFLPA or a player is claiming an injury
protection benefit, the NFLPA or the player may contend
that the player should not have passed the pre-season
physical examination given by a Club following the
season of a player’s injury. In any such grievance,
the NFLPA or the player may introduce evidence from a
physician selected by and paid for by the player
regarding the player’s physical condition at the time
of the Club’s pre-season physical exam, provided that
such physician conducted his examination of the player
within fourteen days of the player’s contract
termination, but no later than the date of the first
pre-season cutdown. Any such evidence will be considered
with the evidence from the Club physician, and the
arbitrator shall give no special deference to the
evidence presented by either physician. If the NFLPA
prevails in such a grievance, then the requirements of
Section 1(c) above shall be deemed to have been
satisfied.
·
Extension Agreement 2/25/98
Page 35
ARTICLE XIII
COMMITTEES
Section 1. Joint Committee:
(a) A Joint Committee on Player Safety and Welfare
(hereinafter the "Joint Committee") will be
established for the purpose of discussing the player
safety and welfare aspects of playing equipment, playing
surfaces, stadium facilities, playing rules,
player-coach relationships, and any other relevant
subjects. The Joint Committee will consist of six
members: three Club representatives (plus advisors) and
three NFLPA representatives (plus advisors). The Joint
Committee will hold two regular meetings each year on
dates and at sites selected by the Committee. Special
meetings may be held at any time and place mutually
agreeable to the Committee. The Joint Committee will not
have the power to commit or bind either the NFLPA or the
Management Council on any issue. The Joint Committee may
discuss and examine any subject related to player safety
and welfare it desires, and any member of the Committee
may present for discussion any such subject. Any
Committee recommendation will be made only to the NFLPA,
the Management Council, the Commissioner, or any
appropriate committee of the NFL; such recommendation
will be given serious and thorough consideration.
(b) The Joint Committee may employ consultants to assist
it in the performance of its functions; the compensation
and expenses of any such consultants will be paid in
such manner as the Committee decides. The respective
members of the Joint Committee will be selected and the
length of their terms fixed under such rules as the
NFLPA and the Management Council separately establish;
the original appointees on the Committee will be
selected within thirty (30) days following the execution
of this Agreement. The NFLPA and the Management Council
agree that a task for the Joint Committee to undertake
promptly upon the execution of this Agreement is a
review of all current materials on the player safety
aspects of player equipment, playing surfaces, including
artificial turf and other safety matters.
(c) Immediately following the NFL annual meeting, the
NFLPA will be given notice of all proposed playing rule
changes, either tentatively adopted by the Clubs or put
over for further consideration at a later league
meeting. If the NFLPA believes that the adoption of a
playing rule change would adversely affect player
safety, then within seven (7) days of receiving such
notice the NFLPA may call a meeting of the Joint
Committee to be held within one (1) week to discuss such
proposed rule change. Within five (5) days after such
meeting, if the NFLPA continues to believe that the
adoption of a playing rule change would adversely affect
player safety, the NFLPA may request an advisory
decision by one of the arbitrators designated in Article
IX (Non-Injury Grievance). A hearing before such
arbitrator must be held within seven (7) days of the
Joint Committee meeting and
Page 36
the arbitrator must render his decision within one
(1) week of the hearing. No such playing rule change
will be made by the Clubs until after the arbitrator's
advisory decision unless the arbitrator has not rendered
his decision within one (1) week of the hearing. The
arbitrator's decision will be advisory only, not final
and binding. Except as so limited, nothing in this
section will impair or limit in any way the right of the
Clubs to make any playing rule change whatsoever.
(d) The NFLPA shall have the right to commence an
investigation before the Joint Committee if the NFLPA
believes that the medical care of a team is not
adequately taking care of player safety. Within 60 days
of the initiation of an investigation, two or more
neutral physicians will be selected to investigate and
report to the Joint Committee on the situation. The
neutral physicians shall issue a written report within
60 days of their selection, and their recommendations as
to what steps shall be taken to address and correct any
issues shall be acted upon by the Joint Committee.
* Extension Agreement 1/8/02
Section 2. Competition Committee:
The NFLPA will have the right to appoint two persons to
attend those portions of the annual meeting of the NFL
Competition Committee dealing with playing rules to
represent the players’ viewpoint on rules. One of the
appointees shall have a vote on all matters considered
at the meeting which relate to playing rules. The NFLPA
appointees will receive in advance copies of all agenda
and other written materials relating to playing rules
provided to other Committee members.
Section 3. Player/Club Operations
Committee:
(a) A
Player/Club Operations Committee (hereinafter the
“Operations Committee”) shall be established for the
purpose of examining issues arising with respect to the
implementation of this Agreement. The Operations
Committee may discuss and examine, and jointly decide,
any such issues; provided, however, that any
consideration by the Operations Committee shall not
delay any grievance or other procedure under this
Agreement, unless the Committee jointly decides
otherwise.
(b)
The Operations Committee will consist of up to six (6)
members: the Executive Vice President for Labor
Relations of the NFL and a maximum of two (2) Club
representatives (plus advisors), and the Executive
Director of the NFLPA and a maximum of two (2) NFLPA
representatives (plus advisors). The respective
additional members of the Operations Committee will be
selected and the length of their terms fixed under such
rules as the NFLPA and the Management Council separately
establish; the original additional members on the
Operations Committee will be selected within thirty (30)
days following the execution of this Agreement. An equal
number on each side shall sit on all matters, and the
Committee shall jointly decide whether the Committee
shall sit with two (2), four (4) or six (6) members on
any given matter. The Operations Committee will hold
meetings on dates and at sites mutually agreeable to the
Committee members.
Page 37
ARTICLE XIV
NFL PLAYER CONTRACT
Section 1. Form: The NFL Player
Contract form attached hereto as Appendix C will be used
for all player signings. This form cannot be amended
without the approval of the Management Council and the
NFLPA.
* [U]se [of] one contract form for a multi-year deal
between a player and a club (as opposed to using a
series of one-year contract forms as in the past) does
not expand the period of time for which a club is
obligated to provide an injured player with medical and
hospital care…[W]e agree that Paragraph 9 of the new
NFL Player Contract gives the same coverage in this
respect as Paragraph 9 of the old form.
*Side Letter 8/4/93
Section 2. Term: The NFL Player
Contract shall be modified to expire on the last day of
the last League Year subject to such Contract.
Section 3. Changes:
(a)
Notwithstanding Section 1 above, changes may be agreed
to between a Club and a player in a player’s contract
or contracts consistent with the provisions of this
Agreement and the Settlement Agreement.
(b) The
NFL Player Contract shall be modified to provide that,
other than any rights the player may have as a member of
the class in White v. NFL, No.
4‑92‑906 (D. Minn.) to object to the
Settlement Agreement during its review by the District
Court, the player waives and releases any claims: (i)
arising out of, related to, or asserted in that action;
and (ii) for conduct engaged in pursuant to the
Settlement Agreement during the express term of the
Settlement Agreement.
(c)
Any waiver and release included in the NFL Player
Contract pursuant to this Article does not supersede and
is subject to the provisions set forth in Article XXVI
(Termination Prior to Expiration Date) of the Settlement
Agreement, and Article LVIII (Duration of Agreement) of
this Agreement. Specifically, in the event that the
Settlement Agreement is terminated, not approved or
invalidated on appeal, pursuant to Article XXVI
(Termination Prior to Expiration Date) of the Settlement
Agreement, any such waiver and release shall remain or
not remain in effect to the extent that the releases and
covenants not to sue set forth in Article XIX (Releases
and Covenants Not to Sue) of the Settlement Agreement
remain or do not remain in effect. Except in the
circumstances described in the preceding sentence, this
subparagraph shall not affect the validity or
enforceability of any release and waiver contained in a
Player Contract executed on or after March 1, 1993.
Page 38
Section 4. Conformity: All Player
Contracts signed prior to the execution of this
Agreement and in effect during the term of this
Agreement shall be deemed amended in such a manner to
require the parties to comply with the mandatory terms
of this Agreement and the Settlement Agreement.
* With respect to any League Year subsequent to the
2001 League Year, if an incentive or Roster Bonus is
earnable on a specific date, or if a voidable, buyback,
or Club option is conditioned upon the player's being on
the Club's roster on a specified date (or sets forth a
specified date upon which, or before which, the player
or Club is required to provide notice of an intent to
exercise, or to exercise, the voidable, buyback, or Club
option), it shall be treated as follows:
(a) The NFLPA and the Management Council shall
determine a date that is not less than sixty days before
the Monday preceding that year's College Draft (the
"Measuring Date").
(b) The specified date shall be moved so that it
falls on, before or after the commencement date of that
League Year by the same number of days that the
specified date falls on, before or after the Measuring
Date described in (a) above.
If such an "event" is scheduled for a
specified date between the Super Bowl and the day
preceding the Measuring Date, it shall be moved so that
it falls the same number of days before the start of the
League Year that the specified date falls before the
Measuring Date. If such an "event" is
scheduled for a specified date between April 2 and the
day preceding the subsequent Super Bowl, the specified
date shall not be moved.
If any NFL Player Contract sets forth a specific date
(e.g., "February 14, 2002") or describes a
specific day (e.g. "last day of the 2001 League
Year") upon which, or before which, the Player is
required to provide notice of an intent to exercise, or
to exercise, a voidable affecting the following League
Year or upon which an NFL Player Contract affecting the
following League Year shall void automatically, and if
such date or day would, as a result of this agreement,
otherwise be moved to a date or day falling on or after
the last day of the period for designation of Franchise
and Transition Players, then such date or day shall be
moved to the twelfth day of the designation period (e.g.
February 18 in the 2002 League Year). If any voidable is
moved in accordance with this paragraph, then any
corresponding buyback affecting the following League
Year shall also be moved so that it falls the same
number of days on, before or after the twelfth day of
the designation period that it fell on, before or after
the date or day specified for the voidable in the
original Player Contract. Not later than February 8 of
each League Year, the Management Council shall provide
the NFLPA with a list setting forth the name of each
player who has a right affecting the following League
Year if such right is to be moved in accordance with
this paragraph. No player's right shall be moved in
accordance with this paragraph unless such player's name
is set forth in said list; however, the Club may
designate any such player as a Franchise or Transition
Player on a conditional basis within the prescribed
designation period notwithstanding any failure by the
Management Council to include the player's name on the
above-described February 8 list. In the event such an
omitted player elects to exercise his right of
termination affecting the following League Year on the
date prescribed in his contract, no further action need
be taken by the designating Club to perfect its
designation right, and the Club's conditional
designation shall be deemed effective on an
unconditional basis as of the date and time it was
originally made.
The preceding paragraphs apply only to Player Contracts
executed before March 2, 2001 and do not apply to Player
Contracts executed on or after that date. The NFLPA and
the Management Council will reach an agreement as to the
appropriate treatment of all other contractual rights in
Player Contacts executed before March 2, 2001, to ensure
that such rights remain exercisable in the League Year
intended by the parties to the relevant NFL Player
Contract. If the parties fail to reach agreement, the
Special Master shall decide the League Year intended by
the parties to the NFL Player Contract.
* Side Letter 1/22/01
Section 5. General:
(a) Any
agreement between any player and any Club concerning
terms and conditions of employment shall be set forth in
writing in a Player Contract as soon as practicable. The
League shall provide to the NFLPA a copy of each
executed Player Contract it receives from a Club within
two business days of its receipt of such Player
Contract. The League shall provide to the NFLPA any
salary information received from a Club which is
relevant to whether such Player Contract complies with
Article XVII (Entering Player Pool) and/or Article XXIV
(Guaranteed League‑wide Salary, Salary Cap &
Minimum Team Salary), within two business days following
the NFL’s receipt of such information.
* In order to assist the efficient operation of the
Salary Cap, with respect to each Player Contract
executed after the date of this letter: (i) each Club
shall provide to the NFL Management Council (“NFLMC”)
a copy of each such Player Contract within two days of
the execution of such contract by the player and the
Club; (ii) notwithstanding Article XIV, Section 5(a) of
the CBA, the NFLMC shall provide a copy of each such
Player Contract to the NFLPA within two days of its
receipt by the NFLMC; and (iii) the NFLMC shall provide
to the NFLPA as soon as reasonably practicable a copy of
any page of each such Player Contract that has on it the
signature of the player’s representative if such copy
has not already been provided to the NFLPA by the NFLMC.
It is anticipated that each Club will send a copy of
each such Player Contract to the NFLMC by overnight mail
the day it is so executed, and the NFLMC will send a
copy of such copy to the NFLPA by overnight mail the day
it [is] so received.
*Side Letter 5/24/95: Sec. 13
* In the event that an Unrestricted Free Agent signs
a Player Contract with a Club other than his prior Club
between July 5 and July 15, the Player or his Agent
shall promptly notify the Players Association, which
will promptly notify the NFL Management Council in
writing, and the New Club shall promptly notify the NFL
Management Council, in writing, of such signing. If
neither
Page 39
the NFL Management Council nor the Players
Association has received any such written notice prior
to midnight on July 15, such Player Contract shall be
deemed not to have been signed within the signing period
prescribed by Article XIX, Section 1(b)(i) of the CBA.
*Side Letter 3/3/97: Sec. 2
(b) Any
agreement between any player or Player Affiliate and any
Club or Club Affiliate providing for the player to be
compensated by the Club or Club Affiliate for
non‑football-related services shall be set forth
in writing and disclosed and provided to the League
within five business days of the execution or making of
the agreement. The NFL shall provide such information to
the NFLPA within two business days of the receipt of
such information.
(c) No
Club shall pay or be obligated to pay any player or
Player Affiliate (not including retired players) other
than pursuant to the terms of a signed NFL Player
Contract or a contract for non‑football related
services as described in Section 5(b) above. Nothing
contained in the immediately preceding sentence shall
interfere with a Club’s obligation to pay a player
deferred compensation earned under a prior Player
Contract.
(d) During the period any
Salary Cap is in effect, in addition to any rights a
Club may presently have under the NFL Player Contract,
any Player Contract may be terminated if, in the
Club’s opinion, the player being terminated is
anticipated to make less of a contribution to the
Club’s ability to compete on the playing field than
another player or players whom the Club intends to sign
or attempt to sign, or another player or players who is
or are already on the roster of such Club, and for whom
the Club needs Room. This paragraph shall not affect any
Club or Club Affiliate’s obligation to pay a player
any guaranteed consideration.
Section 6. Commissioner Disapproval: If
the Commissioner disapproves a Player Contract for any
reason, he must inform the NFLPA in writing of the
reasons therefore by noon on the date following such
disapproval.
*[I]n the event the Commissioner disapproves any
Player Contract as being in violation of the Salary Cap
or Entering Player Pool, or any other provision of the
Settlement Agreement or corresponding provision of the
CBA, the filing of an appeal of such disapproval
pursuant to Article XV, Paragraph 5 or Article XXII,
Paragraph 1 of the Settlement Agreement, or Article XXV,
Section 5 or Article XXVI, Section 1 of the CBA, shall
automatically stay the Commissioner’s disapproval, and
the player shall continue to be free to practice and
play for the Club, until
Page 40
the Special Master (or the District Court
acting in lieu of the Special Master) issues its ruling.
Provided, however, that in the event such
Special Master appeal is filed within one week of or
after the first scheduled regular season game of the
Club: (i) the appeal shall be conducted in an expedited
manner and shall be concluded within five days of the
filing date of such appeal; and (ii) the Special Master
shall issue his ruling by the end of such five day
period. Provided, further, that, in the
event the appeal is filed after the Club’s first
pre-season game, but before the date one week before the
Club’s first scheduled regular season game: (i) the
appeal shall be conducted in an expedited manner and
shall be concluded within ten days of the filing date of
such appeal; and (ii) the Special Master shall issue his
ruling by the end of such ten day period. If there is no
ruling by the end of the periods prescribed in the
preceding two sentences, or, for earlier filed appeals,
by the day following the Club’s third pre-season game,
the automatic stay shall be dissolved. If the
Commissioner disapproves a Player Contract for any of
the reasons stated above on a second occasion for the
same player during a given League Year, and determines
that such player should not be able to play, there shall
be no stay of such disapproval pursuant to this
agreement, unless it is determined that the
Commissioner’s second disapproval is arbitrary or
capricious. This agreement shall not prejudice or affect
in any way, or constitute a waiver with respect to, any
rights of class members to seek a stay or injunctive
relief before the District Court, pursuant to the
Federal Rules of Civil Procedure; nor shall it prejudice
or affect in any way the rights of the NFL to oppose, or
the arguments of the NFL in opposition, to such a stay.
*Side Letter 1/18/94: Sec. 2
Section 7. NFLPA Group Licensing Program:
The NFL Player Contract shall include, solely for the
administrative convenience and benefit of the player and
the NFLPA, the provision set forth in paragraph 4a of
Appendix C, regarding the NFLPA Group Licensing Program.
Neither the League nor any Club is a party to, or a
beneficiary of, the terms of that provision.
Section 8. Good Faith Negotiation:
In addition to complying with specific provisions in
this Agreement, any Club or player engaged in
negotiations for a Player Contract (including any Club
extending, and any player receiving, a Required Tender)
is under an obligation to negotiate in good faith.
Page 41
* The parties hereby agree that pursuant to Article
14, Section 8 of the Collective Bargaining Agreement, a
Club extending a Required Tender must, for so long as
that Tender is extended, have a good faith intention to
employ the player receiving the Tender at the Tender
compensation level during the upcoming season. It shall
be deemed to be a violation of this provision if, while
the tender is outstanding, a Club insists that such a
player agree to a Player Contract at a compensation
level during the upcoming season below that of the
Required Tender amount. The foregoing shall not affect
any rights that a Club may have under the Player
Contract, under the CBA, or under the Stipulation and
Settlement Agreement, including but not limited to the
right to terminate the contract, renegotiate the
contract, or to trade the player if such termination,
renegotiation, or trade is otherwise permitted by the
Player Contract, CBA, or Stipulation and Settlement
Agreement.
*Side Letter 3/3/97: Sec. 1
Page 42
ARTICLE XV
OPTION CLAUSE
Section 1. Prohibition: Commencing with
the execution of this Agreement, the option clause
contained in the NFL Player Contract shall be
discontinued. Any option clause must be negotiated as a
separate addendum to the revised NFL Player Contract
form. Any negotiated option clause must state the dollar
amount(s) to be paid to the player during the option
year.
Section 2. Existing Option Clauses:
If any option clause contained in an NFL Player Contract
in existence at the time of the execution of this
Agreement is exercised by the Club, it shall be at the
rate of salary specified. The player will also receive
100% of performance bonus provisions where the bonus is
earned in the option year.
Page 43
ARTICLE XVI
COLLEGE DRAFT
Section 1. Time of Draft:
Commencing with the 1993 Annual Selection Meeting (the
“College Draft” or “Draft”), and with respect to
the Draft to be held each League Year thereafter during
the term of this Agreement, as well as the Draft to be
held in the League Year immediately following the
expiration or termination of this Agreement (which Draft
shall be held between February 14 and May 2,
2005, unless the extension of this Agreement is
canceled by either of the parties hereto as
set forth in Article LXI (Extension of Agreement), in
which case such draft shall be held between February 14
and May 2, 2004), and the subsequent implementation
of each such Draft during the applicable League Year,
the following rules shall apply:
*Extension Agreement 2/25/98
Section 2. Number of Choices:
With the exception of the 1993 Draft, the Draft shall
consist of seven rounds, with each round consisting of
the same number of selection choices as there will be
Clubs in the NFL the following League Year, plus a
maximum number of additional Compensatory Draft
Selections equal to the number of Clubs then in the
League, with such Compensatory Draft Selections reserved
for Clubs losing certain Unrestricted Free Agents. For
the 1993 League Year only, the Draft shall consist of
eight rounds without any additional Compensatory Draft
Selections, except any additional selections as provided
in Article XX (Franchise and Transition Players),
Section 13. To the extent that the Compensatory Draft
Selections referred to in Article XX (Franchise and
Transition Players), Section 13 are not all awarded for
use in the 1993 League Year Draft, such remaining
selections are reserved for the Drafts in subsequent
League Years under this Agreement in addition to the
maximum number of selections set forth in the first
sentence of this Section 2. Each Draft to be held after
the 1996 League Year shall be held between February 14
and May 2, on a date which shall be determined by the
Commissioner.
Section 3. Required Tender: A
Club that drafts a player shall be deemed to have
automatically tendered the player a one year NFL Player
Contract for the Minimum Active/Inactive List Salary
then applicable to the player pursuant to the terms of
this Agreement. The NFL or the Club shall provide the
player with notice of such Required Tender before or
immediately following the Draft.
Section 4. Signing of Drafted
Rookies:
(a) A
drafted player may accept the Required Tender at any
time up to and including the Tuesday following the tenth
week of the regular season immediately following the
Draft, at 4:00 p.m. New York time. In the event the
exclusive negotiating rights to the drafted player are
assigned to
Page 44
another Club through the NFL waiver system, the
acquiring Club must immediately extend the Required
Tender following assignment. If released through
waivers, the player shall be treated as an Undrafted
Rookie Free Agent, with the right to sign an NFL Player
Contract with any Club. If the Club that drafted the
player signs the player after he is waived and becomes a
Rookie Free Agent, the player’s entire salary shall be
counted against the Entering Player Pool, in the manner
described in Article XVII (Entering Player Pool).
(b) If a
Drafted Rookie has not signed a Player Contract during
the period from the date of such Draft to the thirtieth
day prior to the beginning of the regular season: (i)
the Club that drafted the player may not thereafter
trade to another Club either its exclusive negotiating
rights to such player or any Player Contract that it
signs with such player for the player’s initial League
Year; and (ii) the Club that drafted the player is the
only Club with which the player may sign a Player
Contract until the day of the Draft in the subsequent
League Year, at which time such player is eligible to be
drafted in the subsequent League Year’s Draft by any
Club except the Club that drafted him in the initial
Draft. (After the Tuesday following the tenth week of
the regular season, the player and the Club may only
sign a Player Contract for future League Year(s)).
(c) If a
Drafted Rookie has not signed a Player Contract by the
Tuesday following the tenth week of the regular season,
at 4:00 p.m. New York time, the player shall be
prohibited from playing football in the NFL for the
remainder of that League Year, absent a showing to the
Impartial Arbitrator of extreme Club or extreme personal
hardship. The determination of the Impartial Arbitrator
shall be made within five days of the application, and
shall be based upon all information relating to such
hardship submitted by such date. The determination of
the Impartial Arbitrator shall be final and binding upon
all parties.
Section 5. Other Professional Teams:
(a)
Notwithstanding Section 4(b) above, if a player is
drafted by a Club and, during the period between the
Draft and the next annual Draft, signs a contract with,
plays for or is employed by a professional football team
not in the NFL during all or any part of the 12 month
period following the initial Draft, then the drafting
Club (or any assignee Club) shall retain the exclusive
NFL rights to negotiate for and sign a contract with the
player until the day of the Draft three League Years
after the initial Draft, and shall thereafter have a
Right of First Refusal as described herein, and the
player may receive offers from any Club at any time
thereafter. The player shall notify the NFLPA and the
NFL of his desire to sign a contract with an NFL Club,
and of the date on which the player will be free of his
other contractual obligations of employment, if any.
Within thirty days of receipt of such notice by the NFL
or the date of the availability of such player,
whichever is later, the NFL Club that drafted the player
must tender a one
Page 45
year written Player Contract to the player in
order to retain its rights to that player, as detailed
below.
(b) For a
player to whom the drafting Club retains the exclusive
NFL rights to negotiate pursuant to Section 4(a) above,
the Club must tender a one year Player Contract with
salary of at least the Minimum Active/Inactive List
Salary for players with less than one credited season,
as defined in Article XVIII (Veterans With Less Than
Three Accrued Seasons), Section 3, within the thirty day
period specified in subsection (a) above. The amount of
such tender and/or any Player Contract entered into with
the player shall be subject to the Entering Player Pool,
as set forth in Article XVII (Entering Player Pool). If
the player is released through waivers, the player
immediately becomes a Free Agent, with the right to sign
an NFL Player Contract with any Club, and any Club is
then free to negotiate for and sign a Player Contract
with such player, without any Draft Choice Compensation
between Clubs or First Refusal Rights of any kind, or
any signing period.
(c) For
players with respect to whom the drafting Club retains a
Right of First Refusal pursuant to this Section 5,
during each League Year the player shall be treated as
if he were a Restricted Free Agent not subject to Draft
Choice Compensation, as described in Article XIX
(Veteran Free Agency), Section 2, except as otherwise
set forth in this Section 5. For such players subject to
a Right of First Refusal, the Club must tender a one
year Player Contract with at least the Minimum
Active/Inactive List Salary for players with two or more
Credited Seasons, as defined in Article XVIII (Veterans
With Less Than Three Accrued Seasons), Section 3, within
the thirty day period specified in subsection (a) above.
The amount of such tender and/or any Player Contract
entered into with the player shall not be subject to the
Entering Player Pool. If the Club does not make or
withdraws the Required Tender, the player immediately
becomes a Rookie Free Agent, with the right to negotiate
and sign a Player Contract with any Club, and any Club
is then free to negotiate for and sign a Player Contract
with such player, without any Draft Choice Compensation
between Clubs or First Refusal Rights of any kind, or
any signing period.
(d) [no
longer applicable]
Section 6. Return to College: If any
college football player who becomes eligible for the
Draft prior to exhausting his college football
eligibility through participation is drafted by an NFL
Club, and returns to college, the drafting Club’s
exclusive right to negotiate and sign a Player Contract
with such player shall continue through the date of the
Draft that follows the last season in which the player
was eligible to participate in college football, and
Page 46
thereafter the player shall be treated and the
Club shall have such exclusive rights as if he were
drafted in such Draft by such Club (or assignee Club).
Section 7. Assignment of Draft Rights:
In the event that the exclusive right to negotiate for a
Drafted Rookie under Sections 4, 5 or 6 above is
assigned from one Club to another Club, the Club to
which such right has been assigned shall have the same,
but no greater, right to such player, including the
Right of First Refusal described in Section 5, as would
the Club assigning such right, and such player shall
have the same, but no greater, obligation to the NFL
Club to which such right has been assigned as he had to
the Club assigning such right.
Section 8. Subsequent Draft: A
Club that, in a subsequent Draft, drafts a player who
(a) was selected in an initial Draft, and (b) did not
sign a contract with the NFL Club that drafted him or
with any assignee Club during the signing period set
forth in Sections 4 through 6 above, shall, during the
period from the date of the subsequent Draft to the date
of the Draft held the subsequent League Year, be the
only NFL Club that may negotiate with or sign a Player
Contract with such player. If such player has not signed
a Player Contract within the period beginning on the
date of the subsequent Draft and ending on the thirtieth
day prior to the beginning of the regular season, the
Club loses all rights to trade its exclusive negotiating
rights to such player or any Player Contract that it
signs with such player for the player’s initial League
Year. After the Tuesday following the tenth week of the
regular season, the player and the Club may only sign a
Player Contract for future League Year(s), except as
provided in Section 4(c) above. If the player has not
signed a Player Contract by the day of the next annual
College Draft following the subsequent Draft, the player
immediately becomes a Rookie Free Agent, with the right
to negotiate and sign a Player Contract with any Club,
and any Club is then free to negotiate for and sign a
Player Contract with such player, without any Draft
Choice Compensation between Clubs or First Refusal
Rights of any kind, or any signing period.
Section 9. No Subsequent Draft:
If a player is drafted by a Club in an initial Draft and
(a) does not sign a contract with a Club during the
signing period set forth in Sections 4 through 6 above,
and (b) is not drafted by any Club in the subsequent
Draft, the player immediately becomes an Undrafted
Rookie, with the right to negotiate and sign a Player
Contract with any Club, and any Club is then free to
negotiate for and sign a Player Contract with such
player, without any Draft Choice Compensation between
Clubs or First Refusal Rights of any kind, or any
signing period.
Section 10. Compensatory Draft
Selections: The rules and procedures regarding
Compensatory Draft Selections set forth in Section 2
above shall be as agreed upon by the NFL and the NFLPA.
Page 47
Section 11. Undrafted Rookies:
Any person who has not been selected by a Club in a
College Draft shall be free, after the completion of a
College Draft for which he is eligible, to negotiate and
sign a Player Contract with any Club, and any Club shall
be completely free to negotiate and sign a Player
Contract with any such person after such date, without
any penalty or restriction, including, but not limited
to, Draft Choice Compensation between Clubs or First
Refusal Rights of any kind.
Section 12. Notice of Signing:
Promptly following but no later than two business days
after receipt of notice of the signing of any Drafted or
Undrafted Rookie, the NFL shall notify the NFLPA of such
signing.
Section 13. Workouts of
Draft-Eligible Players: In order to encourage fair
competition among all Draft-eligible players who were
invited to the NFL Scouting Combine, and to discourage
any unfair advantages from individual workouts of such
players, Clubs are prohibited from attending or
conducting, directly or indirectly, any workouts of any
Draft-eligible player(s) who were invited to, and were
not excused from (because of medical or other reasons)
attending or participating fully in workouts at, the NFL
Scouting Combine.
Page 48
ARTICLE XVII
ENTERING PLAYER POOL
Section 1. Definition: For purposes of
this Article XVII of this Agreement, the following terms
shall have the meanings set forth below:
(a)
“Entering Player Pool” means the League-wide limit
on the total amount of Salary to which all of the NFL
Clubs may contract for in signing Drafted Rookies (and
certain amounts contracted to be paid to Undrafted
Rookies as described below) during each League Year of
this Agreement, as set forth below.
(b) Salary
shall be defined and calculated in the same manner as
set forth in Article XXIV (Guaranteed League-wide
Salary, Salary Cap & Minimum Team Salary). In the
event a Rookie who is subject to the Entering Player
Pool signs a Player Contract after the commencement of
the regular season, the Club must have Room under its
Rookie Allocation for the entire Paragraph 5 amount of
the contract.
Section 2. Covered League Years:
The Entering Player Pool will be in effect in the 1993
League Year and in all subsequent League Years, except
as set forth below. Beginning with the 1994 League Year,
the NFL may remove the Entering Player Pool at its
option in any Uncapped Year, by notice to the NFLPA at
least 60 days prior to the scheduled date of the Draft
that League Year. Further, in any Capped Year, the NFL
may remove the Pool, by notice to the NFLPA at least 60
days prior to the scheduled date of the Draft that
League Year, but to the extent that any Club spends more
than its Rookie Allocation in that League Year, the Club
will pay an equivalent number of dollars to its Veteran
players pursuant to reasonable allocation instructions
by the NFLPA.
Section 3. Calculation:
(a) For the 2002-03 League Years, the Entering Player
Pool shall consist on a League-wide basis of the amount
of the Entering Player Pool for the immediately
preceding League Year (excluding any formula allotments
attributable to any Compensatory Draft Selections). For
the 2004-07 League Years, the Entering Player Pool shall
consist on a League-wide basis of the amount of the
Entering Player Pool for the immediately preceding
League Year (excluding any formula allotments
attributable to any Compensatory Draft Selections),
increased by the same percentage as the increase in
Projected DGR for that League Year over the prior year's
DGR (as defined in Article
Page 49
XXIV (Guaranteed League-wide Salary, Salary Cap &
Minimum Team Salary)), up to a maximum of five percent
(5%) per season, but shall not in any event decrease in
actual amount from League Year to League Year.
Notwithstanding the foregoing, to the extent there are
Compensatory Draft Selections as a result of Article XVI
(College Draft), Section 2 and/or Article XX (Franchise
and Transition Players), Section 13, the Entering Player
Pool shall be increased in accordance with subsection
(c) below and as otherwise agreed upon by the NFL and
the NFLPA.
* Extension Agreement 1/8/02
(b) For each League Year of this Agreement, each Club
shall have a Rookie Allocation, which shall be its
proportional share of the Entering Player Pool,
calculated based on the number, round, and position of
the Club's selection choices in the Draft. The Rookie
Allocation formula shall be agreed upon by the NFL and
the NFLPA and shall remain in effect for the duration of
the Agreement, unless the NFL and the NFLPA otherwise
agree.
(c) If, pursuant to Article XVI (College Draft),
Section 2 and/or Article XX (Franchise and Transition
Players), Section 13, a Club has one or more
Compensatory Draft Selections, an amount shall be added
to that Club's Rookie Allocation, and to the Entering
Player Pool (notwithstanding subsection (b) above),
based upon the amount allotted to selection choices of
that round and position in calculating the Rookie
Allocation (the "Formula Allotment"). In the
event that a Club signs a Player Contract with a Drafted
Rookie who was drafted in a prior League Year, an
additional amount shall be added to that Club's Rookie
Allocation, and to the Entering Player Pool
(notwithstanding subsection (b) above), equal to the
lower of the Club's original Formula Allotment for such
draft choice or the amount of unused Room under the
Club's Rookie Allocation during the League Year in which
the player was originally drafted.
(d) Notwithstanding the above, nothing shall prevent
the Club from signing a player for an amount in excess
of the player's Formula Allotment, if the Club has Room
available under its Rookie Allocation.
(e) In the event that the NFL holds a supplemental
draft in addition to its annual Draft in advance of the
next League Year's Draft, adjustments shall be made to
the Entering Player Pool and Rookie Allocation in a
manner to be agreed upon by the NFL and the NFLPA.
(f) In any League Year in which one or more expansion
Teams enter the League, the amount of the Entering
Player Pool shall be increased to account for the draft
selections of any such expansion Teams. This additional
amount shall not be deducted from the calculation of the
Performance-Based Pool provided for in Article XXXVIII-B,
Section 1(b).
* Extension Agreement 1/8/02
*In the event the NFL holds a supplemental draft in
addition to its annual College Draft in advance of the
following League Year's College Draft, there shall be
added to each selecting Club's Rookie Allocation, and
(cumulatively, if more than one selecting Club) to the
Entering Player Pool for that League Year, an amount
equal to the Formula Allotment for the corresponding
choice(s) in
Page 50
that League Year's College Draft. In the subsequent
League Year, after Formula Allotments have been
established for each selection position in the College
Draft, the amount of the Formula Allotment(s) for the
selections used in the prior year's supplemental draft
shall be deducted from the Club's Rookie Allocation. See
Article XVII, Sec. 3 (e) of the CBA.
Example: If Team A selects a player in a supplemental
draft with the first choice in the third round, Team A's
Rookie Allocation for that League Year shall be
increased by an amount equal to the Formula Allotment
for the first choice in the third round of that year's
College Draft. An amount equal to the Formula Allotment
for the first choice in the third round of the prior
League Year's Draft shall be eliminated from the
subsequent League Year's Entering Player Pool, in that
Club's Rookie Allocation, but all other Rookie
Allocations remain the same.
*Side Letter 5/24/95
Section 4. Operation:
(a) No
Club may enter into Player Contracts with Drafted
Rookies that, standing alone or in the aggregate,
provide for Salaries in the first League Year of such
Player contracts that would exceed the Club’s Rookie
Allocation for that year.
(b) For
the purposes of this Article XVII, the Salary of any
Undrafted Rookie shall count toward the Club’s Rookie
Allocation only to the extent that it exceeds the
then-applicable Minimum Active/Inactive List Salary for
that player.
(c) In the
event that a Draft selection is assigned to another Club
prior to completion of the Draft, the amount of the
Formula Allotment for such selection shall be assigned
to the Club receiving the selection under the
assignment. A Club may not assign the exclusive
negotiating rights to a Drafted Player to another Club
if such New Club does not have Room under its Rookie
Allocation equal to at least the original Formula
Allotment for the player, unless the player consents to
such assignment.
(d) (i)If a Drafted Player is
placed on waivers, the player’s Formula Allotment
remains with the Club that requested waivers on him, and
the assignee Club must have Room or make Room under its
Rookie Allocation to make the Required Tender to the
player.
(ii) If a
Club requests waivers on a Drafted Rookie and that
player is released via waivers, the requesting Club can
sign that player to a Player Contract during that League
Year only if the Club has Room under its Rookie
Allocation equal to the full Salary contracted for in
that League Year.
(e) No
Player Contract signed by a Rookie may provide for an
annual increase in Salary of more than 25% of the
contract’s first League Year
Page 51
Salary, unless such Player
Contract provides for Salary which is equal to the
then-applicable Minimum Salary for each League Year of
the contract. For the purposes of the
calculation in this section only, any amount of a
signing bonus attributed to the player’s Salary shall
not be counted.
*Extension Agreement 2/25/98
* If a Rookie contracts with a Club for the minimum
workout payments set forth in Article XXXV, for his
second or subsequent season, such payments shall not be
included for the purposes of the 25% calculation under
Article XVII, Section 4(e). If a Rookie contracts with a
Club for a workout payment in excess of the minimum,
such excess amount shall be included for the purposes of
the 25% calculation under Article XVII, Section 4(e). In
all cases, a workout payment shall count toward Team
Salary and a Team’s Rookie Allocation.
*Side Letter 6/23/93: Sec. 1
* Any amount which a Club may pay to a player to buy
out a right the player has or may have to terminate one
or more contract years shall be treated as signing bonus
at the time the buy-out is exercised by the Club, and
pro-rated at that time over the remaining term of the
contract, including the current League Year, if the
right to terminate and/or the right to buy-out is based
upon one or more incentives that are not “likely to be
earned.” Such a buy-out amount shall not be included
in any calculation for purposes of the 25% Rule for
Rookies, set forth in Article XVII, Section 4(e) of the
CBA, and/or the 30% Rule, set forth in Article XXIV,
Section 8 of the CBA.
*Side Letter 10/21/96: Sec. 3(a)
* The parties acknowledge that Class Counsel together
with the NFLPA, and the NFL Management Council, disagree
as to the treatment of allocated signing bonus and
buy-out payments when a player’s right to terminate
one or more contract years and/or the Club’s right to
buy-out is based upon one or more incentives that are
“likely to be earned,” and not upon any incentives
that are not “likely to be earned.” These issues are
expressly left open. Except to enforce the terms of this
paragraph [and the one preceding], the terms of [both
these] paragraph[s]…may not be referred to or used by
any of the parties in any proceeding, or otherwise, and
the parties otherwise reserve all of their rights with
respect to the
Page 52
subject of this paragraph.
*Side Letter 10/21/96: Sec. 3(b)
* Any amount specified to be paid for the exercise of
an option by a Club to extend the term of a Player
Contract shall be treated as signing bonus, pro-rated
over the remaining term of the contract commencing in
the League Year in which it is exercised or the last
League Year in which the option may be exercised,
whichever comes first. Such an option amount shall,
immediately upon execution of the contract,
renegotiation or extension, be included in any
calculation for purposes of the 25% Rule for Rookies,
set forth in Article XVII, Section 4(e) of the CBA,
and/or the 30% Rule, set forth in Article XXIV, Section
8 of the CBA, pro-rated over the remaining term of the
contract commencing in the last League Year in which the
option may be exercised. Notwithstanding the foregoing:
(i) if a Club renounces its right to exercise the
option, the option amount shall not be included in Team
Salary as of the date of such renunciation; and (ii) if
the club does not renounce, but nonetheless does not
exercise the option, the full amount of the option
amount previously counted against Team Salary shall be
credited to the Club’s Salary Cap in the next League
Year.
*Side Letter 10/21/96: Sec. 4
(f)
The Player Contract of a Drafted Rookie or Undrafted
Rookie may not be renegotiated for a one (1) year period
following the date of the initial signing of such Player
Contract, or until August 1 of the following League
Year, whichever is later.
(g)
Nothing in this Agreement is intended to or shall be
construed to mean that any Rookie’s Salary is
predetermined by any Allocation or Formula Allotment.
(h) The
list of each Formula Allotment attributed to each draft
selection shall be agreed to by the NFL and the NFLPA,
and shall not be disclosed to Clubs, Players, Player
Agents or the public.
* For purposes of the Entering Player Pool and a
Team’s Rookie Allocation, amounts contracted to be
paid to Drafted Rookies, and amounts in excess of the
applicable Minimum Active/Inactive List Salary
contracted to be paid to Undrafted Rookies pursuant to
Article XVII, Section 4, shall be counted against the
Entering Player Pool and a Team’s Rookie Allocation,
whether or not the
Page 53
amounts are actually paid, in the manner
otherwise specified in the CBA.
*Side Letter 6/23/93: Sec. 7
* [I]n League Years for which no Salary Cap is in
effect, 85% of any amount contracted by a Team to be
paid from the Team’s Rookie Allocation to a Rookie,
but not actually paid by the Team to that player, either
as a rookie, or as a re-signed first year player or
practice squad player, which amount was not paid because
that player was released, will be distributed to all
rookies on such Team promptly after the end of the
season on a pro rata basis based upon the number of
downs played.
*Side Letter 6/23/93
* [I]f a Club has a Rookie Orientation Program apart
from its allowable mini camp(s) and prior to its
training camp, the following categories of per player
reimbursements or payments will not be counted against
the Entering Player Pool:
(1) One Round Trip Airline Ticket or its cash
equivalent from the player’s place of residence to the
Club city and back, not to exceed $750.
(2) Room and Board of up to $100 per day or its
equivalent, up to a maximum of 60 days.
(3) Ground transportation to and from the player’s
place of residence in the club’s city to the club’s
facility.
Any amounts in excess of the above reimbursements or
payments will count against the Entering Player Pool.
*Side Letter 8/4/93: Sec. 1
as amended, Side Letter 5/13/99
* The above reimbursements or payments for Rookie
Orientation Programs will not be considered Player Costs
during the term of this Agreement. The parties reserve
their respective rights and arguments with respect to
whether any amounts in excess of the above
reimbursements or payments do or do not qualify as
Player Costs under the Agreement.
*Side Letter 8/4/93: Sec. 2
Page 54
* Costs associated with the Rookie Orientation
Programs will be evaluated by the NFLPA, Class Counsel,
and the NFLMC each year to determine if adjustment, with
respect to the Entering Player Pool, is appropriate.
*Side Letter 8/4/93: Sec. 3
**See Pages 110-130 for Rookie “Likely To Be
Earned” Incentives. Article XXIV, Section 7(c).
Page 55
ARTICLE XVIII
VETERANS WITH LESS THAN THREE
ACCRUED SEASONS
Section 1. Accrued Seasons Calculation:
(a) For
the purposes of calculating Accrued Seasons under this
Agreement, a player shall receive one Accrued Season for
each season during which he was on, or should have been
on, full pay status for a total of six or more regular
season games, but which, irrespective of the player’s
pay status, shall not include games for which the player
was on: (i) the Exempt Commissioner Permission List,
(ii) the Reserve PUP List as a result of a nonfootball
injury, or (iii) a Club’s Practice or Development
Squad.
(b) For
the purposes of calculating Accrued Seasons under this
Agreement, for any League Year during the term of this
Agreement beginning with the 1993 League Year, a player
shall not receive an Accrued Season for any League Year
in which the player is under contract to a Club and in
which he failed to report to such Club at least thirty
days prior to the first regular season game of that
season, or in which the player thereafter failed to
perform his contract services for the Club for a
material period of time, unless he demonstrates to the
Impartial Arbitrator extreme personal hardship causing
such failure to report or perform, such as severe
illness or death in the family. The determination of the
Impartial Arbitrator shall be made within thirty days of
the application by the player, and shall be based upon
all information relating to such hardship submitted by
such date. The determination of the Impartial Arbitrator
shall be final and binding upon all parties.
Section 2. Negotiating Rights of
Players with Less Than Three Accrued Seasons: Any
Veteran with less than three Accrued Seasons whose
contract has expired may negotiate or sign a Player
Contract only with his Prior Club, if on or before March
1 his Prior Club tenders the player a one year Player
Contract with a Paragraph 5 Salary of at least the
Minimum Active/Inactive List Salary applicable to that
player. If the Prior Club has not by that date made the
Required Tender or later withdraws such tender, the
player shall be completely free to negotiate and sign a
Player Contract with any Club, and any Club shall be
completely free to negotiate and sign a Player Contract
with such player, without any penalty or restriction,
including, but not limited to, Draft Choice Compensation
between Clubs or First Refusal Rights of any kind, or
any signing period.
Section 3. Notice of Signing:
Promptly upon but no later than two business days after
the signing of any Veteran with less than three Accrued
Seasons to a Player Contract, the signing Club shall
notify the NFL, which shall notify the NFLPA of such
signing.
Page 56
** See Pages 38-39 - Article XIV, Section 5(a) for
Side Letter of 5/24/95, Section 13 and Side Letter of
3/3/97, Section 2 re: Notice of Signing.
** See Pages 40-41 - Article XIV, Section 8 for Side
Letter of 3/3/97, Section 1 re: Good Faith of Required
Tender.
** Prior Section 3 (Minimum Salaries) omitted under
2/25/98 Extension Agreement; See Pages 171-174-Article
XXXVIII, Sections 1-5 re: Minimum Salaries.
Page 57
ARTICLE XIX
VETERAN FREE AGENCY
Section 1. Unrestricted Free Agents:
(a) Subject to the provisions of Article XX
(Franchise and Transition Players), any player with five
or more Accrued Seasons, or with four or more Accrued
Seasons in any Capped Year, shall, at the expiration of
his Player Contract, become an Unrestricted Free Agent.
Such player shall be completely free to negotiate and
sign a Player Contract with any Club, and any Club shall
be completely free to negotiate and sign a Player
Contract with such player, without penalty or
restriction, including, but not limited to, Draft Choice
Compensation between Clubs or First Refusal Rights of
any kind, subject to the signing period set forth below.
(b) Signing Period.
(i) In the event that an Unrestricted Free Agent has not
signed a Player Contract with a Club by July 22 or the
first scheduled day of the first NFL training camp,
whichever is later, in the League Year following the
expiration of his last Player Contract, he may negotiate
or sign a Player Contract from July 22 until the Tuesday
following the tenth week of the regular season, at 4:00
p.m. New York time, only with his Prior Club, provided
that the Prior Club by June 1 has tendered to the player
a one year Player Contract of at least 110% of either
(a) his Prior Year Salary (if his expiring Player
Contract is not a Player Contract he entered into as a
Rookie), or (b) his Paragraph 5 Salary (if his expiring
Player Contract is a Player Contract he entered into as
a Rookie, without renegotiation), in each case with all
other terms of his contract identical to his prior
year's contract. For the purposes of this subsection,
"Prior Year Salary" means the total of the
Paragraph 5 Salary, roster and reporting bonuses,
pro-rata portion of signing bonus, and other payments to
players in compensation for the playing of professional
football for the last year of the player's most recently
negotiated Player Contract, except for performance
bonuses other than roster and reporting bonuses. Prior
Year Salary shall also include any unrepaid loans made,
guaranteed or collateralized by a Team or its Team
Affiliate to a player or Player Affiliate during or
after the 1993 League Year.
* Side Letter 1/22/01
(ii) If an Unrestricted Free Agent described in
subparagraph (b)(i) above has not signed a Player
Contract by the Tuesday following the tenth week of the
regular season, at 4:00 p.m. New York time, the player
shall be prohibited from playing football in the NFL for
the remainder of that League Year, absent a showing to
the Impartial Arbitrator of extreme Club or extreme
personal hardship. The determination of the Impartial
Arbitrator shall be made within five days of the
application and shall be based upon all information
relating to such hardship submitted by such date. The
determination of the Impartial Arbitrator shall be final
and binding upon all parties.
Page 58
(iii) If an Unrestricted Free Agent does not play in
the NFL for the remainder of a League Year pursuant to
subparagraph (b)(ii) above, commencing the first day of
the following League Year, the player shall be free to
negotiate and sign a Player Contract with any Club, and
any Club shall be completely free to negotiate and sign
a Player Contract with such player, without penalty or
restriction, including, but not limited to, Draft Choice
Compensation between Clubs or First Refusal Rights of
any kind, or any signing period.
(c) In the event that an Unrestricted Free Agent has
not signed a Player Contract with a Club by June 1 of
the League Year following the expiration of his last
Player Contract, and if his Prior Club has not by that
date tendered to the player a one year Player Contract
in accordance with the requirements of subparagraph (b)(i)
above, or has withdrawn the tender, the player shall
continue to be an Unrestricted Free Agent and shall be
completely free to negotiate and sign a Player Contract
with any Club, and any Club shall be completely free to
negotiate and sign a Player Contract with such player,
without any penalty or restriction, including, but not
limited to, Draft Choice Compensation between Clubs or
First Refusal Rights of any kind, or any signing period.
(d) An Unrestricted Free Agent shall not be subject
to any limitations on the period of time before which he
may qualify as an Unrestricted Free Agent again, or to
any limitations on the number of times he may be an
Unrestricted Free Agent.
(e) Promptly upon but no later than two business days
after the signing of any Unrestricted Free Agent to a
Player Contract, the signing Club shall notify the NFL,
which shall notify the NFLPA of such signing.
**See Pages 41-42, Article XIV, Section 5(a) for Side
Letter of 5/24/95, Section 13 and Side Letter of 3/3/97,
Section 2 re: Notice of Signing.
**See Page 44, Article XIV, Section 8 for Side Letter
of 3/3/97, Section 1 re: Good Faith of Required Tender.
Section 2. Restricted Free Agents:
(a) Any
Veteran player with three or more Accrued Seasons, but
less than five Accrued Seasons (or less than four
Accrued Seasons in any Capped Year), shall, at the
expiration of his last Player Contract during such
period, become a Restricted Free Agent. Any such player
shall be completely free to negotiate and sign a Player
Contract with any Club, and any Club shall be completely
free to negotiate and sign a Player Contract with any
such player, subject to the restrictions set forth in
this Article.
(b) In
order to receive the following specified Rights of First
Refusal and/or Draft Choice Compensation with respect to
a Restricted Free Agent, the Prior Club of a Restricted
Free Agent must tender the player a Qualifying
Page 59
Offer on or before the first date of the
Restricted Free Agent Signing Period, as follows:
(i)
For Restricted Free Agents with three Accrued Seasons:
(1) Right
of First Refusal: one year Player Contract with
Paragraph 5 Salary of at least $275,000;
(2) Right
of First Refusal and Draft Selection at Player’s
Original Draft Round: one year Player Contract with
a Paragraph 5 Salary of at least (a) $275,000, or (b)
110% of the player’s prior year’s Paragraph 5
Salary, whichever is greater; in addition, if option (b)
applies, all other terms of the player’s prior year
contract are carried forward unchanged (this subsection
is subject to the rules of subsection (c) below);
(3) Right
of First Refusal and One First Round Draft Selection:
one year Player Contract with a Paragraph 5 Salary of at
least (a) $600,000, or (b) 110% of the player’s prior
year’s Paragraph 5 Salary, whichever is greater; in
addition, if option (b) applies, all other terms of the
player’s prior year contract are carried forward
unchanged;
(4) Right
of First Refusal, One First Round Draft Selection, and
One Third Round Draft Selection: one year Player
Contract with a Paragraph 5 Salary of at least (a)
$800,000, or (b) 110% of the player’s prior year’s
Paragraph 5 Salary, whichever is greater; in addition,
if option (b) applies, all other terms of the player’s
prior year contract are carried forward unchanged;
(ii) For
Restricted Free Agents with four Accrued Seasons (in
Uncapped Years):
(1) Right
of First Refusal: one year Player Contract with
Paragraph 5 Salary of at least $325,000;
(2) Right
of First Refusal and Draft Selection at Player’s
Original Draft Round: one year Player Contract with
a Paragraph 5 Salary of at least (a) $325,000, or (b)
110% of the player’s prior year’s Paragraph 5
Salary, whichever is greater; in addition, if option (b)
applies, all other terms of the player’s prior year
contract are carried forward unchanged (this subsection
is subject to the rules of subsection (c) below);
(3) Right
of First Refusal and One First Round Draft Selection:
one year Player Contract with a Paragraph 5 Salary of at
least (a) $700,000, or (b) 110% of the player’s prior
year’s Paragraph 5 Salary, whichever is greater; in
addition, if option (b) applies, all other terms of the
player’s prior year contract are carried forward
unchanged; and
(4) Right
of First Refusal, One First Round Draft Selection, and
One Third Round Draft Selection: one year Player
Contract with Paragraph 5 Salary of at least (a)
$900,000, or (b) 110% of the player’s prior year’s
Paragraph 5 Salary, whichever is greater; in addition,
if option (b) applies, all other terms of the player’s
prior year contract are carried forward unchanged.
(c)
Notwithstanding subparagraphs 2(b)(i) and 2(b)(ii)
above, in the event that a Prior Club tenders any of its
Restricted Free Agents originally
Page 60
selected in a draft round lower than the first
round a Qualifying Offer that requires Draft Choice
Compensation of one first round selection (the
“Upgraded Tender”), the Prior Club shall only be
eligible to receive Draft Choice Compensation of one
second round selection for any of its Restricted Free
Agents originally selected in the first round of the
Draft, unless such Restricted Free Agents have each
received a Qualifying Offer of at least the amount of
the Upgraded Tender.
(d)
Notwithstanding subsections 2(b)(i) and 2(b)(ii) above,
in the event that the player was originally selected in
a draft round after the seventh round (or, for the 1993
League Year only, after the eighth round), a Qualifying
Offer in the amount required to obtain a Right of First
Refusal and Draft Choice Compensation at the Player’s
original Draft Round shall entitle a Club only to a
Right of First Refusal for such player.
(e) The
amounts of the Qualifying Offers specified in this
paragraph ($275,000, $325,000, $600,000, $700,000,
$800,000 and $900,000) shall increase each League Year
following the 1993 League Year by the same percentage as
the increase in Projected DGR over the prior League
Year’s DGR (as defined in Article XXIV), up to a
maximum of ten percent (10%) per League Year, but shall
not in any event decrease in actual amount from League
Year to League Year. Notwithstanding the foregoing, in
no event shall Qualifying Offer amounts increase if the
projected DGR for the League Year in question is not
greater than the highest DGR of any previous League
Year.
(f)
A Restricted Free Agent shall have the option of
accepting a one year NFL Player Contract for 110% of his
Prior Year Paragraph 5 Salary (with all other terms of
his prior year contract carried forward unchanged) in
lieu of a Player Contract for the applicable alternative
amount specified in this paragraph, if he so wishes,
regardless of which Player Contract is for a greater
amount.
(g) In the
event a Prior Club withdraws its Qualifying Offer, the
Restricted Free Agent shall immediately become an
Unrestricted Free Agent and shall be completely free to
negotiate and sign a Player Contract with any Club, and
any Club shall be completely free to negotiate and sign
a Player Contract with any such player, without being
subject to First Refusal, Draft Choice Compensation,
Signing Period, or any other limitation of any kind.
** See Pages 40-41 - Article XIV, Section 8 for Side
Letter of 3/3/97, Section 1 re: Good Faith of Required
Tender.
(h) Signing
Period. The dates of the period in which Restricted
Free Agents shall be free to negotiate and sign a Player
Contract with any Club (the "Signing Period")
shall be agreed upon by the NFL and the NFLPA by the
previous September 1, but in no event may such Signing
Period be less than a period of forty-five days, unless
the parties agree otherwise.
* Side Letter 1/22/01
Page 61
(i) (i) In the event that a
Restricted Free Agent has not signed a Player Contract
with a Club within the Signing Period in the League Year
following the expiration of his last Player Contract,
and if the Prior Club by June 1 tenders to the
Restricted Free Agent a one year Player Contract of at
least 110% of his Paragraph 5 Salary (with all other
terms of his prior year contract carried forward
unchanged) or extends the player’s Qualifying Offer,
whichever is greater (the “June 1 Tender”), the
Prior Club shall be the only Club with which the player
may negotiate or sign a Player Contract during the
period from June 1 until the Tuesday following the tenth
week of the regular season, at 4:00 p.m. New York time.
If the player’s Qualifying Offer is greater than 110%
of the player’s Paragraph 5 Salary (with all other
terms of his prior year contract carried forward
unchanged), the Club may withdraw the Qualifying Offer
on June 15 and retain its rights under the preceding
sentence, so long as the Club immediately tenders the
player a one year Player Contract of at least 110% of
his Paragraph 5 Salary (with all other terms of his
prior year contract carried forward unchanged) (the
“June 15 Tender”).
(ii) If a
Restricted Free Agent described in subsection (i)(i)
above has not signed a Player Contract by the Tuesday
following the tenth week of the regular season, at 4:00
p.m. New York time, the player shall not play football
in the NFL for the remainder of that League Year, absent
a showing to the Impartial Arbitrator of extreme Club or
extreme personal hardship. The determination of the
Impartial Arbitrator shall be made within five days of
the application, and shall consider all information
relating to such hardship submitted by such date. The
determination of the Impartial Arbitrator shall be final
and binding upon all parties.
(iii) If a
Restricted Free Agent does not play in the NFL in a
League Year, his Prior Team shall have the right to
tender such player any Qualifying Offer consistent with
Section 2(b) prior to the next League Year’s
Restricted Free Agent Signing Period. In the event such
a Qualifying Offer is tendered, the Prior Team shall
have the applicable rights regarding such player
according to such tender, and such player shall have the
same rights regarding negotiations with other Clubs as
he had the previous League Year.
(j)
In the event that a Restricted Free Agent has not signed
a Player Contract with a Club by June 1 in the League
Year following the expiration of his last Player
Contract, and if his Prior Club has not by that date
made the applicable June 1 Tender to such player, or
withdraws the tender, or in the event the Club has
withdrawn the applicable June 15 Tender, the player
shall be completely free to negotiate and sign a Player
Contract with any Club, and any Club may negotiate and
sign a Player Contract with such player, without any
penalty or restriction, including, but not limited to,
Page 62
Draft Choice Compensation between Clubs or
First Refusal Rights of any kind, or any signing period.
(k)
Promptly upon but no later than two business days after
the signing of any Restricted Free Agent to a Player
Contract, or the extending to any Restricted Free Agent
of a Qualifying Offer, the signing or extending Club
shall notify the NFL, which shall notify the NFLPA of
such signing or offer.
** See Pages 38-39 - Article XIV, Section 5(a) for
Side Letter of 5/24/95, Section 13 and Side Letter
3/3/97, Section 2 re: Notice of Signing.
(l)
Draft Choice Compensation under this Article shall
be due in that League Year’s Draft unless the Offer
Sheet is received by the Prior Club later than two days
before that League Year’s Draft, in which case Draft
Choice Compensation shall be due in the following League
Year’s Draft.
(m) Notwithstanding the
foregoing, in the event that the Prior Club of a
Restricted Free Agent has tendered the player a
Qualifying Offer pursuant to this Article XIX, Section
2(m) in an amount at least $500,000 greater than that
specified by Sections 2(b)(i)(4) or 2(b)(ii)(4) above,
as applicable depending upon whether the League Year is
a Capped Year or an Uncapped Year, or by Article LVI,
Section 2(b), if applicable, then the Club shall have a
Right of First Refusal and Draft Choice Compensation of
only One First Round Selection, but any provision in an
Offer Sheet to such player waiving or limiting the New
Club’s ability to designate the player as a Franchise
Player or Transition Player in the future shall not be a
Principal Term, and therefore need not be included in a
contract formed with the Prior Club as a result of
matching such an Offer Sheet (but shall be included in a
contract formed with the New Club as a result of the
Prior Club not matching such an Offer Sheet).
*Extension Agreement 2/25/98
Section 3. Offer Sheet and First Refusal
Procedures:
(a) Offer
Sheets. When a Restricted Free Agent receives an
offer to sign a Player Contract from any Club (the
“New Club”) other than the Prior Club, which offer
the player desires to accept, he shall give to the Prior
Club a completed certificate substantially in the form
of Appendix D, attached hereto (the “Offer Sheet”),
signed by the Restricted Free Agent and the New Club,
which shall contain the “Principal Terms” (as
defined below) of the New Club’s offer. The Prior
Club, within seven days from the date it receives the
Offer Sheet, may exercise or not exercise its Right of
First Refusal, which shall have the legal consequences
set forth below.
(b) First
Refusal Exercise Notice. If the Prior Club gives the
Restricted Free Agent a “First Refusal Exercise
Notice” substantially in the form of Appendix E,
attached hereto, within seven days from the date the
Prior Club receives an Offer Sheet, but not later than
four days before the Draft (or until 11:59 p.m. New York
time on April 24, 1993 in the 1993
Page 63
League Year), such Restricted Free Agent and
the Prior Club shall be deemed to have entered into a
binding agreement, which they shall promptly formalize
in a Player Contract, containing (i) all the Principal
Terms (subject to subsection (e) below); (ii) those
terms of the NFL Player Contract not modified by the
Principal Terms; and (iii) such additional terms, not
less favorable to the player than those contained in the
Offer Sheet, as may be agreed upon between the
Restricted Free Agent and the Prior Club.
(c) No First Refusal
Exercise Notice. If the Prior Club does not give the
Restricted Free Agent the First Refusal Exercise Notice
within the applicable period, the player and the New
Club shall be deemed to have entered into a binding
agreement, which they shall promptly formalize in a
Player Contract, containing (i) all the Principal Terms;
(ii) those terms of the NFL Player Contract not modified
by the Principal Terms; and (iii) such additional terms,
not less favorable to the Restricted Free Agent than
those contained in the Offer Sheet, as may be agreed
upon between the Restricted Free Agent and the New Club
(subject to Section 5 below), and the Restricted Free
Agent’s Prior Club shall receive from the New Club the
Draft Choice Compensation, if any, specified in Section
2 above of this Article. Any Club that does not have
available, in the upcoming Draft, the selection choice
or choices (its own or better choices in the applicable
rounds) needed to provide Draft Choice Compensation in
the event of a timely First Refusal Exercise Notice may
not sign an Offer Sheet in such circumstances. The
player and the New Club may not renegotiate such Player
Contract to reduce the Salary in such contract until the
date after the trading deadline in that League Year.
* Neither the Player nor the New Club may exercise
an option in such Player Contract that reduces Salary in
the first League Year of such contract until the date
after the trading deadline in that League Year.
*Side Letter 4/16/98
(d) One
Offer Sheet. There may be only one Offer Sheet
signed by a Restricted Free Agent outstanding at any one
time, provided that the Offer Sheet has also been signed
by a Club. An Offer Sheet, before or after it is given
to the Prior Club, may be revoked or withdrawn only by
the Clubs upon the written consent of the Restricted
Free Agent. In either of such events, the Restricted
Free Agent shall again be free to negotiate and sign a
Player Contract with any Club, and any Club shall again
be free to negotiate and sign a Player Contract with
such Restricted Free Agent, subject to the Prior
Club’s continued Right of First Refusal and/or Draft
Choice Compensation as described in this section.
(e) Principal
Terms. For the purposes of this section, the
Principal Terms of an Offer Sheet are only:
Page 64
(i)
Salary, which shall consist only of: (a) the fixed and
specified dollar amounts the New Club will pay,
guarantee or lend to the Restricted Free Agent and/or
his designees (currently and/or as deferred compensation
in specified installments on specified dates) in
consideration for his services as a football player
under the Player Contract (i.e., signing bonus,
Paragraph 5 Salary, and reporting and roster bonuses);
and (b) Salary that is variable and/or is subject to
calculation only upon the following bases: (i) based
upon performance of the Club extending the Offer Sheet
(only those incentives which are “likely to be
earned” by the player if he enters into a Player
Contract with the New Club, pursuant to subsection (c)
above, must be matched by the Prior Club for the purpose
of exercising a Right of First Refusal, and such
incentives may not exceed fifteen percent (15%) of the
Salary in the Offer Sheet); and (ii) generally
recognized league honors to be agreed upon by the
parties; and
(ii) Any
modifications of and additions to the terms contained in
the NFL Player Contract requested by the Restricted Free
Agent and acceptable to the New Club, that relate to
non‑compensation terms (including guarantees,
no‑cut, and no-trade provisions) of the Restricted
Free Agent’s employment as a football player (which
shall be evidenced either by a copy of the NFL Player
Contract, marked to show changes, or by a brief written
summary contained in or attached to the Offer Sheet).
(f) No
Property or Investments. A Club may not offer any
item of property or investments other than Salary as
part of the Principal Terms contained in an Offer Sheet.
(g) Incentives.
For those incentives which are based on Club
performance, only those incentives which are “likely
to be earned” by the player if he enters into a Player
Contract with the New Club, pursuant to subsection (c)
above, must be matched by the Old Club for the purpose
of exercising a Right of First Refusal.
(h) No
Consideration Between Clubs. There may be no
consideration of any kind given by one Club to another
Club in exchange for a Club’s decision to exercise or
not to exercise its Right of First Refusal, or in
exchange for a Club’s decision to submit or not to
submit an Offer Sheet to a Restricted Free Agent or to
make or not to make an offer to enter into a Player
Contract with a Restricted Free Agent. If a Club
exercises its Right of First Refusal and matches an
Offer Sheet, that Club may not trade that player to the
Club that submitted the Offer Sheet for at least one
calendar year, unless the player consents to such trade.
(i) NFL
Only. No Right of First Refusal rule, practice,
policy, regulation, or agreement, including any Right of
First Refusal applicable to any Restricted Free Agent or
Transition Player pursuant to Article XX (Franchise and
Transition Players) below, may apply to the signing of a
Player Contract with, or the playing with, any club in
any professional football league other than the NFL by
any Restricted Free Agent (except as agreed by the
player in the circumstances set forth in Section 5
below). This prohibition applies
Page 65
to any Right of First Refusal described in this
Agreement (except as described in Section 5 below).
(j) No
Assignment. No Right of First Refusal may be
assigned to any other Club (except as provided in
Article XVI (College Draft), Section 7 or as agreed by
the player in the circumstances set forth in Section 5
below). This prohibition applies to any Right of First
Refusal described in this Agreement (except as described
in Section 5 below), including any Right of First
Refusal with respect to Restricted Free Agents,
Transition Players, or Drafted Rookies described in
Article XVI (College Draft), Section 5.
(k) Copies.
Promptly upon but no later than two business days after
the giving of an Offer Sheet to the Prior Club, the
Restricted Free Agent shall cause a copy thereof to be
given to the NFL, which shall notify the NFLPA. Promptly
upon but no later than two business days after the
giving of a First Refusal Exercise Notice to the
Restricted Free Agent, the Prior Club shall cause a copy
thereof to be given to the NFL, which shall notify the
NFLPA. At any time after the giving of an Offer Sheet to
a Prior Club, the NFL may require the New Club to cause
a copy thereof to be given to the NFL and the NFLPA by
telecopy.
Section 4. Expedited Arbitration: An
expedited arbitration before the Impartial Arbitrator,
whose decision shall be final and binding upon all
parties, shall be the exclusive method for resolving the
disputes set forth in this Section. If a dispute arises
between the player and either the Prior Club or the New
Club, as the case may be, relating to their respective
obligations to formalize their binding agreements
created under sections 3(b) or (c) above, or as to
whether the binding agreement is between the Restricted
Free Agent and the New Club or the Restricted Free Agent
and the Prior Club, such dispute shall immediately be
submitted to the Impartial Arbitrator, who shall resolve
such dispute within ten days but in no event later than
two (2) days before the Draft. The Impartial Arbitrator
shall not have the power to terminate any such binding
agreement; he shall have the power only to direct the
parties to formalize such binding agreement into a
Player Contract in accordance with the Principal Terms
of the applicable Offer Sheet, as interpreted by the
Impartial Arbitrator.
Section 5. Individually Negotiated
Limitations on Player Movement:
(a) All
individually negotiated limitations on player movement
are prohibited, except as specifically provided as
follows:
(i)
If a Restricted Free Agent has been tendered a
Qualifying Offer of (a) Paragraph 5 Salary of at least
$275,000 for a player with three Accrued Seasons, or (b)
at least $325,000 for a player with four Accrued
Seasons, or (c) at least 110% of his prior year’s
Paragraph 5 Salary, whichever is greater (in each case
with all other terms of his prior year contract carried
forward), and the Qualifying Offer is fully
guaranteed for skill and injury, the Restricted Free
Agent and his Prior Club may negotiate and contract for
Page 66
an individual Right of First Refusal with
respect to the services of such player.
(ii) Any
Unrestricted Free Agent shall be permitted to negotiate
and contract for an individual Right of First Refusal
with any Club with respect to the services of such
player so long as the player is not a Franchise Player
or Transition Player at the time of such negotiation and
contract.
(b) Any
player (other than a Free Agent) with less than three
Accrued Seasons is prohibited from negotiating any
individual limitations on his movement in his Player
Contract or otherwise, and all Clubs are prohibited from
negotiating any such limitations with such players.
(c) Any
individual Right of First Refusal that is negotiated and
contracted for pursuant to subsection (a) or (b) above
shall be void and unenforceable unless it is specified
in a separate document signed by such player in the form
annexed hereto as Appendix F, acknowledging such
player’s waiver of the express right that Unrestricted
Free Agents have under this Agreement to be free of any
Right of First Refusal restriction on their freedom of
movement.
(d) Any
individually negotiated Rights of First Refusal in any
Player Contract existing at the time of the execution of
this Agreement shall remain in effect only if written to
supersede any litigation settlement agreement or any
collective bargaining agreement (“CBA”). Existing
individually negotiated Rights of First Refusal that
provide that a CBA will govern shall be deemed to be
superseded by this Agreement to the extent of any
conflict.
(e) The
amounts specified in this section ($275,000 and
$325,000) shall increase each League Year following the
1993 League Year by the same percentage as the increase
in Projected DGR over the prior League Year’s DGR as
defined in Article XXIV (Guaranteed League-wide Salary,
Salary Cap & Minimum Team Salary), up to a maximum
of ten percent (10%) per League Year, but shall not in
any event decrease in actual amount from League Year to
League Year. Notwithstanding the foregoing, in no event
shall such tender amounts increase if the Projected DGR
for the League Year in question is not greater than the
highest DGR of any previous League Year.
(f)
Rights of First Refusal negotiated pursuant to this
Section 5 may be traded or assigned as part of a
player’s contract.
Section 6. Notices, Etc.:
(a) Any
Offer Sheet, First Refusal Exercise Notice, or other
writing required or permitted to be given under this
Article XIX (Veteran Free Agency), shall be sent either
by personal delivery or by overnight mail, or by
telecopy (in each case a confirmation copy shall also be
sent by certified or registered mail), addressed as
follows:
Page 67
* The confirmation copy described in Article XIX,
Section 6 (a) of the CBA may sent by first class mail,
postage prepaid, instead of certified or registered
mail.
*Side Letter 5/24/95: Sec. 12
(i)
To any NFL Club: addressed to that Club at the principal
address of such Club as then listed on the records of
the NFL or at the Club’s principal office, to the
attention of the Club’s president or general manager;
(ii) To
the NFL, 280 Park Avenue, New York, New York
10017, to the attention of Executive Vice
President‑Labor Relations;
(iii) To a
Restricted Free Agent: to his address listed on the
Offer Sheet and, if the Restricted Free Agent designates
a representative on the Offer Sheet and lists such
representative’s address thereon, a copy shall be sent
to such representative at such address; and
(iv) To the
NFLPA, 2021 L Street, N.W., Suite 600, Washington, D.C.
20036.
(b) An
Offer Sheet shall be deemed given only when received by
the Prior Club. A First Refusal Exercise Notice, a
Qualifying Offer and any other writing required or
permitted under Article XIX (Veteran Free Agency) shall
be deemed given when sent by the Prior Club.
(c)
Subject to Article XXVIII (Anti-Collusion), Section 1,
below, the NFL shall have the right to prepare and
circulate to all Clubs two lists containing,
respectively, no more than the name, address, Social
Security number, telephone number, college, position,
Team, Right of First Refusal and/or any Draft Choice
Compensation of each and every player who shall or has
become (i) an Unrestricted Free Agent; or (ii) a
Restricted Free Agent, as of March 1, or as of the first
date of the Signing Period, respectively (“Free Agent
Lists”), and no other list relating to free agents.
Information shall not be selectively withheld for some
players but not others. If one or more Free Agent Lists
are so circulated, copies thereof shall be sent to the
NFLPA.
Page 68
ARTICLE XX
FRANCHISE AND TRANSITION PLAYERS
Section 1. Franchise Player Designations:
Franchise Player Designations: Except as set forth in
Sections 3, 9, and 17 below, each Club shall be
permitted to designate one of its players who would
otherwise be an Unrestricted Free Agent as a Franchise
Player each season during the term of this Agreement.
The player so designated may be one who would otherwise
be a Restricted Free Agent. Any Club that designates a
Franchise Player shall be the only Club with which such
Franchise Player may negotiate or sign a Player
Contract, during the period the player is so designated,
notwithstanding the number of his Accrued Seasons
(except as provided in Sections 2(b) and 2(c) below).
Any such designation must be made between February 1 and
February 15 of each League Year or during such other
period as may be agreed on by the Management Council and
the NFLPA, with the period ending at 4:00 p.m. New York
time.
* Extension Agreement 1/8/02
* The period for Clubs to designate Franchise
Players will begin on the twenty-second day preceding
the first day of the new League Year and will end at
4:00 p.m. New York time on the eighth day preceding the
first day of the new League Year.
* Side Letter 1/22/01
Section 2. Required Tender for Franchise
Players:
(a) - (b) [no longer
applicable]
(c) After
the 1993 League Year, any Club that designates a
Franchise
Page 69
Player shall on the date the designation is
made notify the player and the NFLPA which one of the
following two potential required tenders the Club has
selected:
(i)
A one year NFL Player Contract for the average of the
five largest Prior Year Salaries for players at the
position at which the Franchise Player played the most
games during the prior League Year, or 120% of his Prior
Year Salary, whichever is greater; if the Club extends
the tender pursuant to this Subsection (c)(i), the
player shall be permitted to negotiate a Player Contract
with any Club as if he were a player subject to Section
5 below, except that Draft Choice Compensation of two
first round draft selections shall be made with respect
to such player in the event he signs with the New Club,
and the Signing Period for such player shall be
determined under Section 17 below; or
(ii) A one
year NFL Player Contract for (1) the average of the five
largest Salaries in Player Contracts for that League
Year as of the end of the Restricted Free Agent Signing
Period that League Year, as set forth in Article XIX
(Veteran Free Agency), Section 2(h), for players at the
position at which he played the most games during the
prior League Year, or (2) the amount of the required
tender under subsection (c)(i) above, whichever is
greater.
(iii)
Beginning in the 1999 League Year, if a player subject
to a Franchise Player designation accepts the Required
Tender, the resulting Player Contract shall be fully
guaranteed if the player’s contract is terminated
because of lack of comparative skill; as a result of an
injury sustained in the performance of his services
under his Player Contract; and/or due to a Club’s
determination to create Room for Salary Cap purposes.
For purposes of this paragraph only, any contract
termination due to the failure of the player to
establish or maintain his excellent physical condition
will be subject to review of a neutral physician
appointed by the parties under Article X (Injury
Grievance), whose physical findings will be conclusive
in any arbitration proceeding relating to the physical
condition of the player at the time of the exam,
providing such exam takes place within twenty (20) days
of the contract termination.
*Extension Agreement 2/25/98
(d) Any of
the required tenders set forth in this Section 2 may be
withdrawn at any time, but if such tender is withdrawn,
the player immediately becomes an Unrestricted Free
Agent and thereafter is completely free to negotiate and
sign a Player Contract with any Club, and any Club shall
be completely free to negotiate and sign a Player
Contract with any such player, without any penalty or
restriction, including, but not limited to, Draft Choice
Compensation between Clubs or First Refusal Rights of
any kind, or any signing period.
** See Pages 40-41 - Article XIV, Section 8 for Side
Letter of 3/3/97, Section 1 re: Good Faith of Required
Tender.
Page 70
(e) For
the purpose of this Article, “Salary” means the
total of the Paragraph 5 Salary, roster and reporting
bonuses, prorata portion of signing bonus, and other
payments to players in compensation for the playing of
professional football for the applicable year of the
player’s most recently negotiated Player Contract,
except for performance bonuses other than roster and
reporting bonuses. Beginning with the 1994 League Year,
Salary shall also include any un-repaid loans made,
guaranteed or collateralized by a Team or its Team
Affiliate to a player or Player Affiliate during or
after the 1993 League Year.
(f)
The calculation of any five largest Salaries pursuant to
this Article shall not include: (i) any Player Contract
resulting from an acceptance of a tender extended
pursuant to subsection (b)(i)(1) or (c)(ii) above,
without any increase in Salary above the tender; or (ii)
any Player Contract amount resulting from a
renegotiation of an existing Player Contract between the
time of the designation and any applicable later date;
provided, however, that Player Contract amounts in
existence prior to such renegotiations shall be used if
otherwise appropriate.
(g) If
a Franchise Player receives a required tender pursuant
to Section 2(c)(i) above, any provision in an Offer
Sheet to such player waiving or limiting the New
Club’s ability to designate the player as a Franchise
Player or Transition Player in the future shall not be a
Principal Term, and therefore need not be included in a
contract formed with the Prior Club as a result of
matching such an Offer Sheet (but shall be included in a
contract formed with the New Club as a result of the
Prior Club not matching such an Offer Sheet). This
subsection (g) shall not apply to a player who was
designated as a Transition Player in lieu of being
designated as a Franchise Player, pursuant to Section 3(a)
below, or to any other Transition Player.
*Extension Agreement 2/25/98
.
* [T]he definition of a “Signing Bonus” for
purposes of the top 5 and top 10 minimum tenders is the
same under the Salary Cap, that the prorata portion of
such Signing Bonuses includes pro-rated amounts from
prior Player Contracts, and that the Salary Cap
acceleration rules for unamortized Signing Bonus amounts
do not apply to the calculation of the top 5 and top 10
minimum tenders.
*Side Letter 2/14/96
* For purposes of calculating the minimum tenders to
Franchise and Transition players under Article XX, if
the present value of any deferred Paragraph 5 amount (as
defined in Article XXIV, Section 7, Paragraph (a)(ii))
is at least $100,000 less than the initial Paragraph 5
amount (before being present valued), then the present
value amount shall be used.
*Side Letter 6/23/93: Sec. 5
Page 71
Section 3. Transition Player Designations:
(a) Each Club shall be permitted to designate one
Unrestricted Free Agent as a Transition Player between
February 1 and February 15 in the Final League Year,
with the period ending at 4:00 p.m. New York time. In
addition, in each League Year during the term of this
Agreement, each Club shall be permitted to designate one
Unrestricted Free Agent or Restricted Free Agent as a
Transition Player in lieu of designating a Franchise
Player, if such Franchise Player designation is
available to such Club, in addition to the Transition
Player designation permitted by the immediately
preceding sentence, during the same designation period
as the Franchise Player designation period.
* The period for Clubs to designate Transition
Players will begin on the twenty-second day preceding
the first day of the new League Year and will end at
4:00 p.m. New York time on the eighth day preceding the
first day of the new League Year.
* Side Letter 1/22/01
(b) Any Club that designates a Transition Player
shall receive the Rights of First Refusal specified in
this Article notwithstanding the number of his Accrued
Seasons. Any Transition Player shall be completely free
to negotiate and sign a Player Contract with any Club
during the period from the first day of the League Year
following the expiration of his last player contract to
July 22, and any Club shall be completely free to
negotiate and sign a Player Contract with such player,
without penalty or restriction, including, but not
limited to, Draft Choice Compensation between Clubs of
any kind, subject only to the Prior Club's Right of
First Refusal described in this Article.
* Extension Agreement 1/8/02
Section 4. Required Tender for
Transition Players:
(a) Any
Club that designates a Transition Player shall be deemed
on the first day of the League Year following the
expiration of the player’s last contract to have
automatically tendered the player a one year NFL Player
Contract for the average of the ten largest Prior Year
Salaries for players at the position at which he played
the most games during the prior League Year, or 120% of
his Prior Year Salary, whichever is greater. The tender
may be withdrawn at any time, but if such tender is
withdrawn, the player immediately becomes an
Unrestricted Free Agent and thereafter is completely
free to negotiate and sign a Player Contract with any
Club, and any Club shall be completely free to negotiate
and sign a Player Contract with such player, without any
penalty or restriction, including, but not limited to,
Draft Choice Compensation between Clubs or First Refusal
Rights of any kind, or any signing period.
** See Page 70 - Article XX,
Section 2(g) for Side Letter 6/23/93, Sec. 5 re:
Calculation of Minimum Tender to Franchise and
Transition Players.
Page 72
(b) For
the 1993 League Year, any Club that designated a
Transition Player who has not signed a Player Contract
by 4:00 p.m. New York time on June 14, and which has not
withdrawn its required tender, shall tender such player
a one year NFL Player Contract for (i) the average of
the ten largest Salaries in Player Contracts signed for
the 1993 League Year as of May 6, 1993 for players at
the position at which he played the most games during
the prior League Year, or (ii) the amount of the
required tender pursuant to subsection (a) above,
whichever is greater. This tender may be withdrawn at
any time, but if such tender is withdrawn, the player
immediately becomes an Unrestricted Free Agent and
thereafter is completely free to negotiate and sign a
Player Contract with any Club, and any Club shall be
completely free to negotiate and sign a Player Contract
with any such player, without any penalty or
restriction, including, but not limited to, Draft Choice
Compensation between Clubs or First Refusal Rights of
any kind, or any signing period.
(c) The
calculation of any ten largest Salaries pursuant to this
Article shall not include: (i) any Player Contract
amount resulting from an acceptance of a tender pursuant
to subsection (b)(i) above, without any increase in
Salary above the tender; or (ii) any Player Contract
amount resulting from a renegotiation of an existing
Player Contract between the time of the designation and
any applicable later date; provided, however, that
Player Contract amounts in existence prior to such
renegotiations shall be used if otherwise appropriate.
Section 5. Right of First Refusal
for Transition Players: Any player designated as a
Transition Player shall, at the expiration of his prior
year Player Contract, be permitted to negotiate a Player
Contract with any Club. When the Transition Player
negotiates such an offer with a New Club, which the
player desires to accept, he shall give to the Prior
Club a completed Offer Sheet, signed by the player and
the New Club, which shall contain the Principal Terms
(as defined in Article XIX (Veteran Free Agency)) of the
New Club’s offer. The Prior Club, within seven days
from the date it receives the Offer Sheet, may exercise
or not exercise its Right of First Refusal, which shall
have the legal consequences set forth in Sections
3(b)‑(h), 4 and 6 of Article XIX (Veteran Free
Agency) above, except that no Draft Choice Compensation
shall be made with respect to such player, and, for the
purposes of those provisions, the player and each Club
shall otherwise have the same rights and obligations as
for a Restricted Free Agent set forth in those
provisions, notwithstanding the number of his Accrued
Seasons.
Section 6. Lists: On each date
following the dates set forth in Sections 1 and 3 above,
the NFL shall provide to the NFLPA a list of each
Unrestricted Free Agent designated as a Franchise Player
or a Transition Player.
Page 73
Section 7. Salary Information:
(a) No
later than February 1 of each League Year during the
term of this Agreement, the NFL shall compile and
disclose to the NFLPA a list of each of the ten largest
Prior Year Salaries for players at the following
positions which shall be utilized for calculating the
average Prior Year Salaries of players at the positions
of Franchise Players and Transition Players:
Quarterback, Running Back, Wide Receiver, Tight End,
Offensive Line, Defensive End, Interior Defensive Line,
Linebacker, Cornerback, Safety, and Kicker/Punter. For
the 1993 League Year, such list shall be provided to the
NFLPA by February 15.
(b) No
later than ten days after the last day of the Restricted
Free Agent Signing Period in each League Year during the
term of this Agreement, the NFL shall compile and
disclose to the NFLPA a list of each of the ten and five
largest Salaries for players at the positions set forth
in subparagraph (a) above which shall be utilized for
calculating the applicable average Salaries of players
at such positions as of the last day of the Restricted
Free Agent Signing Period (including the amount of
Salary in any executed Offer Sheets). For the 1993
League Year, such supplemental list shall be provided to
the NFLPA no later than May 18, 1993 with respect to
such Salaries as of May 6, 1993.
(c) Any
dispute concerning the identity and Salaries of players
included within each player position category, or any
other matter regarding these figures, shall be submitted
to and resolved by the Impartial Arbitrator during the
period from February 1 to February 15, or within
twenty-five days after the last day of the Restricted
Free Agent Signing Period, respectively; for the 1993
League Year, any such dispute shall be submitted to and
resolved by the Impartial Arbitrator prior to March 1 or
May 31, respectively. The Impartial Arbitrator shall
make an independent determination in writing. In
arriving at his determination, the Impartial Arbitrator
shall consider any relevant information furnished to
him, and shall be provided access to all relevant Player
Contracts. The Impartial Arbitrator’s determination
shall be final and binding upon all parties.
Section 8. No Assignment: No
Club may assign or otherwise transfer to any other Club
the exclusive negotiating rights or any Right of First
Refusal it may have for any Franchise Player, nor any
Right of First Refusal it may have for any Transition
Player, nor any designation rights it may have.
Section 9. Duration of Designation:
(a) Each Club that signs a player it designated as a
Franchise Player to a Player Contract shall be deemed
each League Year thereafter to have utilized its
Franchise Player designation for each League Year for
which such player entered into a Player Contract with
such Club at the time when such player was subject to
such designation (unless the Club exercised a Right of
First Refusal with respect to a Franchise Player
tendered a Player Contract pursuant to Sections 2(b)(ii)
or
Page 74
2(c)(i) above, in which case the Club shall be deemed
to have utilized its Franchise Player designation only
in the League Year of the designation). For example,
without limitation on any other applicable example, a
Franchise Player who signs a Player Contract for two
League Years at a time when the player was subject to
the designation shall be deemed to be the Club's
Franchise Player for both such League Years. However, in
the event that the designated player retires or suffers
a career-ending injury (or an injury that prevents or
will prevent the player from playing in 32 consecutive
regular season games) which prevents him from playing a
contract year entered into while under such designation
(or is unavailable for the season due to non-injury
circumstances beyond the control of the Club), such Club
shall be permitted to designate another player in lieu
of such injured, retired or unavailable player for each
remaining League Year covered by the Club's prior
designation for such player, provided that the Club
designates a new Franchise Player during the designation
period prior to the first League Year to be covered by
the redesignation. Any dispute as to whether an injury
is career-ending or prevents or will prevent a player
from playing in 32 consecutive games shall be decided by
the Impartial Arbitrator. If a Club and a player agree
to extend (either separately or as part of a
renegotiation) a Player Contract prior to July 15 in the
League Year for which the Club designated the player as
a Franchise Player, such Club shall also be deemed to
have utilized its Franchise Player designation pursuant
to this Section 9 for the full period of that extension.
If a Club and a player agree to extend (either
separately or as part of a renegotiation) a Player
Contract on or after July 15 in the League Year for
which the Club designated the player as a Franchise
Player, such Club shall not be deemed to have utilized
its Franchise Player designation pursuant to this
Section 9 for the period of the extension, unless there
has been a violation of the provisions of Article XXV
(Enforcement of The Salary Cap And Entering Player
Pool), Sections 1 or 2, with respect to such contract
extension.
(b) Clubs will have a window, beginning the day after
the last day of the Franchise Player designation period
and ending 4:00 p.m., New York time, on the fourteenth
day following the start of the League Year, during
which, if the Club signs its Franchise Player to a
multi-year contract or extension, the Club may
nonetheless retain its Franchise Player designation
rights the following year. (By way of clarification, if
the League Year begins on March 1, the window will end
at 4:00 p.m., New York time, on March 15.) If a
multi-year contract or extension is not signed during
the window period, the current rules continue to apply
without prejudice or inference being drawn from the
addition of this Section 9(b) in the January 8, 2002
amendments to this Agreement.
* Extension Agreement 1/8/02
* If a Club withdraws a Franchise Player designation
after the last date of the signing period for
Unrestricted Free Agents (i.e., July 15 or the first
scheduled day of the first NFL training camp, whichever
is later), and the Club subsequently signs a Player
Contract for that season with the player who was subject
to the designation, and does so before the later of
(i)15 days after the withdrawal of the designation, or
(ii) the day after the next scheduled NFL preseason game
for the Club (not including any game played outside the
U.S.), the Club shall be deemed to have signed the
player while he was subject to the designation, and,
pursuant to Article VIII, Paragraph 9 of the Settlement
Agreement, and Article XX, Section 9 of the
Page 75
CBA, the Club shall have utilized its Franchise
Player designation for each League Year for which such
Player Contract was signed.
If a Club withdraws a Franchise Player designation
after the date of its final cutdown to the Active List
limit for that season, and the Club subsequently signs a
Player Contract for that season with the player who was
subject to the designation, and does so before the day
after the Club's second regular season game after the
withdrawal of the designation, the Club shall be deemed
to have signed the player while he was subject to the
designation, and, pursuant to Article VIII, Paragraph 9
of the Settlement Agreement, and Article XX, Section 9
of the CBA, the Club shall have utilized its Franchise
Player designation for each League Year for which such
Player Contract was signed.
*Side Letter 1/18/94: Sec. 1
* If a club executes a multiyear agreement with a
player designated as a Franchise Player and trades the
player the same day to another NFL club, the assignor
club will be deemed to have used its franchise
designation for only the League Year in which the
contract was executed.
*Side Letter 4/21/95
* If a Club and a player whom the Club had designated
as a Franchise Player in a prior League Year agree to
extend a Player Contract that was agreed to when the
player was subject to the Franchise Player designation,
such Club shall not thereby be deemed to have utilized
its Franchise Player designation pursuant to Article XX,
Section 9 of the CBA for the period of the extension.
* Side Letter 5/24/95: Sec. 10
Section 10. Franchise Player
Designation Period: A Club may designate a Franchise
Player only during the periods and in the numbers
specified in Section 1 above; otherwise, the Club’s
right to such designation expires. However, a Club may
designate a player to whom the Club has rights as a
Franchise Player with respect to any first future League
Year during the term of this Agreement for which such
player is anticipated to be an Unrestricted Free Agent.
For any such players, the Club shall be deemed on the
first day of the first future League Year in which the
designation takes effect to have automatically tendered
the player a one year NFL Player Contract for the
applicable average of the five largest Prior Year
Salaries for players at the
Page 76
position category at which he played the most
games during the prior League Year, or 120% of the
player’s Prior-Year Salary, whichever is greater. If a
player designated to become the Franchise Player in the
future retires, suffers a career-ending injury (or an
injury that prevents the player from participating in 32
consecutive regular season games), is unavailable for
the season due to non-injury circumstances beyond the
control of the Club, or is assigned to another Club
(other than through the waiver system) before such
designation is exercised, the Club shall be entitled to
designate a new Franchise Player for that League Year.
Any dispute as to whether an injury is career-ending or
prevents or will prevent a player from playing in 32
consecutive games shall be decided by the Impartial
Arbitrator.
Section 11. Transition Player
Designation Period: A Club may designate a
Transition Player (or players) only during the periods
and in the numbers specified in Section 3 above;
otherwise, the Club’s right to such designation
expires. However, a Club may designate a player to whom
the Club has rights as a Transition Player with respect
to any first future League Year during the term of this
Agreement for which such player becomes an Unrestricted
Free Agent; any such future designation exhausts the
Club’s designation right (and does not move to any
other Club) even if the player moves to another Club, as
a Restricted Free Agent or via waivers, before he would
have become an Unrestricted Free Agent with the
designated Club. For any such players, the Club shall be
deemed on the first day of the first future League Year
in which the designation takes effect to have
automatically tendered the player a one year NFL Player
Contract for the applicable average of the ten largest
Prior Year Salaries for players at the position that he
played the most games during the prior League Year, or
120% of the player’s Prior Year Salary, whichever is
greater. If a player designated to become a Transition
Player in the future retires, suffers a career-ending
injury (or an injury that prevents the player from
participating in 32 consecutive regular season games),
is unavailable for the season due to non-injury
circumstances beyond the control of the Club, or is
assigned to another Club (other than through the waiver
system) before such designation is exercised, the Prior
Club shall be entitled to designate a new Transition
Player for that League Year.
* If a Prior Club becomes entitled to designate a new
Transition Player pursuant to Article XX, Section 11
(penultimate sentence) of the Collective Bargaining
Agreement, the prior Club may designate the new
Transition Player for that League Year between February
1 and February 15 of any League Year prior to the League
Year in which the player initially designated would have
become a Transition Player.
*Side Letter 5/24/95: Sec. 15
Page 77
Any dispute as to whether an injury is
career-ending or prevents or will prevent a player from
playing in 32 consecutive games shall be decided by the
Impartial Arbitrator.
Section 12. Prospective Designation:
Notwithstanding Sections 10 and 11 above, if in the 1993
League Year (or in the 1994 League Year, if no Salary
Cap is in effect during the 1994 League Year), a Club
designates a Franchise Player or Transition Player to
apply to the first League Year a designated player is
expected to be eligible to be an Unrestricted Free Agent
under Article XIX (Veteran Free Agency), but that player
turns out not to be an Unrestricted Free Agent because
of the failure of the Salary Cap to be in effect that
League Year, such designation shall apply to such player
the next League Year in which the player becomes an
Unrestricted Free Agent.
Section 13. Right to Decline:
Each plaintiff who was a named plaintiff prior to
February 26, 1993, in the following actions shall be
permitted to decline any designation as a Franchise
Player or Transition Player during the term of this
Agreement, for any reason whatsoever, by notice to his
prior Club within ten days of such designation for
current year designations and within ten days of
February 15 (or such other date as may be agreed upon by
the NFL and the NFLPA) in the future League Year such
designation becomes effective for future year
designations: White v. NFL, Civ. No.
4‑92‑906 (D. Minn.); Lewis v. NFL,
Civ. No. 3‑93‑87 (D. Minn.); McNeil v.
NFL, Civ. No. 4‑90‑476 (D. Minn.); Allen
v. Chargers Football Co., Civ. No. 91‑4322
(C.D. Cal.); Joyner v. NFL, Civ. No.
92‑2876 (E.D. Pa.); and Hebert v. NFL, Civ.
No. S023546 (Sup. Ct. Cal.). In the event that a Club
designates any such player as a Franchise Player or
Transition Player, and such player declines such
designation and signs with another Club, such
designating Club shall be awarded Compensatory Draft
Selection(s) in lieu of such designation. In the case of
a Franchise Player, only one year’s designation shall
be exhausted in the latter situation. Such additional
Compensatory Draft Selections shall not exceed a total
of twenty during the term of this Agreement.
Section 14. Other Terms: For the
purposes of this Article, the Required Tenders of a one
year Player Contract for at least 120% of the Franchise
Player’s or Transition Player’s Prior Year Salaries
shall in addition to the 120% Salary also include all
other terms of the player’s Prior Year contract,
including any guarantees and any provisions providing
for incentives or performance bonuses. In addition, a
player who is designated as a Franchise Player or a
Transition Player shall have the option of accepting a
one year NFL Player Contract for 120% of the player’s
Prior Year Salary in lieu of a Player Contract for the
average of the five (or ten, as applicable) largest
applicable Salaries for players at his position, if he
so wishes, regardless of which Player Contract is for a
greater amount.
Page 78
Section 15. Compensatory Draft
Selection: The procedures for awarding Compensatory
Draft Selections shall be determined as agreed by the
NFL and the NFLPA.
Section 16. Signing Period for
Transition Players:
(a) In the event that a player who
is designated and tendered as a Transition Player has
not signed a Player Contract with a Club by July 22 in
the League Year following the expiration of his last
Player Contract, the Prior Club shall be the only Club
with which the player may negotiate or sign a Player
Contract during the period from such date until the
Tuesday following the tenth week of the regular season,
at 4:00 p.m. New York time.
* Side Letter 1/22/01.
(b) If a
Transition Player described in subsection (a) above has
not signed a Player Contract by the Tuesday following
the tenth week of the regular season, at 4:00 p.m. New
York time, the player shall be prohibited from playing
football in the NFL for the remainder of that League
Year, absent a showing to the Impartial Arbitrator of
extreme Club or extreme personal hardship. The
determination of the Impartial Arbitrator shall be made
within five days of the application, and shall be based
upon all information relating to such hardship submitted
by such date. The determination of the Impartial
Arbitrator shall be final and binding upon all parties.
(c) If a
Transition Player does not play in the NFL in a League
Year, he shall continue to be treated as a Transition
Player the following League Year and the Team shall be
deemed on the first day of the following League Year to
have automatically tendered the player a one year NFL
Player Contract for the average of the ten largest
Salaries for the prior League Year for players at the
player’s specified position, or 120% of his Prior Year
Salary, whichever is greater. The tender may be
withdrawn at any time, but if such tender is withdrawn,
the player immediately becomes an Unrestricted Free
Agent and is completely free to negotiate and sign a
Player Contract with any Club, and any Club is
completely free to negotiate and sign a Player Contract
with such player, without penalty or restriction,
including, but not limited to, Draft Choice Compensation
between Clubs or First Refusal Rights of any kind, or
any signing period.
Section 17. Signing Period for Franchise
Players:
(a) If a
Franchise Player has not signed a Player Contract by the
Tuesday following the tenth week of the regular season,
at 4:00 p.m. New York time, the player shall be
prohibited from playing football in the NFL for the
remainder of that League Year, absent a showing to the
Impartial Arbitrator of extreme Club or extreme personal
hardship. The determination of the Impartial Arbitrator
shall be made within five days of the application, and
shall consider all information relating to such hardship
submitted by such date. The determination of the
Impartial Arbitrator shall be final and binding upon all
parties.
Page 79
(b) If a
Franchise Player does not play in the NFL in a League
Year, his Prior Team shall have the right to designate
such player as a Franchise Player or a Transition Player
the following League Year, if such designation is
otherwise available to the Team, except that the
applicable tender must be made and any 120% tender shall
be measured from the Player’s prior year salary. If such
a player is re-designated as a Franchise Player for
the League Year following the League Year in
which he does not play, the player may be designated
only under Section 2(c)(i) above, except that Draft
Choice Compensation of only one first round draft
selection and one third round draft selection shall be
made with respect to such player in the event he signs
with the New Club. If a Franchise Player who has
sufficient Accrued Seasons to become an Unrestricted
Free Agent is not designated as a Franchise Player
or Transition Player for any League Year immediately
following a League Year in which he does not play,
then on the first day of that League Year, the player
becomes an Unrestricted Free Agent and is completely
free to negotiate and sign a Player Contract with any
Club, and any Club is completely free to negotiate and
sign a Player Contract with such player, without penalty
or restriction, including, but not limited to, Draft
Choice Compensation between Clubs or First Refusal
Rights of any kind, or any signing period.
*Extension Agreement 2/25/98
Page 80
ARTICLE XXI
FINAL EIGHT PLAN
Section 1. Application: The
provisions of this Article shall apply only in any
League Year during the term of this Agreement in which
no Salary Cap is in effect.
Section 2. Top Four Teams: Each
of the four Clubs that participated in the NFC and AFC
Championship games the Prior League Year shall not be
permitted to negotiate and sign any Unrestricted Free
Agent to a Player Contract, except: (a) any Unrestricted
Free Agent who acquired that status as a result of the
NFL waiver system; (b) any Unrestricted Free Agent who
was under contract to such Club on the last date of the
last League Year of the player’s most recent Player
Contract; and (c) any Unrestricted Free Agent signed
pursuant to Section 4 below.
Section 3. Next Four Teams: Each of the
four playoff Clubs that lost in the immediately
preceding playoff games to the four Clubs that
participated in the NFC and AFC Championship games the
Prior League Year shall not be permitted to negotiate
and sign any Unrestricted Free Agent to a Player
contract, except: (a) any Unrestricted Free Agent who
acquired that status as a result of the NFL waiver
system; (b) any Unrestricted Free Agent who was under
contract to such Club on the last date of the last
League Year of the player’s most recent Player
contract; (c) any Unrestricted Free Agent signed
pursuant to Section 4 below; and (d) any Unrestricted
Free Agent as follows:
(i)
One such player for a Player Contract that has a first
year Salary of $1,500,000 or more; and
(ii) Any
number of such players for a Player Contract that has a
first year Salary of no more than $1,000,000 and an
annual increase in any future contract years of no more
than 30% of the first contract year Salary, not
including any amount attributed to any signing bonus. In
addition, each such Club and each such player entering
into a Player Contract pursuant to this subsection may
not renegotiate to increase the amount of Salary to be
paid during the term of the Player Contract for a period
of one year after the signing date of such contract.
Section 4. Replacement of Free
Agents Signed by Other Club: Each of the eight Clubs
subject to the provisions of this Article shall be
permitted to negotiate and sign one Unrestricted Free
Agent to a Player Contract (“New Player”) for each
Unrestricted Free Agent who was under contract to such
Club on the last date of the prior League Year, who has
signed with another Club (“Previous Player”), so
long as the Player Contract for the New Player shall
have a first year Salary of no more than the first year
Salary of the Player Contract signed by the Previous
Player with the New
Page 81
Club, and an annual increase in any future
contract years of no more than 30% of the first contract
year Salary, excluding any amounts attributable to any
signing bonus. In addition, each such Club and each such
player entering into a Player Contract pursuant to this
subsection may not renegotiate to increase the amount of
Salary to be paid during the term of the Player Contract
for a period of one year after the signing date of such
contract.
Section 5. Increases: The
amounts specified in this Article ($1,500,000 and
$1,000,000) shall increase each League Year following
the 1993 League Year by the same percentage as the
increase in Projected DGR over the prior League Year’s
DGR (as defined in Article XXIV (Guaranteed League-wide
Salary, Salary Cap & Minimum Team Salary)).
Notwithstanding the foregoing, in no event shall the
amounts specified in this Article increase if the
Projected DGR for the League Year in question is not
greater than the highest DGR of any previous League
Year.
Section 6. Salary Definition:
For purposes of this Article, “Salary” means
Paragraph 5 Salary, roster and reporting bonuses,
prorata portions of signing bonuses, likely to be earned
incentive bonuses, and other payments in compensation
for the playing of professional football, as defined in
Article XXIV (Guaranteed League-wide Salary, Salary Cap
& Minimum Team Salary) below.
Section 7. Trade Limitation: No
Club subject to the provisions of this Article may, for
one League Year, trade for a player it otherwise would
not be permitted to sign as an Unrestricted Free Agent
as a result of the provisions in this Article.
* [R]egarding whether Clubs subject to the Final
Eight Plan are permitted to negotiate with and sign
Transition Players, and Franchise Players who otherwise
are permitted to negotiate and sign with other
Clubs…Final Eight Plan Clubs are permitted under the
CBA to negotiate with and sign such players, since these
players are not Unrestricted Free Agents.
*Side Letter 8/4/93
* For purposes of the Final Eight Plan provisions,
each of the eight teams subject to the provisions of
Article IX of the Stipulation and Settlement Agreement
and Article XXI of the Collective Bargaining Agreement
may, after the later of July 15 or the first scheduled
day of the first NFL training camp, in any League Year
in which the Final Eight Plan is in effect, sign any
Unrestricted Free
Page 82
Agent whose team did not make the June 1 Tender
or whose team subsequently withdrew that Tender.
*Side Letter 9/21/93: Sec. 20
Page 83
ARTICLE XXII
WAIVER SYSTEM
Section 1. Release:
(a)
Whenever a player who has finished the season in which
his fourth year of credited service has been earned
under the Bert Bell/Pete Rozelle Plan is placed on
waivers between February 1 and the trading deadline, his
contract will be considered terminated and the player
will be completely free at any time thereafter to
negotiate and sign a Player Contract with any Club, and
any Club shall be completely free to negotiate and sign
a Player Contract with such player, without penalty or
restriction, including, but not limited to, Draft Choice
Compensation between Clubs or First Refusal Rights of
any kind, or any signing period. If the waivers occur
after that time, the player’s Player Contract will be
subject to the waiver system and may be awarded to a
claiming Club. However, if such player is claimed and
awarded, he shall have the option to declare himself an
Unrestricted Free Agent at the end of the League Year in
question if he has a no-trade clause in his Player
Contract. If such player does not have a no-trade clause
and the Player Contract being awarded through waivers
covers more than one additional season, the player shall
have the right to declare himself an Unrestricted Free
Agent as set forth above at the end of the League Year
following the League Year in which he is waived and
awarded.
(b)
Whenever a player who has finished less than the season
in which his fourth year of credited service has been
earned under the Bert Bell/Pete Rozelle Plan is placed
on waivers, the player’s Player Contract will be
subject to the waiver system and may be awarded to a
claiming Club.
Section 2. Contact: Coaches or
any other persons connected with another NFL Club are
prohibited from contacting any player placed on waivers
until such time as the player is released by the waiving
Club.
Section 3. Ineligibility: Any
NFL player who is declared ineligible to compete in a
pre-season, regular season or post-season game because
of a breach by any NFL Club by whom he is employed of
waiver procedures and regulations, or any other
provision of the NFL Constitution and Bylaws, will be
paid the salary or other compensation which he would
have received if he had not been declared ineligible,
which, in any event, will be a minimum of one week’s
salary and, when applicable, expense payments.
Section 4. Notice of Termination:
The Notice of Termination form attached hereto as
Appendix G will be used by all Clubs. If possible, the
Notice of Termination will be personally delivered to
the player prior to his departure from the team. If the
Notice of Termination has not been personally delivered
to the player prior to his departure from the team, the
Notice of Termination will be sent to him by certified
mail at his last address on file with the Club.
Page 84
Section 5. NFLPA’s Right to
Personnel Information: The NFL shall inform the
NFLPA of player personnel transactions communicated in
the Personnel Notice between the NFL and its member
Clubs concerning the termination or trading of players
including awards on waivers, termination through
waivers, confirmation of trades or any change in the
status of players (e.g., placed on Reserve Injured,
etc.). The NFL will make best efforts to communicate the
information referred to in this Article to the NFLPA on
the same day, but in no event later than noon on the
next day. A player who is terminated shall, upon request
at or around the time of termination, be informed by the
terminating Club of any claims made upon him by NFL
Clubs during that League Year. The same information will
be provided to the NFLPA if requested.
Section 6. Rosters: The NFLMC
shall supply the NFLPA with an opening day and final
roster for each Club. Rosters shall consist of the
following categories of players: Active; Inactive;
Reserve Injured; Reserve Physically Unable to Perform;
Exempt Commissioner Permission; Non Football
Illness/Injury; Practice Squad.
Page 85
ARTICLE XXIII
TERMINATION PAY
Section 1. Eligibility: Any player who
has completed the season in which his fourth year or
more of credited service under the Bert Bell/Pete
Rozelle Retirement Plan has been earned shall be
eligible for termination pay under this Article if:
(1) He is
released after his Club’s first regular season game;
and
(2) He has
made the Inactive or Active List of his Club on or after
the date of his Club’s first regular season game.
Subject to Section 3 below, the amount of
termination pay payable to such player shall be the
unpaid balance of his Paragraph 5 Salary for that
League Year. Termination pay under this Article
shall be claimed and payable no sooner than one day
after the end of the regular season schedule, and no
later than February 1. A player will not be entitled to
termination pay more than once during his playing career
in the NFL.
*Extension Agreement 2/25/98
Section 2. Regular Season Signings:
The termination pay under this Article of any player who
is terminated from a contract which was signed after the
beginning of the regular season in which he is
terminated shall be limited to an amount equal to the
unpaid balance of the initial 25% of such player’s
Paragraph 5 Salary. If such player is released after the
eighth regular season game, his termination pay shall be
one week’s salary, up to a maximum of $20,000.
Section 3. Ineligibility For Termination Pay:
An otherwise qualified player will not be entitled to
termination pay under this Article if the Club can
demonstrate that, after receipt of a written warning
from his Club in the form attached hereto as Appendix N,
the player failed to exhibit the level of good faith
effort which can be reasonably expected from NFL players
on that Club.
*Extension Agreement 2/25/98
* A player shall not be eligible for Termination Pay
if, without missing a game check at the Paragraph 5 rate
stated in his terminated contract, he signs a Player
Contract with the same Club that terminated his
contract, which new contract provides for Paragraph 5
salary at a rate equal to or greater than that of his
terminated contract. If the player’s new contract is
subsequently terminated, however, he shall be eligible
for Termination Pay for such subsequent termination.
This paragraph may not be used or referred to in any
pending case that was filed prior to the date of this
letter, except to enforce the terms of this sentence.
*Side Letter 3/3/97: Sec. 3
Page 86
ARTICLE XXIV
GUARANTEED LEAGUE-WIDE SALARY,
SALARY CAP, & MINIMUM TEAM
SALARY
Section 1. Definitions: For purposes of
this Article, and anywhere else specifically stated in
this Agreement, the following terms shall have the
meanings set forth below:
(a) Defined
Gross Revenues.
(i)
“Defined Gross Revenues” (also referred to as “DGR”)
means the aggregate revenues received or to be received
on an accrual basis, for or with respect to a League
Year during the term of this Agreement, by the NFL and
all NFL Teams (and their designees), from all sources,
whether known or unknown, derived from, relating to or
arising out of the performance of players in NFL
football games, with only the specific exceptions set
forth below. The NFL and each NFL Team shall in good
faith act and use their best efforts, consistent with
sound business judgment, so as to maximize Defined Gross
Revenues for each playing season during the term of this
Agreement. Defined Gross Revenues shall include, without
limitation:
(1)
Regular season, pre-season, and post-season gate
receipts (net of admission taxes, and surcharges paid to
stadium or municipal authorities which are deducted for
purposes of calculating gate receipts subject to revenue
sharing), including ticket revenue from “luxury
boxes,” suites and premium seating subject to gate
receipt sharing among NFL Teams; and
(2)
Proceeds including Copyright Royalty Tribunal and
extended market payments from the sale, license or other
conveyance of the right to broadcast or exhibit NFL
pre-season, regular season and play-off games on radio
and television including, without limitation, network,
local, cable, pay television, satellite encryption,
international broadcasts, delayed broadcasts (which
shall not include any broadcast of an NFL pre-season,
regular season or play-off game occurring more than 72
hours after the live exhibition of the game, unless the
broadcast is the first broadcast in the market), and all
other means of distribution, net of any reasonable and
customary NFL expenses related to the project; and
(3)
Proceeds from the sale or conveyance of any right to
receive any of the revenues described above.
(ii) The
following is a nonexclusive list of examples of revenues
received by the NFL and/or NFL Teams which are not
derived from, and do not relate to or arise out of the
performance of players in NFL football games (and are
therefore not “DGR”): proceeds from the assignment,
sale or trade of Player Contracts, proceeds from the
sale of any existing NFL franchise (or any interest
therein) or the grant of NFL expansion franchises, dues
or capital contributions received by the NFL, fines,
“revenue sharing” among NFL Teams, interest income,
insurance recoveries, and sales of interests in real
estate and other property.
Page 87
Notwithstanding any other
provision of this Agreement, revenues derived from NFL
Attractions (a joint venture that formerly included the
NFL and St. Joe Corporation) from the operation of
indoor NFL entertainment facilities, with entry rights
separate from the stadium, which facilities do not
permit the users thereof to view the live performance of
players in NFL football games except by media available
outside the stadium, shall not be included in DGR or
Excluded DGR (except to the extent that revenues derived
from NFL Attractions are addressed in the second
sentence of Section 1(a)(iii) below). This exclusion
shall apply so long as the business of NFL Attractions
is conducted with a non-NFL third party that holds a
non-de minimus interest and participates in the business
of NFL Attractions. Each of the parties hereto reserves
any positions it may have regarding whether any similar
revenues derived from other sources are DGR, non-DGR or
Excluded DGR.
Notwithstanding any other
provision of this Agreement, the NFLPA and Class Counsel
may agree, on a case-by-case basis, with no limitation
on their exercise of discretion, not to include in DGR
network television revenue to the extent that such
revenue is used to fund the construction or renovation
of a stadium that results in an increase of DGR and/or
Excluded DGR.
*Extension Agreement 2/25/98
(iii)
Notwithstanding subsection 1(a)(i) above, the following
shall be considered “Excluded DGR” and not included
in Defined Gross Revenues: revenues derived from
concessions, parking, local advertising and promotion,
signage, magazine advertising, local sponsorship
agreements, stadium clubs, luxury box income other than
that included in subsection 1(a)(i)(1) above, sales of
programs and novelties, and any categories of revenue
(other than those listed in subsections 1(a)(i)(l)‑(3)
above) currently included under NFL Films and NFL
Properties, Inc. and its subsidiaries.To the extent
that revenues of the NFL, NFL Properties, NFL Films, NFL
Enterprises, any other NFL affiliate (other than NFL
Attractions), any Club, or any Club affiliate result
from any licenses to or other provision of intellectual
property or other products or services to NFL
Attractions, such revenues will be included in DGR or
Excluded DGR, as appropriate, at no less than fair
market value (e.g., to the extent that film, video, NFL
logos or other intellectual properties or other products
or services of such NFL and/or Club entities are
utilized by NFL Attractions without the payment of any
licensing fees, the fair market value amount shall be
imputed). Any dispute over the fair market value shall
be resolved in the first instance by the Accountants
after consulting and meeting with representatives of
both parties. In the event such dispute involves a
disputed amount of $10 million or more, each party shall
have a right to appeal such resolution to the Special
Master, who shall review the dispute de novo, and whose
decision shall be subject to appeal pursuant to Article
XXVI, Section 2.
*Extension Agreement 2/25/98
Page 88
(iv) In
calculating Defined Gross Revenues, the amount of
Excluded DGR divided by the sum of Excluded DGR plus DGR
from all sources except network television revenues
shall not exceed the percentage resulting from dividing
1992 Excluded DGR by the sum of 1992 Excluded DGR plus
1992 DGR from all sources except network television
revenues. In the event Excluded DGR for any season
exceeds the percentage resulting from the above
calculation, any excess Excluded DGR shall be included
in DGR. For purposes of the calculations described in
this subsection (iv), Excluded DGR shall not include any
revenues referred to in subsection l(a)(ii).
(v)
Notwithstanding the provisions of subsection 1(a)(i)(2)
above, for the purposes of calculating Defined Gross
Revenues for the 1993 League Year only, revenues derived
from national network television shall be deemed to be
$35 million per NFL Team. Any actual amounts received in
excess of that amount shall be included pro rata in DGR
for the 1994 and 1995 seasons.
(vi) It is
acknowledged by the parties hereto that for purposes of
determining Defined Gross Revenues:
(1) NFL
Teams may, during the term of this Agreement, be owned
and controlled by persons or entities that will receive
revenues for a grant of rights encompassing both (a)
rights from the NFL Team so owned or controlled (the
revenue from which is includable in Defined Gross
Revenues) and (b) other rights owned or controlled by
such persons or entities (the revenue from such other
rights not being includable in Defined Gross Revenues),
and that, in such circumstances, allocations would
therefore have to be made among the rights and revenues
described in this Section 1(a); and
(2) NFL
Teams may, during the term of this Agreement, receive
revenue for the grant of rights to third parties which
are owned or controlled by the persons or entities
owning or controlling such NFL Teams (hereinafter
“Related Entities”).
(vii) The
reasonableness and includability in DGR of such
allocations and transactions between Related Entities
shall be determined by the nationally recognized
accounting firm jointly retained by the parties, in
accordance with the procedures described in Section 10
below.
(viii) For the
purposes of any amounts to be calculated or used
pursuant to this Agreement with respect to DGR, Excluded
DGR, Benefits, Player Costs, Projected DGR, Projected
Benefits, Required Tenders, Qualifying Offers, Minimum
Salaries, Minimum Active/Inactive List Salaries, Team
Salary, or Salary, such amounts shall be rounded to the
nearest $1,000.
(ix)(1) In
calculating Defined Gross Revenues, each League Year up
to $5 million per year shall be deducted from DGR to the
extent that such sums are received that League Year by
the NFLPA pursuant to Paragraphs 5, 12, 29 and 30 of the
Stipulation and Settlement Agreement in NFLPA v. NFL
Properties, Inc., No. 90‑CV‑4244 (MJL) (S.D.N.Y.).
(ix)(2) In calculating Excluded DGR each League
Year, amounts shall be deducted from Excluded DGR to the
extent that such sums are received that League Year by
any affiliate of the NFLPA, as provided in Paragraph 11
of the Sponsorship Agreement dated January 24, 2001.
* Extension Agreement 1/8/02
Page 89
(x)(1)Without limiting the
foregoing, except as specified in subsections (x)(2)
through (x)(7) below, DGR shall include all revenues
from Personal Seat Licenses (“PSLs”) received by, or
received by a third party and used, directly or
indirectly, for the benefit of, the NFL or any Team or
Team Affiliate, without any deduction for taxes or other
expenses. Such revenues shall be allocated in equal
portions, commencing in the League Year in which they
are received, over the remaining life of the PSL,
subject to a maximum allocation period of fifteen years;
provided, however, that interest from the League Year
the revenues are received until the League Years the
revenues are allocated into DGR shall be imputed and
included in DGR, in equal portions over such periods,
calculated on an annual compounded basis using the
Treasury Bill rate published in The Wall Street Journal
of February 1 during the League Year in which the
revenues are received. Each equal portion of PSL
revenues allocated into DGR, plus an equal portion of
the imputed interest specified above, shall be referred
to as the “Maximum Annual Allocation Amount.”
(x)(2)To the extent that PSL
revenues are used to pay for the construction of a new
stadium or for stadium renovation(s) that increase DGR
(regardless of whether the stadium is owned by a public
authority or a private entity (including, but not
limited to, the NFL, any Team or any Team Affiliate)), and
if such PSL revenues have received a waiver of any
League requirement of sharing of “gross receipts,” then
such PSL revenues will not be included in a particular
League Year in DGR or in Excluded DGR. Notwithstanding
the foregoing, the maximum exclusion of PSL revenues
each League Year from DGR shall be equal to any increase
in DGR that directly results from such stadium
construction or renovation (including through any
spillover from Excluded DGR) as calculated in
subsections (x)(3) through (x)(7) below.
(x)(3)Until the first full League
Year the new stadium or the renovated facilities are put
into service, the amount of PSL revenues excluded each
League Year shall be equal to the Maximum Annual
Allocation Amount. If the actual increase in DGR
directly resulting from such stadium construction or
renovations during the first full League Year in which
such stadium or renovations are put into service (the
“First Year PSL Increases”) is less than any Maximum
Annual Allocation Amount for that League Year or any
prior League Year (the “PSL Difference”), then the
aggregate PSL Difference for every such League Year
(assuming for purposes of calculating such PSL
Difference, that the First Year PSL Increase had been
received in each such League Year) shall be credited to
DGR in the immediately following League Year.
(x)(4)Commencing with the first
full League Year the new stadium or the renovated
facilities are put into service, the jointly retained
Accountants (set forth in Article XXIV, Section
10(a)(ii) below) shall determine the increase in DGR
that directly results each League Year from a stadium
construction or renovation funded, in whole or in part,
by PSL revenues. In the
Page 90
case of a new stadium, such calculation shall
be made by comparing the DGR directly generated by the
old stadium during the last full League Year in which
the old stadium was in service with the DGR directly
generated by the new stadium during the League Year in
question. In the case of stadium renovations, such
calculation shall be made by comparing the DGR directly
generated by those specific stadium facilities which are
renovated, with the DGR directly generated by those
facilities prior to their renovation (where new
facilities, such as completely new luxury suites or
premium seats, are constructed, the DGR directly
generated by the facilities prior to their renovation
would equal either zero, or the amount of DGR directly
generated by any facilities that were replaced by the
renovation). If the NFL or the NFLPA agree that a
renovation is substantial enough to increase revenues
throughout the stadium (e.g., significant renovations
throughout the stadium which enable the Club to attract
more fans and/or increase ticket prices) then the
Accountants shall consider any increase in DGR
throughout the stadium (e.g., increased concession,
parking or novelty revenues spilling into DGR) as being
directly generated by the renovation.
(x)(5)If the calculations set
forth in (x)(4) above result in an exclusion of PSL
revenues from DGR that is less than the Maximum Annual
Allocation Amount, the Accountants shall report the
amount not excluded from DGR as a “Carryover PSL
Credit.” Such Carryover PSL Credits, if any, shall be
deducted from a Team’s DGR in the first future League
Year in which the amount of DGR directly generated by
the new stadium or the renovated facilities exceeds the
Maximum Annual Allocation Amount (the “PSL Excess”),
but only up to the amount of the PSL Excess. Each dollar
of Carryover PSL Credit may be deducted from a Team’s
DGR only once, and only to the extent of any PSL Excess
existing at the time of such deduction.
(x)(6)Any applicable deduction
from DGR or Excluded DGR for any expenses (i.e.,
interest, rent, taxes or depreciation) that are
attributable to premium seats or luxury suites included
in any new stadium or stadium renovation project funded,
in whole or in part, by PSL revenues excluded from DGR
and Excluded DGR pursuant to subsection (x)(2) above
shall be reduced, in any League Year, by an amount equal
to the result obtained by multiplying (a) the gross
deduction for such expenses that would otherwise be
available under this Agreement in respect of such League
Year, by (b) a fraction, the numerator of which is (1)
the total PSL revenues described in the first sentence
of subsection (x)(2), and the denominator of which is
(2) the total costs for construction of the new stadium
or renovations.
(x)(7)For purposes of this
paragraph, the term “PSL” shall include any and all
instruments of any nature, whether of temporary or
permanent duration, that give the purchaser the right to
acquire or retain tickets to NFL games and shall
include, without limitation, seat options and bonds
giving purchasers the right to acquire NFL tickets. PSL
revenues shall also include revenues from any other
device (e.g., periodic payments such as surcharges,
Page 91
loge maintenance fees, etc.) that the NFL and
the NFLPA agree constitutes a PSL.
(xi)(1)
Notwithstanding Section 1(a)(i)-(iv), above, premium
seat revenues that otherwise would be included in
Excluded DGR shall not be so included in a particular
League Year to the extent that such revenues are used to
pay for, or to pay financing costs for, the construction
of a new stadium or for stadium renovation(s) that
increase DGR (regardless of whether the stadium is owned
by a public authority or a private entity (including,
but not limited to, the NFL, any Team or any Team
Affiliate)), and if such revenues have received a
waiver of any League requirement of sharing of “gross
receipts.” The maximum exclusion of premium seat
revenue from Excluded DGR each League Year shall be
equal to any increase in DGR that directly results from
such stadium construction or renovation (including
through any spillover from Excluded DGR) as calculated
in subsections (xi)(2) through (xi)(6) below.
(xi)(2)
Until the first full League Year the new stadium or the
renovated facilities are put into service, the amount of
premium seat revenues excluded each League Year shall be
equal to the amount that receives a waiver of any League
requirement of sharing of gross receipts (the
“Non-Shared Amount”). If the actual increase in DGR
during the first full League Year in which the new
stadium or the renovated facilities are put into service
(the “First Year Premium Seat Increase”) is less
than any Non-Shared Amount for that League Year or any
prior League Year (the “Premium Seat Difference”),
then the aggregate Premium Seat Difference for every
such League Year (assuming for purposes of calculating
such Premium Seat Difference that the First Year Premium
Seat Increase had been received in each such League
Year) shall be credited to Excluded DGR in the
immediately following League Year.
(xi)(3)
Commencing with the first full League Year the new
stadium or the renovated facilities are put into
service, the jointly retained Accountants (set forth in
Article XXIV, Section 10(a)(ii) below) shall determine
the increase in DGR that directly results each League
Year from the stadium construction or renovation funded,
in whole or in part, with premium seat revenues. In the
case of a new stadium, such calculation shall be made by
comparing the DGR directly generated by the old stadium
during the last full League Year in which the old
stadium was in service with the DGR directly generated
by the new stadium during the League Year in question.
In the case of stadium renovations, such calculation
shall be made by comparing the DGR directly generated by
those specific stadium facilities which are renovated,
with the DGR directly generated by those facilities
prior to their renovation (where new facilities, such as
completely new luxury suites or premium seats, are
constructed, the DGR directly generated by the
facilities prior to their renovation would equal either
zero, or the amount of DGR directly generated by any
facilities that were replaced by the renovation). If the
NFL and the NFLPA agree that a renovation is substantial
enough to
Page 92
increase revenues throughout the stadium (e.g.,
significant renovations throughout the stadium which
enable the Club to attract more fans and/or increase
ticket prices) then the Accountants shall consider any
increase in DGR throughout the stadium (e.g., increased
concession, parking or novelty revenues spilling into
DGR) as being directly generated by the renovation.
(xi)(4)If the calculations set
forth in (xi)(3) above result in an exclusion of premium
seat revenues from Excluded DGR that is less than the
Non-Shared Amount, the Accountants shall report the
amount not excluded from Excluded DGR as a “Carryover
Premium Seat Credit.” Such Carryover Premium Seat
Credits, if any, shall be deducted from a Team’s
Excluded DGR in the first future League Year in which
the amount of DGR directly generated by the new stadium
or the renovated facilities exceeds the Non-Shared
Amount (the “Premium Seat Excess”), but only up to
the amount of the Premium Seat Excess. Each Carryover
Premium Seat Credit may be deducted from a Team’s DGR
only once, and only to the extent of any Premium Seat
Excess existing at the time of such deduction.
(xi)(5)Any applicable deduction
from DGR or Excluded DGR for any expenses (i.e.,
interest, rent, taxes or depreciation) that are
attributable to premium seats or luxury suites included
in any new stadium or stadium renovation project funded,
in whole or in part, by premium seat revenues excluded
from Excluded DGR pursuant to subsection (xi)(1) above
shall be reduced, in any League Year, by an amount equal
to the result obtained by multiplying (a) the gross
deduction for such expenses that would otherwise be
available under this Agreement in respect of such League
Year, by (b) a fraction, the numerator of which is (1)
the total premium seat Non-Shared Amount dedicated to
funding the project during the allocation period, and
(2) the denominator of which is the total costs for
construction of the new stadium or renovations.
(xi)(6)For purposes of this
paragraph, the term “Premium Seat Revenue” shall
include revenue from any periodic charge in excess of
the ticket price that is required to be paid to acquire
or retain any ticket to NFL games (other than PSL
revenues and charges for purchase or rental of luxury
suites), including charges in respect of any amenities
required to be purchased in connection with any ticket.
(xii) An amount equal to
the lesser of (a) $8 million for each League Year or (b)
the amount contributed to or deposited with NFL
Charities that League Year by or on behalf of NFL
Properties or NFL Films, or any of their subsidiaries,
shall be deducted from the calculation of Excluded DGR
each such League Year.
* Extension Agreement 1/8/02
(xiii) Up to the following additional amounts, if
committed to youth football programs and contributed by
the NFL, its Teams, or their affiliates, in a qualified
not-for-profit fund administered by a board jointly
appointed by the NFL and the NFLPA, shall also be
deducted from the calculation of DGR:
Page 93
2002 League Year: $20.0 million
2003 League Year: $22.5 million
2004 League Year: $25.0 million
2005 League Year: $25.0 million
2006 League Year: $25.0 million
* Extension Agreement 1/8/02
(xiv) The parties may agree to allocate DGR received
or to be received on an accrual basis in a particular
League Year over one or more other League Years.
(xv) If a terrorist or military action occurs after
January 8, 2002, with the result that one or more weeks
of any NFL season are cancelled or that DGR for any
League Year decreases to a catastrophic extent, the
parties shall engage in good faith negotiations to
adjust the provisions of this Agreement with respect to
the projection of DGR and the Salary Cap for the
following League Year, so that DGR for the following
League Year is projected in a fair manner consistent
with the changed revenue projection caused by such
action.
* Extension Agreement 1/8/02
(b) Benefits.
"Benefits" and "Player Benefit
Costs" mean the aggregate for a League Year of all
sums paid (or to be paid on a proper accrual basis for a
League Year) by the NFL and all NFL Teams for, to, or on
behalf of present or former NFL players, but only for:
(i) Pension funding, including the Bert Bell/Pete
Rozelle NFL Player Retirement Plan (as described in
Article XLVII) and the Second Career Savings Plan (as
described in Article XLVIII); provided that all costs
associated with the benefit increase, to which the
parties agreed in 2002, under Article XLVII, Section 8,
shall be allocated for Player Benefit Costs purposes in
equal amounts to the 2002-2006 League Years;
(ii) Group insurance programs, including, life, medical,
and dental coverage (as described in Article XLIX or as
required by law), and the Supplemental Disability Plan
(as described in Article LI);
(iii) Injury protection (as described in Article XII);
(iv) Workers' compensation, payroll, unemployment
compensation, and social security taxes;
(v) Preseason per diem amounts (as described in Sections
3 and 4 of Article XXXVII) and regular season meal
allowances (as described in Article XXXIX);
(vi) Moving and travel expenses (as described in
Sections 2, 3, and 4 of Article XLI, and Section 8 of
Article XXXVII);
(vii) Postseason pay (as described in Article XLII and
Article XLIII); and salary paid to practice squad
players pursuant to a practice squad contract during the
postseason, unless the practice squad player contract is
executed or renegotiated after December 1 for more than
the minimum practice squad salary, in which case all
salary paid to such a practice squad player during the
postseason will be counted as Salary.
(viii) Player medical costs (i.e., fees to doctors,
hospitals, and other health care providers, and the
drugs and other medical cost of supplies, for the
treatment of player injuries), but not including
salaries of trainers or other Team personnel, or the
cost of Team medical or training equipment (in addition,
the amount of player medical costs included in Benefits
may not increase by more than ten percent (10%) each
League Year);
Page 94
(ix) Severance pay (as described in Article L);
(x) The Player Annuity Program (as described in Article
XLVIII-A);
(xi) The
(as described in Article XXXVIII-A);
(xii) The Performance Based Pool (as described in
Article XXXVIII-B); and
(xiii) The Tuition Assistance Plan (as described in
Article XLVIII-B).
* Extension Agreement 1/8/02
Benefits will not include salary reduction
contributions elected by a player to the Second Career
Savings Plan described in Article XLVIII. Benefits also
will not include any tax imposed on the NFL or NFL Clubs
pursuant to section 4972 of the Internal Revenue Code
for the Bert Bell/Pete Rozelle NFL Player Retirement
Plan. Benefits for a League Year will be determined by
adding together all payments made and amounts properly
accrued by or on behalf of the NFL and all NFL Clubs for
the above purposes during that League Year, except that
Benefits for pension funding and the Second Career
Savings Plan will be deemed to be made in a League Year
for purposes of this Article if made in the Plan Year
beginning in the same calendar year as the beginning of
such League Year.
(c) Salary.
(i)
“Salary” means the compensation in money, property,
investments, loans or anything else of value to which an
NFL player (including Rookie and Veteran players and
players whose contracts have been terminated) or his
Player Affiliate is entitled in accordance with a Player
Contract, but not including Benefits. Salary with
respect to any period shall include all Salary actually
payable with respect to such period under the terms of a
Player Contract and all Salary attributable to such
period under the terms of this Agreement.
(ii) A
player’s Salary shall also include any and all
consideration received by the player or his Player
Affiliate, even if such consideration is ostensibly paid
to the player for services other than football playing
services, if the NFL can demonstrate before the
Impartial Arbitrator that the consideration paid to the
player or Player Affiliate for such non-football
services does not represent a reasonable approximation
of the fair market value of such services as performed
by such player. The Impartial Arbitrator’s
determination may take into account, among other things:
(1) any actual dollar amounts the player or Player
Affiliate received for similar non-football playing
services from an independent third party; and (2) the
percentage of total compensation for non-football
services received from third parties versus the Team or
Team Affiliate.
(iii) For
purposes of this Article, Salary shall be computed
pursuant to the additional rules below.
Section 2. Trigger for Guaranteed
League-wide Salary, Salary Cap, and Minimum Team Salary:
There shall be no Guaranteed League-wide Salary, Salary
Cap, or Minimum Team Salary for NFL Teams during the
1993 League Year. If in the 1993 League Year or any
subsequent League Year the
Page 95
total Player Costs for all NFL Teams equals or
exceeds 67% of actual Defined Gross Revenues, there
shall be a Guaranteed League-wide Salary, Salary Cap,
and Minimum Team Salary in the amounts set forth below
for the next League Year and all subsequent League
Years, unless the Salary Cap is removed pursuant to
Section 4(b)(ii)(4) below. Notwithstanding the
immediately preceding sentence, there will be no
Guaranteed League-wide Salary, Salary Cap or Minimum
Team Salary in the Final League Year.
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
Page 96
(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
Page 97
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).
Page 98
(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:
Page 99
(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
Page 100
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
Page 101
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
Page 102
(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
Page 103
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
Page 104
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
Page 105
* 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
Page 106
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
Page 107
(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
Page 108
(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
|
| |
Page 109
(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
Page 110
ROOKIE “LIKELY TO BE EARNED”
INCENTIVES
ROSTER BONUSES
(regular season)
All Drafted
100%
Undrafted
30%
ROSTER BONUSES
(pre-season)
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%
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%
Page 111
ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
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%
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%
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%
Page 112
ROOKIE “LIKELY TO BE EARNED” INCENTIVES
(REVISED SCHEDULE B)
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%
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%
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%
Page 113 |