IMCA template

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NFL PLAYER CONTRACT PRIMER
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NFL PLAYER CONTRACT PRIMER

• MARK LEVIN
• Director, Salary Cap Agent Administration
• NFL Players Association

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WHAT IS THE SALARY CAP?

• The Salary Cap is the total amount of money each
  Club may spend on salaries and benefits in any
  given year.
  
• Two components to the Cap
• Benefits
• Salaries

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WHAT IS THE SALARY CAP?

• The benefit portion is an equal and fixed amount
  per Club.
  
• Benefits Include
• Injury Protection
• Severance Pay
• Workers Comp
• Post-Season Money

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COMPONENTS OF A PLAYER CONTRACT

• Base Salary (Paragraph 5)
• Signing Bonus
• Option Bonus
• Roster Bonus
• Reporting Bonus
• Workout Bonus
• Incentives
• Guarantees

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COMPONENTS OF A PLAYER CONTRACT

• Base Salary (Paragraph 5)
• Earned 1/17th per week of season
• Not guaranteed unless specifically provided
• Vested Vets guaranteed if on roster 1st game
• Lower salary when on IR (split)

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COMPONENTS OF A PLAYER CONTRACT

• Signing Bonus/Option Bonus
• Paid to player upon signing or for Club exercise
  of future option year(s)
  
• Deferrals negotiable
• Guaranteed (CBA forfeitures on signing bonuses
  only)
  
• Prorated equally over max number of years allowed
  (6 in 2008)
  

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COMPONENTS OF A PLAYER CONTRACT

• Roster Bonuses
• On roster certain point in time
  (off-season/regular season) or for certain number
  of games (53 vs. 45)
  
• Not guaranteed (unless specifically provided)
• Paid when earned

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COMPONENTS OF A PLAYER CONTRACT

• Reporting Bonuses
• Training Camp (late July)
• Not guaranteed (unless specifically provided)
• Paid when earned

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COMPONENTS OF A PLAYER CONTRACT

• Workout Bonuses
• CBA Minimum (120.00 per day in 08)
• Off-Season (max 14 weeks)
• Paid as earned weekly or lump sum at end of
  program
  
• Not guaranteed (unless specifically provided

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COMPONENTS OF A PLAYER CONTRACT

• Incentives
• Team/Individual Performance
• Not Common in Rookie Contracts out side of rounds
  1 2
  
• Typically paid by start of next League Year
  (March 1)

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2008-10 MINIMUM SALARIES

Reduced by 5k at each level if CBA terminated
early
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WHEN DO PLAYERS SIGN?

• Unrestricted Free Agents
• Usually First Three Weeks of March
• Restricted Free Agents
• Offer Sheets Until Week Before Draft
• Only 5-10 Per Year

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WHEN DO PLAYERS SIGN?

• Draft
• More than 75 Between July 4th and Training Camp
• Undrafted Rookies
• More than 90 Within First Week After Draft Most
  the Night Draft Ends

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FUTURE PLANNING
2008 Draft Max 5 Increase in Rookie Pool Actua
l increases will vary by round
Contract Length Limits Picks 1-16 6 years maxim
um Picks 16-32 5 years maximum All others 4
years maximum
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WHAT TO WATCH FOR?

• Agent/Recruiter Misconduct
• Previous Financial Advisor Misconduct