NFL Contracts Explained: Option Bonus

An option bonus is similar to a roster bonus. However, rather than receiving money for remaining on a team on a certain date, the team has the “option” to pay the bonus or terminate the player’s contract. When an option bonus is exercised, it is subject to probation like a signing bonus. If the option... Continue Reading →

NFL Contracts Explained: Workout Bonus

Some contracts also have workout bonuses, which a player earns by participating in an agreed upon percentage of the team’s offseason workout program. Most big contracts contain these bonuses as an incentive to get veteran players to attend voluntary workouts. A similar type of compensation is a reporting bonus. A player earns this bonus by... Continue Reading →

NFL Contracts Explained: Roster Bonus

A roster bonus is another form of compensation for NFL players. If a player contract contains a roster bonus n it, it is considered earned when the player remains on his team’s roster on a specified date. This type of bonus typically counts against the salary cap, in whole, during the League Year that it... Continue Reading →

NFL Contracts Explained: Signing Bonus

A signing bonus, as the name suggests, is an upfront payment a player receives to sign his contract. When it comes to salary cap accounting rules, signing bonuses and P5 salaries are completely different. The amount a player gets to sign can be prorated or spread across the life of the contract (up to a... Continue Reading →

NFL Contracts Explained: Paragraph 5 Salary

Surely, anyone who pays attention to ESPN or NFL Network coverage has heard the terms “base salary” or “game check.” In the NFL Collective Bargaining Agreement, this salary is referred to as Paragraph 5 (P5) Salary because its details are set forth in the fifth paragraph of the standard NFL player contract. A player’s P5... Continue Reading →

NFL Contracts Explained: Split Contracts

When a player is not on a team’s Active or Inactive List, the team can reduce that player’s salary due to his services being unavailable (i.e. on a team’s Injured Reserve list). Many young players, typically late-round draft picks, will sign what are referred to as Split Contracts to reduce the financial burden to teams... Continue Reading →

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