What OPTING out means for the future

[yuccaneers]

when the last game is played for 2008 season

The first is that all signing bonus prorations are limited to 5 years instead of the current 6 years (making signing bonuses take up more cap per year). In 2009 there will be no cap relief for waiting until June 1st or later to cut someone. The June 1st cuts will be a thing of the past (though it nearly is anyway with being able to designate up to two players as June 1st cuts as early as February). Any LTBE bonuses in 2009 that aren’t obtained will no longer be able to be carried over into the next year but instead will free up cap in 2009 immediately upon determination that the bonus can not be obtained. All NLTBE bonuses will hit the cap in 2009 instead of hitting the cap in 2010 as soon as it is earned. (This could force a team to exceed the cap with no means of correcting it with the sole exception of being forced to either restructure enough contracts to get back under the cap or to be fined and lose draft picks for exceeding the cap.) A player’s salary can not go up more then 30% from 2009 to 2010. Any guaranteed salaries from 2010 and beyond will be allocated to 2009 unless 2009’s entire salary is guaranteed as well . Any guaranteed salaries after 2012 will have 50% of it allocated to the 2009 cap year (reducing a teams available cap for 2009). A team can include only three incentives in a player contract covering 2009 and beyond. (These incentives must also be coupled with a playing time requirement. Previously, clubs were limited to eight team incentives and there was no playing time requirement).

Player benefits are expected to decline in the uncapped year. The union agreed that in the uncapped year clubs would be relieved of their obligation to fund numerous benefit programs. Examples include second career savings (401K), player annuity, severance pay and tuition assistance. The total league-wide contributions to such plans in 2009, the last capped year, are expected to be in excess of $225 million, or more than $7 million per club. (This amount comes out of the 40% of revenues that doesn’t go to players salaries already).

Currently players with 4 years or more of NFL accrued seasons are considered unrestricted free agents. Starting in 2010 that goes to 6 years. Meaning a player will be a restricted free agent at 3, 4 and/or at 5 years of experience instead of just 3 years. (An accrued season means being on the roster for 6 games, even if it’s on PUP or IR). That means any draft picks (or undrafted free agents) still on the teams roster from 2005 and 2006 will NOT be an unrestricted free agent in 2010 assuming they had a contract of 4 years or less to begin with. They will become restricted free agents and subject to RFA rules.

Currently teams may designate or tag one player with either a franchise tag or a transition tag. Beginning in 2010 a team can transition tag a second player as well. (One story indicated that there would be 3 tags per year but I can not verify he was correct, all other sources say otherwise).

Beginning in 2010 the 8 divisional winners from 2009 can only sign a free agent if one of their own players signs elsewhere. They may not sign more players in free agency then they lose. In addition, the four teams that lose the divisional playoffs may sign players based on some financial provisions (not yet defined that I could find).

There will be no minimum team salary in 2010. (Currently teams must spend at least $100.224 million.)

2011 could be the last NFL draft.

The Deion rule comes into play. This is a complicated and highly technical rule named after Deion Sanders because Jerry Jones signed him to the league minimum salary of just $178,000 for the first 3 years (back then) but gave him an unheard of astronomical signing bonus of $13 million (another number that has become "normal" years later). Essentially the "Deion Rule" states that if the prorated share of the signing bonus for the first 3 years is greater then the salaries and roster/reporting bonuses for the first 3 years then the overage must be allocated to the cap now as a Deion cap charge (and the same amount gets credited to future cap years if there is a cap).

Gathered this information from several resources as well as a Cap Forum

[yuccaneers]

For any multiyear Player Contract entered into in a Capped Year prior to the last Capped Year that
extends into any Uncapped Year, 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 Contract (but, if there are fewer than three remaining Capped Years, during the first three
years of the Contract) is in the aggregate less than (ii) the portion of the Contract’s signing bonus that would be
allocated to those League Years if the signing bonus were prorated equally over the term of the 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 reallocated in equal portions over the Capped Years
of the Contract (or, if there are fewer than three Capped Years within the term of the Contract, over the first
three years of the Contract). For purposes of this Subsection only, a renegotiation shall be treated as if it is an
entirely new Player Contract.


..........................................................................


(a) No NFL Player Contract entered into in an Uncapped Year prior to the Final League Year may
provide for an annual decrease in Salary, excluding any amount attributable to a signing bonus as defined in
Section 7(b)(iv) above, of more than 30% of the Salary of the first League Year of the contract per year. This
rule shall not apply in any Capped Year to any Player Contract that was signed in the 1993 League Year or
earlier.

(b) No NFL Player Contract entered into in a Capped Year and extending into the Final League Year or
beyond may provide for an annual increase in Salary, excluding any amount attributable to a signing bonus as
defined in Section 7(b)(iv) above, of more than 30% of the Salary provided for in the Final Capped Year, per
year, either in the Final League Year or in any subsequent League Year covered by the Player Contract. For
example, without limitation on any other applicable example, a four-year Player Contract signed in the 2011
League Year, assuming that it is Capped, may not provide for an annual increase of more than 30% of the 2011
League Year Salary, excluding amounts treated as a signing bonus, in any of the three additional League Years
covered by the Contract.

..........................................................................

provided, however, that if any League Year other than the 2012 League Year is an Uncapped Year, then
the minimum Paragraph 5 Salary for each such Uncapped Year shall only increase $10,000 from the prior
League Year (e.g., if the 2010 League Year is Uncapped, then the minimum Paragraph 5 Salary for a
player with zero Credited Seasons for 2010 shall be $320,000 instead of $325,000).

...........................................................................


(c) Contracts executed or renegotiated after any notice of early termination of this Agreement, as well as
the exercise after such notice of any pre-existing option or contract rights shall be governed by the then-existing
Salary Cap rules, taking into account the consequences of any such early termination (e.g., the conversion of
2009 to the Final Capped Year and the conversion of 2010 to an Uncapped Year).

...............................................................................



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 $4,925,000 or more;
and

(ii) Any number of such players for a Player Contract that has a first year Salary of no more
than $3,275,000 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 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 ($4,925,000 and $3,275,000) shall increase
each League Year following the 2006 League Year by the same percentage as the increase in Projected TR
over the prior League Year’s TR (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 TR for the League Year in question is not greater than the highest TR of
any previous League Year.

Section 6. Salary Definition: For purposes of this Article, “Salary� means Paragraph 5 Salary, roster and
reporting bonuses, pro-rata 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.

December 6, 2006 DRAFT
ARTICLE XXI
FINAL EIGHT PLAN (CONT.)

49
Section 8. Transition and Franchise Players: 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.

Section 9. Player Tenders: Each of the eight teams subject to the Final Eight Plan 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 Agent whose team did not make the June 1 Tender or
whose team subsequently withdrew that Tender.

[alldaway]

Beginning in 2010 the 8 divisional winners from 2009 can only sign a free agent if one of their own players signs elsewhere. They may not sign more players in free agency then they lose. In addition, the four teams that lose the divisional playoffs may sign players based on some financial provisions (not yet defined that I could find).

That is an interesting way of ensuring some level of parity with the uncertainty head foward.  As it has been mentioned before a lot of these road blocks are place to encourage the owners to not opt out.  Lets hope they have been informed properly on the situation.

[The Q]

I read all of the above and now I have a headache. And am really, really, confused.