PFR Glossary

PFR Glossary: Returning From IR

Week 1 injuries are starting to affect teams’ rosters. Starters and role players are being placed on injured reserve, a status that continues to evolve via offseason NFL rule changes. More adjustments took place in 2022, which shook up the IR setup of the past two years.

In 2020 and 2021, players placed on IR after the roster cutdown to 53 were permitted to return after three games missed. Teams also were granted considerable flexibility in terms of IR-return volume. After the pre-2020 rules had placed strict limitations on the number of players teams could activate from injured reserve during a season, the NFL — due to the roster uncertainty the COVID-19 pandemic caused — removed the limit of players who could return from IR. Limitations returned this year.

Eight injury-related activations can occur per team over the course of the 2022 season. These apply to players placed on teams’ injured reserve, reserve/non-football injury or reserve/non-football illness lists. The NFL, which removed the reserve/COVID-19 list as a 2022 roster designation, also raised the floor for mandatory games missed due to IR from three to four. Any player moved to IR this week cannot return until Week 6.

While the eight-player rule will reinsert strategy into the IR equation for teams, this maximum is far less restrictive than it was not long ago. For years before the 2012 season, a player being placed on injured reserve meant he was done for the season’s remainder. From 2012-16, teams could bring one player off IR. The player must have missed at least eight games before returning, however, and was not permitted to practice for six weeks. In 2017, two IR-boomerang slots were allowed. The eight-week waiting period remained, but teams could move two players from IR back onto their 53-man rosters.

The 2017 change led to more strategy regarding which players teams would prioritize. That system lasted for three seasons. The March 2020 CBA ratification was to allow three players to be activated from IR per season, but the eight-week waiting period was to remain. The pandemic prompted the league to make sweeping changes five months later, with the August 2020 COVID-related CBA revisions opening the floodgates for in-season activations.

This year’s changes also will enable teams to use two IR-return slots on the same player. Although the league’s first two 2020s seasons featured unlimited activations, players could only be brought back from an injury list once per season. If a player were activated and then placed back on IR, he was done for the rest of the year. In 2022, teams are allowed to activate a player from IR twice (but not three times). If a team were to activate a player off IR twice this year, each move would count toward that team’s eight-activation limit.

The NFL’s Post-June 1 Cuts, Explained

NFL teams will often use contract bonuses as a way to spread out a cap hit that might otherwise be exorbitant. For example, if a player’s four-year deal includes a $8MM signing bonus, that money can be paid immediately but spread out over four years for cap purposes. This way, the cap charge for the bonus amounts to $2MM per year for cap purposes, rather than $8MM in year one.

There’s an obvious benefit to kicking the can down the road, but it can also hurt teams if they want to terminate that deal. If the club in the above scenario wanted to release the player in the second year of his contract, it would still have to account for that remaining prorated bonus money. Rather than counting on the cap as $2MM per year for two seasons, that dead money “accelerates,” and applies to the cap for the league year in which the player is released. In other words, the remaining $4MM in prorated bonus money immediately counts against the cap.

Although these rules apply to many cuts, a different set of rules is in place for players released after June 1. In that case, a team can spread the cap hit across two seasons rather than one — for the current season, the prorated bonus figure stays at its original amount, with the remaining bonus balance accelerating onto the following season. Referring again to the above scenario, that means the player would count against the cap for $2MM in the league year in which he was cut, with the remaining $4MM applying to the following league year.

The guidelines for pre-June 1 and post-June 1 cuts are fairly straightforward, but things become a little more complicated when we take into account that teams are allowed to designate up to two players as post-June 1 cuts even if those players are released before June.

Of course, teams won’t always opt for the dead money deferral. For example, when the Panthers dropped Kawann Short’s contract last year, they swallowed a $11MM cap hit, rather than having it linger into 2022. That gave them a cleaner long-term slate, propelling them to ~$24MM in cap room for this offseason.

The NFL’s Post-June 1 Cuts, Explained

NFL teams will often use contract bonuses as a way to spread out a cap hit that might otherwise be exorbitant. For example, if a player’s four-year deal includes a $8MM signing bonus, that money can be paid immediately but spread out over four years for cap purposes. This way, the cap charge for the bonus amounts to $2MM per year for cap purposes, rather than $8MM in year one.

There’s an obvious benefit to kicking the can down the road, but it can also hurt teams if they want to terminate that deal. If the club in the above scenario wanted to release the player in the second year of his contract, it would still have to account for that remaining prorated bonus money. Rather than counting on the cap as $2MM per year for two seasons, that dead money “accelerates,” and applies to the cap for the league year in which the player is released. In other words, the remaining $4MM in prorated bonus money immediately counts against the cap.

Although these rules apply to many cuts, a different set of rules is in place for players released after June 1. In that case, a team can spread the cap hit across two seasons rather than one — for the current season, the prorated bonus figure stays at its original amount, with the remaining bonus balance accelerating onto the following season. Referring again to the above scenario, that means the player would count against the cap for $2MM in the league year in which he was cut, with the remaining $4MM applying to the following league year.

The guidelines for pre-June 1 and post-June 1 cuts are fairly straightforward, but things become a little more complicated when we take into account that teams are allowed to designate up to two players as post-June 1 cuts even if those players are released before June.

Take the Saints and star Michael Thomas for example. The Saints are currently slated to have him at a 2022 cap number of $24.7MM. If they were to release or trade him, they’d be left with $22.7MM in dead money. But, with a post-June 1 designation, they’d have a milder $15.8MM dead money charge. The same applies to defensive end Cameron Jordan and more of their high-paid stars, so it’s safe to say that the Saints will take full advantage of the rule as they dig themselves out of a major salary cap hole.

Of course, teams won’t always opt for the dead money deferral. For example, when the Panthers dropped Kawann Short’s contract last year, they swallowed a $11MM cap hit, rather than having it linger into 2022. That gave them a cleaner long-term slate, propelling them to ~$24MM in cap room for this offseason.

PFR’s NFL Glossary: Waivers

Here at Pro Football Rumors, you’ll see a number of stories posted on players being cut, waived, or released by their NFL teams. While these terms are often used interchangeably, they’re not quite synonymous. A player who is “cut” has been removed from his team’s roster, but whether he is “waived” or “released” generally depends on his NFL experience.

Between the day after the Super Bowl and the following season’s trade deadline, players with less than four years of service time – or “accrued seasons” – have to pass through waivers after they’re cut by an NFL team. The other 31 clubs around the league have a day to place a waiver claim on that player, adding him to their roster and taking on his contract. That’s why we refer to these players as having been waived, rather than released.

If a player with more than four years of service time is cut between the Super Bowl and the trade deadline, he is not subjected to the waiver process, meaning he becomes a free agent immediately, able to sign with a new team right away if he so chooses.

This isn’t the case all year round, however. Once the trade deadline passes, any player who is cut by his team must pass through waivers, regardless of how many accrued seasons are on his resume. So if a team drops a 12-year veteran in Week 10 of the season, that player must pass through waivers unclaimed before he’d be free to sign with a team of his choice.

Here are a few more details on the waiver process:

  • If two teams place a waiver claim on the same player, he is awarded to the team with the higher priority. Waiver priority is determined by the previous season’s standings — this year, for example, the Jaguars have first dibs, while the Super Bowl champion Bucs have 32nd priority.
  • However, the waiver priority order will change starting in Week 4. At that point, waiver priority is determined by records of the current season.
  • The window to claim a player closes at the end of the NFL’s business day, which is at 4pm central. So if a player is waived by one team on Monday, the other 31 clubs have until Tuesday afternoon to submit a claim. Players cut on Friday clear waivers (or are awarded to a new team) on the following Monday.
  • Prior to the first cutdown date in training camp, injured players with fewer than four years of service time cannot be placed on injured reserve until they pass through waivers. Teams will cut this sort of player with a waived-injured designation, allowing other teams to place a claim if they so choose. If the player goes unclaimed, his team can place him on IR or agree to an injury settlement, then fully release him from the roster.

Note: This is a PFR Glossary entry. Our glossary posts explain specific rules relating to free agency, trades, or other aspects of the NFL’s Collective Bargaining Agreement.

PFR’s NFL Glossary: The Fifth-Year Option

Every year, NFL teams have until May 3 to officially pick up their options on first-round picks who are entering the final year of their rookie deals. In a change from years past, fifth-year option seasons are now fully guaranteed, rather than guaranteed for injury only. Meanwhile, salaries are now determined by a blend of the player’s position, initial draft placement, and specific performance metrics:

 

  • 2-time Pro Bowlers (excluding alternate Pro Bowlers) will earn the same as their position’s franchise tag.
  • 1-time Pro Bowlers will earn the equivalent of the transition tag.
  • Players who achieve any of the following will get the average of the 3rd-20th highest salaries at their position:
    • 75%+ snaps in two of their first three seasons
    • 75%+ average across all three seasons
    • 50%+ in each of first three seasons
  • Players who do not hit any of those benchmarks will get the average of the 3rd-25th top salaries at their position.

This year, some believed that we’d see less players have their options exercised due to the full guarantee. Instead, 20 out of 32 players had their options picked up. (Really, 21/32, when considering Kolton Miller’s extension with the Raiders):

  1. QB Baker Mayfield, Browns: Exercised ($18.858MM)
  2. RB Saquon Barkley, Giants: Exercised ($7.217MM)
  3. QB Sam Darnold, Panthers (via Jets): Exercised ($18.858MM)
  4. CB Denzel Ward, Browns — Exercised ($13.294MM)
  5. LB Bradley Chubb, Broncos — Exercised ($12.716MM)
  6. G Quenton Nelson, Colts — Exercised ($13.754MM)
  7. QB Josh Allen, Bills: Exercised ($23.106MM)
  8. LB Roquan Smith, Bears: Exercised ($9.735MM)
  9. OT Mike McGlinchey, 49ers: Exercised ($10.88MM)
  10. QB Josh Rosen, Cardinals: N/A (traded/released from original rookie deal)
  11. S Minkah Fitzpatrick, Steelers (via Dolphins): Exercised ($10.612MM)
  12. DT Vita Vea, Buccaneers: Exercised ($7.638MM)
  13. DT Daron Payne, Washington — Exercised ($8.529MM)
  14. DE Marcus Davenport, Saints: Exercised ($9.553MM)
  15. OT Kolton Miller, Raiders — N/A (extension)
  16. LB Tremaine Edmunds, Bills: Exercised ($12.716MM)
  17. S Derwin James, Chargers: Exercised ($9.052MM)
  18. CB Jaire Alexander, Packers: Exercised ($13.294MM)
  19. LB Leighton Vander Esch, Cowboys: Declined ($9.145MM)
  20. C Frank Ragnow, Lions: Exercised ($12.657MM)
  21. C Billy Price, Bengals: Declined ($10.413MM)
  22. LB Rashaan Evans, Titans: Declined ($9.735MM)
  23. OT Isaiah Wynn, Patriots: Exercised ($10.413 MM)
  24. WR D.J. Moore, Panthers: Exercised ($11.116MM)
  25. TE Hayden Hurst, Falcons (via Ravens): Declined ($5.428MM)
  26. WR Calvin Ridley, Falcons: Exercised ($11.116MM)
  27. RB Rashaad Penny, Seahawks: Declined ($4.523MM)
  28. S Terrell Edmunds, Steelers: Declined ($6.753MM)
  29. DT Taven Bryan, Jaguars: Declined ($7.638MM)
  30. CB Mike Hughes, Vikings: Declined ($12.643MM)
  31. RB Sony Michel, Patriots: Declined ($4.523MM)
  32. QB Lamar Jackson, Ravens: Exercised ($23.106MM)

Last year, only 17 players from the 2017 class saw their fifth-year options exercised for the 2021 season. Meanwhile, the 2016 class saw 20 options exercised. So, even with the 100% guarantee, things panned out roughly the same this year.

PFR’s NFL Glossary: Offset Language

Ever since the 2011 Collective Bargaining Agreement, rookie contracts have been fairly regimented. Now, negotiations between teams and draft picks go pretty smoothly, with few – if any – unsigned rookies by the time training camp starts. 

These days, if there is haggling, it’s usually due to offset language. Offset language relates to what happens to a player’s salary if he’s cut during the first four years of his career, while he’s still playing on his rookie deal. For the top 15 to 20 picks in the draft, those four-year salaries are fully guaranteed, even if a player is waived at some point during those four seasons. For example, if a player has $4MM in guaranteed money remaining on his contract and is cut, he’ll still be owed that $4MM.

However, if a team has written offset language into the contract, that club can save some money if and when the player signs with a new team. For example, if that player who had $4MM in guaranteed money left on his contract signs with a new club on a $1MM deal, his old team would only be on the hook for $3MM, with the new team making up the difference. If there’s no offset language on that first deal, the old team would continue to be on the hook for the full $4MM, and the player would simply earn an additional $1MM from his new club.

In 2015, Marcus Mariota‘s camp went back-and-forth with the Titans until the two sides finally agreed to partial offset language in late July. In 2016, Joey Bosa’s holdout dominated headlines until the linebacker inked his deal on August 29th. In most cases, a lack of offsets for a player simply depends on which team drafted him — clubs like the Rams and Jaguars traditionally haven’t pushed to include offsets in contracts for their top picks, even in an era where most other teams around the league do.

Last year, Dolphins quarterback Tua Tagovailoa and Panthers defensive lineman Derrick Brown were the first Round 1 picks to sign and they agreed to offset language. It’s impossible to gauge how this year’s top stars will approach those talks, but offsets rarely come into play for elite prospects – few top picks flame out badly enough to get cut inside of four years. And even in those rare instances, if a player has performed poorly enough to be cut in his first few years, he likely won’t land a big-money deal elsewhere, so offset language wouldn’t help his old club recover more than the league minimum.

The NFL’s Post-June 1 Cuts, Explained

NFL teams will often use contract bonuses as a way to spread out a cap hit that might otherwise be exorbitant. For example, if a player’s four-year deal includes a $8MM signing bonus, that money can be paid immediately but spread out over four years for cap purposes. This way, the cap charge for the bonus amounts to $2MM per year for cap purposes, rather than $8MM in year one.

There’s an obvious benefit to kicking the can down the road, but it can also hurt teams if they want to terminate that deal. If the club in the above scenario wanted to release the player in the second year of his contract, it would still have to account for that remaining prorated bonus money. Rather than counting on the cap as $2MM per year for two seasons, that dead money “accelerates,” and applies to the cap for the league year in which the player is released. In other words, the remaining $4MM in prorated bonus money immediately counts against the cap.

Although these rules apply to many cuts, a different set of rules is in place for players released after June 1. In that case, a team can spread the cap hit across two seasons rather than one — for the current season, the prorated bonus figure stays at its original amount, with the remaining bonus balance accelerating onto the following season. Referring again to the above scenario, that means the player would count against the cap for $2MM in the league year in which he was cut, with the remaining $4MM applying to the following league year.

The guidelines for pre-June 1 and post-June 1 cuts are fairly straightforward, but things become a little more complicated when we take into account that teams are allowed to designate up to two players as post-June 1 cuts even if those players are released before June. Last offseason, we players like Trey Burton (Bears), Desmond Trufant (Falcons), Trumaine Johnson (Jets), and Todd Gurley (Rams) designated as post-June 1 cuts well before the actual date.

In the case of Johnson, the Jets were initially slated to pay him $11MM in base salary. Under typical circumstances, the release would have left Gang Green with a $12MM dead money obligation for 2020. However, through the post-June 1 designation, they unlocked $11MM in cap space with just $4MM in dead money. This year, they’ll wrangle with the remaining $8MM charge.

Of course, teams won’t always opt for the dead money deferral. For example, the Panthers just recently terminated Kawann Short’s contract, which left $11MM lingering on the cap. Rather than spreading it out, the Panthers chose to take it all on the current cap for a cleaner long-term slate. And, even if the team doesn’t use that cap space for summer free agents, it can come in handy for signing draft picks.

The NFL’s Post-June 1 Cuts, Explained

NFL teams will often use contract bonuses as a way to spread out a cap hit that might otherwise be exorbitant. For example, if a player’s four-year deal includes a $8MM signing bonus, that money can be paid immediately but spread out over four years for cap purposes. This way, the cap charge for the bonus amounts to $2MM per year for cap purposes, rather than $8MM in year one.

There’s an obvious benefit to kicking the can down the road, but it can also hurt teams if they want to terminate that deal. If the club in the above scenario wanted to release the player in the second year of his contract, it would still have to account for that remaining prorated bonus money. Rather than counting on the cap as $2MM per year for two seasons, that dead money “accelerates,” and applies to the cap for the league year in which the player is released. In other words, the remaining $4MM in prorated bonus money immediately counts against the cap.

Although these rules apply to many cuts, a different set of rules is in place for players released after June 1. In that case, a team can spread the cap hit across two seasons rather than one — for the current season, the prorated bonus figure stays at its original amount, with the remaining bonus balance accelerating onto the following season. Referring again to the above scenario, that means the player would count against the cap for $2MM in the league year in which he was cut, with the remaining $4MM applying to the following league year.

The guidelines for pre-June 1 and post-June 1 cuts are fairly straightforward, but things become a little more complicated when we take into account that teams are allowed to designate up to two players as post-June 1 cuts even if those players are released before June. Last offseason, we players like Trey Burton (Bears), Desmond Trufant (Falcons), Trumaine Johnson (Jets), and Todd Gurley (Rams) designated as post-June 1 cuts well before the actual date.

In the case of Johnson, the Jets were initially slated to pay him $11MM in base salary. Under typical circumstances, the release would have left Gang Green with a $12MM dead money obligation for 2020. However, through the post-June 1 designation, they unlocked $11MM in cap space with just $4MM in dead money. This year, they’ll wrangle with the remaining $8MM charge.

Of course, teams won’t always opt for the dead money deferral. For example, the Panthers just recently terminated Kawann Short’s contract, which left $11MM lingering on the cap. Rather than spreading it out, the Panthers chose to take it all on the current cap for a cleaner long-term slate. And, even if the team doesn’t use that cap space for summer free agents, it can come in handy for signing draft picks.

Photo courtesy of USA Today Sports Images.

2021 NFL Franchise and Transition Tags, Explained

Tuesday, February 23rd marks first day that teams can apply the franchise tag to free-agents-to-be for 2021. While no clubs have designated franchise players yet, there will likely at least a handful of players receiving the tag before the March 9 deadline, so it’s worth taking an in-depth look at what exactly it means to be designated as a franchise player.

Essentially, the franchise tag is a tool that a team can use to keep one of its free agents from freely negotiating with rival suitors on the open market. Designating a franchise player means tendering that player a one-year contract offer. The amount of that offer changes every year and varies from position to position. The number will also differ lightly depending on what sort of specific tag the team employs. Here’s a breakdown of the three types of franchise/transition tags:

Exclusive franchise tag:

  • The amount of the one-year offer is either the average of the top five highest-paid players at the player’s position in the current league year or 120% of the player’s previous salary, whichever is greater. The top five highest-paid players at the position are determined once the free agent signing period ends, so the exact amount isn’t known until then.
  • The player isn’t allowed to negotiate with other teams.
  • The player and his team have until mid-July to work out a multiyear agreement. After that date, the player can only sign a one-year contract.
  • The exclusive tag is typically only used for extremely valuable free agents, such as franchise quarterbacks.

Non-exclusive franchise tag:

  • The amount of the one-year offer is determined by a formula that includes the salary cap figures and the non-exclusive franchise salaries at the player’s position for the previous five years. Alternately, the amount of the one-year offer can be 120% of the player’s previous salary, if that amount is greater.
  • The player is free to negotiate with other teams. If he signs an offer sheet with another team, his current team has five days to match the offer.
  • If the offer is not matched, the player’s previous team will receive two first-round draft picks as compensation from the signing team.
  • As is the case with the exclusive franchise tag, the deadline will also come in mid-July.
  • Due to the attached compensatory picks, the non-exclusive franchise tag is generally sufficient for free agents. Few rival suitors are willing to sacrifice multiple first-rounders in order to sign a free agent to a lucrative deal, so there’s not much risk for a team to give up exclusive negotiating rights.

Transition tag:

  • The amount of the one-year offer is either the average of the top 10 highest-paid players at the player’s position in the previous league year or 120% of the player’s previous salary, whichever is greater.
  • The player is free to negotiate with other teams. If he signs an offer sheet with another team, his current team has five days to match the offer.
  • If the offer is not matched, the player’s previous team does not receive any compensatory draft picks.
  • Because it does not include any draft compensation or exclusive negotiation rights, and is only slightly more affordable, the transition tag is rarely used. However, it can be an effective placeholder for teams.

The exact amounts of these tags won’t be known until sometime after the salary cap number for 2021 is announced. Of course, this year’s cap is expected to drop from last year’s figure, though it will be no lower than $180MM, the agreed upon floor for the coming year.

This year’s candidates for the franchise tag include Cowboys quarterback Dak Prescott, Bears wide receiver Allen Robinson, and Buccaneers wide receiver Chris Godwin. Here are a few other notes to keep in mind as the franchise tag period gets underway:

  • A team can withdraw a franchise or transition tag at any time once when the free agent period begins, but it would immediately make the player an unrestricted free agent, allowing him to sign with any team.
  • If a player is designated a franchise player for a third time, the amount of his one-year offer is equal to the exclusive franchise salary for the highest-paid position (QB), 120% of the five largest prior-year salaries at his position, or 144% of his previous salary. That’s generally a non-starter, but there are no 3x-tag candidates in this year’s class anyway.
  • Teams are allowed to designate one franchise player and one transition player per offseason. A team can also designate two transition players if it doesn’t designate a franchise player, but can’t designate two franchise players.
  • Restricted free agents can be designated as franchise players.
  • If a player chooses to sign the one-year franchise tender, his salary is essentially guaranteed. The CBA notes that if a team releases the player due to a failure “to establish or maintain his excellent physical condition,” the team may recoup his salary. However, a franchise player released due to poor performance, injury, or cap maneuvering will receive his full salary.

Note: Information from OverTheCap.com was used in the creation of this post.

NFL Contract Guarantees, Explained

Unlike in the NBA or MLB, players’ contracts in the NFL aren’t guaranteed by default. Typically, an NFL player will receive at least some guaranteed money when he signs a deal, but that money often comes in the form of contract bonuses, and in particular signing bonuses. While a player’s base salary, or P5 salary, will occasionally be guaranteed for a season or two, more often than not future seasons in that contract are fully non-guaranteed, allowing the team to escape the contract without much of a cap hit, particularly if the player’s bonus money was limited.

Take Vontaze Burfict for example. The linebacker inked a three-year, $33MM extension with the Bengals in 2017 with just $3.3MM in total guarantees. Rather than carrying Burfict at a $7.3MM cap figure in 2018, the Bengals released him in March, leaving just $1.8MM in dead money against $5.5MM in savings. At the time of signing, Burfict was ticketed to be the highest-paid 4-3 outside linebacker in the game on a per-year basis, but the Bengals were able to pull the plug and pay out only a portion of that commitment.

Signing bonuses, which are generally paid in one or two lump sums, are fairly straightforward forms of guaranteed money, but not all guaranteed money is created equal. We saw a prime example of that when Colin Kaepernick inked a long-term extension with the 49ers in 2014. When word of the agreement first broke, Kaepernick’s guaranteed money was reported to exceed $60MM+. However, upon learning the full details of the contract, we found that only about $13MM of that total was fully guaranteed, whereas another $48MM+ was guaranteed for injury only.

An injury-only guarantee is one of three types of guarantees that a team can write into a player’s contract that apply to his base salary in a given season. These guarantees are as follows:

  • Guaranteed for injury: If a player suffers a football injury and cannot pass a physical administered by the team doctor, he would still be entitled to his full salary if the team were to release him. For a player with several future seasons guaranteed for injury only, it would take a career-ending injury for the team to be on the hook for all those future injury-only guaranteed salaries.
  • Guaranteed for skill: The most subjective of the three, a player whose talents have significantly declined and is released for skill-related reasons (ie. another player beats him out for a roster spot) would still be entitled to his full salary if that salary is guaranteed for skill.
  • Guaranteed for cap purposes: This form of guarantee ensures that a player who is released due to his team’s need to create cap room will still be entitled to his full salary.

A team can use a combination of these forms of guarantees, making a player’s salary guaranteed for injury and skill, for example. In the event that a player’s salary is guaranteed for injury, skill, and cap purposes, we’d refer to that salary as fully guaranteed, since the player would be eligible for his full salary regardless of the reason for his release.

As is the case with prorated bonuses, all future guaranteed salary owed to a player by a team is considered “dead money” and would accelerate onto the club’s current cap in the event of his release (over one or two years, depending on whether the cut happens after June 1). For the most part though, beyond the first year or two of a deal, that prorated signing bonus money is the only guaranteed figure remaining on the contract, which is why teams often don’t have qualms about releasing a player in the later years of his deal.