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Deal Summary of
All Revenue System as basis for Player compensation


                   Eliminates issue of growing cost credit deductions and decreasing shares of All Revenue


                                  Bands of Player Share 48.5% to Guaranteed Floor of 47%


                                       Creates $610M Legacy Fund for Pre-93 Players


                                                    No Rookie Wage Scale


                                              Rookie Savings = $950M 10 years


                               Teams make first contribution to Pensions for first time in history


                             Guaranteed 99% -95% League Wide Spend for first time in history


                                    89% cash spend of Salary Cap for first time in history


                                         Minimum Salary increase of $55K from 2010


                                Guaranteed Contracts against Injury up to Year 3 for first time

NFLPA Discretionary use of $20M per year for health, safety and former player issues




Major Economic New Deal Points
Eliminates 2-a-day practices




                                                   Average one (1) padded practice per week




                                              Maximum 4.5 hours of field per day in training camp




                                          One (1) padded practice limited to 3 hours in training camp




                                              Second practice limited to non-helmet walk through




                                        Unannounced inspections by NFLPA Staff to ensure compliance



Spring Semester Off: Limit of 9 week off season conditioning program; veterans do not report until the 3rd week in April; reduces OTAs from 14 to
                                     10; maximizes time for players to return to school to complete degree




Major New Work Rule Deal
Points
League Demands Rejected
Players’ share of Revenue is derived
from the following streams:



• 55% of
League
                                             Larger Share of TV Revenue




Media (TV,
 Radio,                                      Incentivizes Local Growth
                                              Revenue




Players’ Percentage of AR
TOTAL REVENUE SYSTEM                            ALL REVENUE SYSTEM




    2006-2009 Cost Credits tripled                   No Cost Credit System




3% decrease in All Revenue Share in 3
                                          Player Share floor at $47% Upper Band 48.5%
                years


  Credits to Owners offset share to
                                        Eliminates needneed for audited financials
                                         Eliminates for audited financials to ensure fair
  Players without Audited Financial                         share
             Statements                              to ensure fair share


                                           Guarantees players share of rising
                                         revenue for the first time in history with
                                           99% and 95% spends of the camp


Total Revenue vs. All Revenue
Guarantee of no less than
                             True up to actual revenues
47% share over the life of
                                     each year
     the Agreement




GuaranteeVerifications of AR System
Salary Cap set     Performance      Guaranteed
99% Spend of   at $120.375M       Based Pay in       Spend =
    Cap        with $22.025M     2011 is devoted    $119.2M in
                                     to cap        2011. It was
               in benefits for




2011 Cap - Transition
Guaranteed League-Wide Cash Spend of 99% of the Salary Cap in
                          2011-12



   Guaranteed League-Wide Cash Spend of 95% in 2013-16 and
                   2017-20 four year periods



Minimum Team Cash Spend - 89% of Cap in 2013-16 and 2017-20 on
                    a four year average




Minimum Spend Requirements
Overall limit on total rookie compensation of $874M in 2011, increasing with
                                     cap




    First year rookie compensation of $159M in 2011, increasing with cap




 Mandatory contract length
• 4 years (plus a 5th year club option for Round 1)
• 4 years for Rounds 2 to 7




Rookie Compensation
5th year club option
               for 1st rounder to be
               exercised after the
               player’s 3rd season,


 Picks 1 to10 –               Picks 11 to 32 –
 Salary of the average        Salary of the average
 of the top ten players       of the top 3rd through
 at player’s position         25th players at




Rookie Compensation
As a quarterback, the 1st pick in the 2011
  Draft may earn $22.03M over four years,
    plus an option year salary of $14.3M
(assuming a 5% growth rate) in his 5th year if
   No limit on the amount of guaranteed
  money a player may contract for with his
  allocation, except guarantees can’t skip
                   years.



Rookie Compensation
Proven Performance Escalator for Rounds
3 -7 in the fourth year based on 35% play
time in two of the first three seasons or an
     average of 35% over three years

Escalator increases 4th year salary to the
ROFR amount which is $1.2M in 2011 but
     increases with the Salary cap



Rookie Compensation
Savings from change in Rookie
compensation system calculated to be $25m
 for 2012, $50m for 2013, $100m in 2014,
and increasing each year thereafter with the

  Savings to be spent on Legacy fund,
 veteran performance pool or any other
purpose the NFLPA may deem appropriate



Rookie Compensation
CS       2011      2012    2013   2014
0        375       390     405    420
1        450       465     480    495
2        525       540     555    570
3        600       615     630    645
4-6      685       700     715    730
7-9      810       825     840    855
10+      910       925     940    955




Minimum Salaries
Increased $55k from 2010
Guaranteed Contracts
Against Injury (New Benefit)
Limited to 9 weeks



Three Phases
• Phase One
  • Two weeks; limited to strength and conditioning




Fines for violations (in addition to week of lost
workouts):
• Coaches - $100K for 1st violation; $250K for 2nd
 • Clubs - $250K for 1st violation; $500K for 2nd




Offseason Workouts
Physicals on Monday but not practice;
 practices Tuesday – Thursday; day off on
 Friday



 Maximum of 3 ½ hours on the field per
 day
 • One practice per day up to 2 ½ hours
 • Second practice limited to walk through




Minicamp
Mandatory veteran reporting date no earlier than [15] days prior to the first preseason game




                          1st day limited to physicals and meetings




                              2nd and 3rd day no pads or contact




Only one padded practice per day limited to 3 hours with the second practice up to the 4 hour
                               limit being a walk through




Preseason
Limit of 14 total padded practices during the Regular Season, 11 of
which must be held during the first 11 weeks (club may hold 2 padded



           One padded practice per week in postseason




               Padded practices limited to 3 hours




             Bye Weeks – [five] consecutive days off




Regular/Postseason
League wide rules regarding maximum
forfeiture provisions for signing, roster, report
              and option bonuses

      Forfeiture limited and generally
   proportionate to games missed due to
breach (e.g. missing training camp for six
  days would result in forfeiture of 15% of



Forfeiture Provisions
System Arbitrator for AR, Salary Cap and free agency issues selected
                            by the parties.



Appeals to a 3-member appeals panel, including at least one former
                            judge.




                    3-year statute of limitations.




Dispute Resolution
$620M to be paid to former players during the term of the Agreement




           51% to be paid by the NFL outside of the cap




           49% to be paid out of the players share of AR




Legacy Fund
Ten years through the 2020 Season




      2021 draft; end of deal rights



Length of Agreement/Rights
on Termination
All Players can                                                     All Players can sign
negotiate starting                          Roster Bonuses have     on July 29
                     Training camp starts
July 26                                     to be on Roster after   • No rushing of
                        July 27, 28, 29
• Rookies can                                  4:00 PM July 29      signings
sign on July 26                                                     • All free agents




Return to Football
Board of Player Representatives and Executive
Committee Recommendation
Training Camps stay on schedule
• Step One: Team by team decision to become a Union
• Step Two: Reconstitution as Union by player vote only
• Step Three: Negotiation of collectively bargained issues
  (ie: improved health and safety; benefits; drug testing;
  pension)
• Step Four: Ratification of CBA by player vote




CBA Ratification Process

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Nuevo Contrato Colectivo 2011

  • 2. All Revenue System as basis for Player compensation Eliminates issue of growing cost credit deductions and decreasing shares of All Revenue Bands of Player Share 48.5% to Guaranteed Floor of 47% Creates $610M Legacy Fund for Pre-93 Players No Rookie Wage Scale Rookie Savings = $950M 10 years Teams make first contribution to Pensions for first time in history Guaranteed 99% -95% League Wide Spend for first time in history 89% cash spend of Salary Cap for first time in history Minimum Salary increase of $55K from 2010 Guaranteed Contracts against Injury up to Year 3 for first time NFLPA Discretionary use of $20M per year for health, safety and former player issues Major Economic New Deal Points
  • 3. Eliminates 2-a-day practices Average one (1) padded practice per week Maximum 4.5 hours of field per day in training camp One (1) padded practice limited to 3 hours in training camp Second practice limited to non-helmet walk through Unannounced inspections by NFLPA Staff to ensure compliance Spring Semester Off: Limit of 9 week off season conditioning program; veterans do not report until the 3rd week in April; reduces OTAs from 14 to 10; maximizes time for players to return to school to complete degree Major New Work Rule Deal Points
  • 5. Players’ share of Revenue is derived from the following streams: • 55% of League  Larger Share of TV Revenue Media (TV, Radio,  Incentivizes Local Growth Revenue Players’ Percentage of AR
  • 6. TOTAL REVENUE SYSTEM ALL REVENUE SYSTEM 2006-2009 Cost Credits tripled No Cost Credit System 3% decrease in All Revenue Share in 3 Player Share floor at $47% Upper Band 48.5% years Credits to Owners offset share to Eliminates needneed for audited financials Eliminates for audited financials to ensure fair Players without Audited Financial share Statements to ensure fair share Guarantees players share of rising revenue for the first time in history with 99% and 95% spends of the camp Total Revenue vs. All Revenue
  • 7. Guarantee of no less than True up to actual revenues 47% share over the life of each year the Agreement GuaranteeVerifications of AR System
  • 8. Salary Cap set Performance Guaranteed 99% Spend of at $120.375M Based Pay in Spend = Cap with $22.025M 2011 is devoted $119.2M in to cap 2011. It was in benefits for 2011 Cap - Transition
  • 9. Guaranteed League-Wide Cash Spend of 99% of the Salary Cap in 2011-12 Guaranteed League-Wide Cash Spend of 95% in 2013-16 and 2017-20 four year periods Minimum Team Cash Spend - 89% of Cap in 2013-16 and 2017-20 on a four year average Minimum Spend Requirements
  • 10. Overall limit on total rookie compensation of $874M in 2011, increasing with cap First year rookie compensation of $159M in 2011, increasing with cap Mandatory contract length • 4 years (plus a 5th year club option for Round 1) • 4 years for Rounds 2 to 7 Rookie Compensation
  • 11. 5th year club option for 1st rounder to be exercised after the player’s 3rd season, Picks 1 to10 – Picks 11 to 32 – Salary of the average Salary of the average of the top ten players of the top 3rd through at player’s position 25th players at Rookie Compensation
  • 12. As a quarterback, the 1st pick in the 2011 Draft may earn $22.03M over four years, plus an option year salary of $14.3M (assuming a 5% growth rate) in his 5th year if No limit on the amount of guaranteed money a player may contract for with his allocation, except guarantees can’t skip years. Rookie Compensation
  • 13. Proven Performance Escalator for Rounds 3 -7 in the fourth year based on 35% play time in two of the first three seasons or an average of 35% over three years Escalator increases 4th year salary to the ROFR amount which is $1.2M in 2011 but increases with the Salary cap Rookie Compensation
  • 14. Savings from change in Rookie compensation system calculated to be $25m for 2012, $50m for 2013, $100m in 2014, and increasing each year thereafter with the Savings to be spent on Legacy fund, veteran performance pool or any other purpose the NFLPA may deem appropriate Rookie Compensation
  • 15. CS 2011 2012 2013 2014 0 375 390 405 420 1 450 465 480 495 2 525 540 555 570 3 600 615 630 645 4-6 685 700 715 730 7-9 810 825 840 855 10+ 910 925 940 955 Minimum Salaries Increased $55k from 2010
  • 17. Limited to 9 weeks Three Phases • Phase One • Two weeks; limited to strength and conditioning Fines for violations (in addition to week of lost workouts): • Coaches - $100K for 1st violation; $250K for 2nd • Clubs - $250K for 1st violation; $500K for 2nd Offseason Workouts
  • 18. Physicals on Monday but not practice; practices Tuesday – Thursday; day off on Friday Maximum of 3 ½ hours on the field per day • One practice per day up to 2 ½ hours • Second practice limited to walk through Minicamp
  • 19. Mandatory veteran reporting date no earlier than [15] days prior to the first preseason game 1st day limited to physicals and meetings 2nd and 3rd day no pads or contact Only one padded practice per day limited to 3 hours with the second practice up to the 4 hour limit being a walk through Preseason
  • 20. Limit of 14 total padded practices during the Regular Season, 11 of which must be held during the first 11 weeks (club may hold 2 padded One padded practice per week in postseason Padded practices limited to 3 hours Bye Weeks – [five] consecutive days off Regular/Postseason
  • 21. League wide rules regarding maximum forfeiture provisions for signing, roster, report and option bonuses Forfeiture limited and generally proportionate to games missed due to breach (e.g. missing training camp for six days would result in forfeiture of 15% of Forfeiture Provisions
  • 22. System Arbitrator for AR, Salary Cap and free agency issues selected by the parties. Appeals to a 3-member appeals panel, including at least one former judge. 3-year statute of limitations. Dispute Resolution
  • 23. $620M to be paid to former players during the term of the Agreement 51% to be paid by the NFL outside of the cap 49% to be paid out of the players share of AR Legacy Fund
  • 24. Ten years through the 2020 Season 2021 draft; end of deal rights Length of Agreement/Rights on Termination
  • 25. All Players can All Players can sign negotiate starting Roster Bonuses have on July 29 Training camp starts July 26 to be on Roster after • No rushing of July 27, 28, 29 • Rookies can 4:00 PM July 29 signings sign on July 26 • All free agents Return to Football
  • 26. Board of Player Representatives and Executive Committee Recommendation Training Camps stay on schedule • Step One: Team by team decision to become a Union • Step Two: Reconstitution as Union by player vote only • Step Three: Negotiation of collectively bargained issues (ie: improved health and safety; benefits; drug testing; pension) • Step Four: Ratification of CBA by player vote CBA Ratification Process