Key Points on NFL Rookie Pay

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In a post from June 27, I was talking about the “conversation” I attended with NFL Commissioner Roger Goodell — specifically the topic of rookie salaries. Well, here are some points to keep in mind regarding the contention that high rookie contracts are good for NFL veterans because they drive veteran contracts higher:

• It’s not true that exorbitant rookie salaries benefit the veterans as a group. It can’t be, not in a capped system.
• In a capped system, there is a defined amount of money in the system. It’s one pie and a zero-sum game (win-lose, not win-win). Every additional dollar going to an unproven rookie means one less dollar going to veterans.
• High rookie contracts may drive high contracts for a select group of elite veterans — the stars. But if that’s true, it’s the rank-and-file veterans that lose out. If an additional dollar going to an unproven rookie drives another dollar to an elite player, that means two dollars less going to rank-and-file veterans.
• And, if a rookie receives an enormous amount of guaranteed money in the form of signing bonus and does not produce on the field, it’s even worse. That money goes completely out of the system. It is with a player not producing anything on the field.

Veterans like Kevin Mawae (NFLPA president) recognize this and have stated so publicly. It’s the same problem that exists with players that breach their contracts and are able to keep bonus money — like Michael Vick. The money goes out of the system instead of being available to be paid to top, proven veterans. The term used by clubs to refer to guaranteed money paid to players that have washed out or don’t produce is “dead money.” That money is not available to pay to players that are actually contributing. It’s money that is not doing anything to contribute to the quality of the game. Bottom line — rookie contracts need to be reworked.

Source: NFL Media