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Draft pick contract


hawk

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Is the contract based on when a player is selected or is it weighted by position?

If the Browns take a QB number 1, would he make more than say a RB?

Im pretty sure its based on when they are selected, regardless of position.  If not though, that could make a difference.

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7 hours ago, hawk said:

Is the contract based on when a player is selected or is it weighted by position?

If the Browns take a QB number 1, would he make more than say a RB?

Im pretty sure its based on when they are selected, regardless of position.  If not though, that could make a difference.

Looks life it is draft selection (not position played)

Jason Belzer, Forbes Contributor.

How Does NFL Rookie Compensation Work?

Compensation for 2016 NFL rookies is based on two different factors: the league's Salary Cap and its Rookie Compensation Pool. The NFL's salary cap (based on the terms negotiated during the 2011 collective bargaining agreement) is expected to be approximately $167 million in 2016 (an increase of 7% over 2016). The second, more significant factor, is the Rookie Compensation Pool which puts limitations on the total amount teams can spend on a rookie's first year salary and the total 4-year contract.

This year's league-wide pool is expected to be approximately $1.2 billion (with approximately $480m allocated to first round draft picks) and is split among all 32 NFL clubs in proportion to their total number of draft picks and the position of those picks within each round. Teams who choose earlier and/or have stockpiled picks will thus have a larger piece of the pool to draw from. While this season's salary cap has risen by more than $11 million over last year's, the actual signing bonuses for rookies are expected to stay approximately the same.

There is also an inherent difference between draftees picked within rounds 1-2 and those between 3-7. Early round draft picks (due in large part to the large  investments the teams are making) are much more likely to have their salaries guaranteed. Secondly, the NFL's collective bargaining agreement has a provision referred to as the "25% Increase Rule" which prohibits a rookie's base salary plus bonus from increasing by more than 25%  each year of their contract. This is why larger bonuses then allow for a significantly increased salaries in subsequent years as compared to later round picks.  The 4-year minimum base salaries for players in this year's draft are as follows: $465,000 (Year 1), $540,000 (Year 2), $615,000 (Year 3), $690,000 (Year 4).

If eventually signed to a contract, each rookie drafted will get a 4-year deal, whereas undrafted rookies are only eligible for 3-year contracts. Furthermore, first round players have exclusive fifth-year options in their contracts, versus players drafted between rounds 3 and 7 who are only eligible for a  proven performance escalator (PPE).  Fifth-year options allow teams to hold on to the rights of their first round draftees for an additional year, assuming that they inform the player that they are picking up said option between the off-season of their third and fourth contract years. Alternatively, the proven performance escalator allows players selected later in the draft to receive additional compensation assuming they participate in at least 35% of their team's defensive or offensive plays during the first 3 years of their deal. The league's collective bargaining agreement also bars teams from giving rookies option bonuses, option exercise/non-exercise fees, as well as voidable years and salary advances... all of which are available to veterans.

2017 NFL Draft 1st Round Rookie Salary Projections: (article is a year old) 

PICK - TEAM- PLAYER - TOTAL CONTRACT - SIGNING BONUS
1 - Browns - Myles Garrett     $30,427,372    $20,259,698
2 - Bears - Mitchell Trubisky     $29,047,426    $18,256,100
3 - 49ers - Solomon Thomas     $28,169,295     $18,617,459
4 - Jaguars - Leonard Fournette     $27,165,687    $17,887,563
5 - Titans - Corey Davis     $25,409,386    $16,610,253
6 - Jets - Jamal Adams     $22,273,147    $14,329,352

Jason Belzer is Founder of GAME, Inc. and a Professor of Organizational Behavior and Strategy at Rutgers University. Follow him on Twitter @JasonBelzer.

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