The Football Educator recently addressed the elimination of option bonuses in rookie contracts and the effect this had on the upper selections of the first round in the annual NFL Draft.  Option & roster bonuses provided loopholes to circumnavigate rookie pool restrictions on NFL Clubs as they signed their rookie class under the NFL Salary Cap for a given season.  Contracts were constructed with nominal year one costs to abide by rookie pool limitations, but second year option/roster bonuses protected by various non-exercise fees/guarantees ballooned these deals into the top echelons of positional groups.  Linebackers who had never played a snap suddenly were compensated with the best of the best at the position.  Wide receivers with nary a reception to their credit were financially rewarded on par with Pro Bowl veterans.  Quarterbacks charged with reversing the fortunes of losing franchises, and yet not a single victory under their belt, were signing top 10 contracts.

Predicting the need 

But it’s not as if both the League and Union didn’t see this coming even with earlier versions of the Collective Bargaining Agreement.  Measures were implemented in an effort to control escalating compensation over the life of a rookie contract.  There was enough foresight to predict player agents would look for loopholes around rookie pool restrictions and the thought was to cap yearly increases after the first season to guard against huge salary escalation.  That came in the form of the 25% Increase Rule.

25% Increase Rule – The CBA definition

No Rookie Contract may provide for an annual increase of more than 25% of the player’s Year-One Rookie Salary unless such contract provides only for Paragraph 5 Salary equal to the then-applicable Minimum Active/ Inactive Salary for each League Year of the Contract. By way of example, if a player drafted in the second round signs a four-year contract with a $400,000 signing bonus, a $500,000 Paragraph 5 Salary, and no performance incentives in his first season, the player’s Year-One Rookie Salary will equal $600,000, i.e., the prorated portion of his signing bonus ($100,000) plus his Paragraph 5 Salary ($500,000). Accordingly, the player’s maximum annual increase in Rookie Salary may not exceed $150,000 ($600,000 × 25%).

This total in increase accounts for NFL Salary Cap charge and not necessarily the cash value of the compensation for any given year.  That is an increase can be limited to 25% on the total NFL Salary Cap charge (guaranteed & likely to be earned), but cash reimbursement can well exceed that percentage for any given season.  So in essence the 25% Increase Rule was somewhat limiting under the old CBA, but not much more than cosmetically when coupled with bonuses.

25% Increase Rule – Stafford’s example

In 2009 the Detroit Lions selected Georgia QB Matthew Stafford with the first overall selection of the NFL Draft.  Stafford signed a 6 year, $72 million dollar rookie contract that averaged $12 million per season (pre-escalators).

Considering Detroit’s 2009 rookie pool allocation and the selection of Stafford #1 in the 1^st round, the $3.1M base was the most the Lions could guarantee in year 1 and stay within the limits of the rookie pool.  So calculate the following;

• 2009 – $3.1M X .25 = $775,000 (no subsequent season after year 1 can increase by more)
• 2010 – $395,000 + ($17,400,000/5 yrs = $3,480,000) = $3,875,000
• 2011 – ($9M of which $1.17M is guaranteed) + ($3,480,000 2^nd yr proration of OB) = $4,650,000
• 2012 – ($10,500,000 of which $1.945M is guaranteed) + ($3,480,000 3^rd yr proration of OB) = $5,425,000
• 2013 – ($11,500,000 of which $2.72M is guaranteed) + ($3,480,000 4^th yr proration of OB) = $6,200,000

25% Increase Rule – Doing the math

It may or may not be evident how Stafford’s agent (Tom Condon) was able to get around the rule, but in a sense the Lions & Stafford maxed out 2009 to comply with the rookie pool in year 1, took the minimum salary for a 2^nd year player in 2010 (guaranteed) and created a guaranteed option bonus that would prorate to fill in the remainder of a 25% increase over $3.1M from 2009.  Then they guaranteed just enough P5 (Base Salary) to cover the annual allowable increase over the following years.  The remainder of the salaries, incentives, and escalators hinged on easy to reach qualifiers that would all but guarantee these amounts later, but not initially for 25% Increase Rule accounting purposes.

The newer version of the CBA & the 25% Increase Rule has changed very little.  However all incentives must now be accounted for in the overall number.  Rookie contracts no longer have “Not Likely To Be Earned Incentives”, meaning incentives not immediately figured into the Cap number of a player.

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The National Football League has gone through extensive changes over the past few seasons (on and off the field).  The League’s front office and Competition Committee have taken progressive steps toward the safety of NFL players with extensive rule changes applied to techniques long thought to be just “part of the game”.

The extension of the Collective Bargaining Agreement ensured measures to guard the health and welfare of the NFL’s pioneer players.  Concussions and their ramifications on the well being of past, current, and future NFL players, are now being studied in hopes of both treating their negative effects and developing preventative measures against neurological brain disorders.  Training camp rosters opened up to 90 players and Clubs can now designate early June 1 release intentions allowing for cap casualties to seek employment before actually hitting the books.

Reforming rookie contracts

But perhaps the most significant result was the reform of rookie contracts.  Loop holes in contract structuring and the increase in overall revenue literally sky rocketed the top 10 of the draft into top 10 salaries without ever having taken a professional snap from scrimmage.  Clubs were reluctant to trade up for fear of the consequences of signing a mega-deal first round bust.  Poor teams were forced to spend top dollar on unproven talent and then cross their fingers they weren’t adding to their already losing ways.  The new CBA all but changed that and provided more of a slotted type system that most NFL Clubs, fans, media, and veteran NFL players can now live with.

In the years prior to the most recent CBA extension NFL Clubs were limited by a “Rookie Pool” that attempted to cap the amount all rookie contracts would allocate towards the overall Team Cap expenditure for the given season.  It was originally thought that this would curb inflated deals and overspending, but agents found a way around the rookie pool with “Option and Roster Bonus” clauses in the second year of the upper echelon rookie deals.  These were protected by guarantees should the “Option Bonus” not be exercised.

There was really no way around it.

Closing the loophole in rookie contracts

The League and the Players’ Union put a stop to the loopholes by legislating rookie contract structure.  It was something long overdue and readily welcomed by NFL General Managers in dealing with rookie negotiations.

• 1^st round deals could extend with an option to 5 years*
• 2^nd through 7^th were limited to 4 years
• College Free Agents are set at 3 years

*A Club has the unilateral right to extend from four years to five years the term of any Rookie Contract of a player selected in the first round of the Draft (the “Fifth-Year Option”). To do so, the Club must give written notice to

the player after the final regular season game of the player’s third season but prior to May 3 of the following League Year (i.e., year four of the contract). 

For a Drafted Rookie selected with one of the first ten overall picks in the Draft, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal the Transition Tender that applies in the League Year that is the fourth year of Rookie Contracts for players at the same position at which the Rookie participated in the most plays during his third League Year. No other Salary is permitted for the Fifth-Year Option.

For any other Drafted Rookie selected in round one, the Paragraph 5 Salary for the player’s Fifth-Year Option shall equal an amount that would apply in the fourth League Year of Rookie Contracts if one calculated the Transition Tender for that League Year by using … the applicable third through twenty-fifth highest Salaries for players at the position at which the Rookie participated in the most plays during his third League Year.

The entire Paragraph 5 Salary for the Fifth-Year Option shall be guaranteed for injury-related termination only, effective upon the Club’s exercise of the Option.

Breaking down allowable salary in rookie contracts

Rookie salaries are only allowed to include;

1. Traditional signing bonus, defined as signing bonus committed to players by the Club upon execution of rookie contracts.
2. Offseason workout bonus
3. Paragraph 5 Salary
4. Paragraph 5 Salary guarantees
5. Permitted performance incentives
6. Roster bonus
7. Reporting bonus

Notice anything missing?  Option Bonuses, at least in the old way of doing 1^st round rookie contracts.  Straight from the CBA;

Prohibited Terms. The following contract provisions are prohibited in a Rookie Contract: option bonuses, option exercise fees, option nonexercise fees, Salary advances, voidable year(s) provisions, buybacks of voidable year(s) provisions, and any “contract within the contract” (i.e., terms and conditions of a contemplated superseding contract within the Rookie Contract).

The Option Bonus is no longer a loop hole in rookie contracts and with that, trying to figure out how sign a top 10 pick isn’t “just part of the game”.

More on rookie contracts to come.

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The 2013 NFL Draft was historic from an offensive tackle perspective.  There have been years where two or three tackles were selected in the Top 10 of the first round (most recently in 2009), but perimeter OL’s at picks one, two, and four is unheard of.  Traditionally this stratus is usually reserved for the “skilled” of the college player pool; quarterbacks, defensive corners, wide receivers.

Sign of the times?

A recent national post suggested this may be a new sign of times.

“The game is changing. It has changed in the past 10 years, last five years, and in the past two years,” Kansas City Chiefs GM John Dorsey said. “You have to roll with it and make a decision that best fits your team.”  Traditionally, teams have used premium picks on left tackles because of their athleticism and their blindside protection of quarterbacks.   Right tackles were considered less important and less athletic. Those road-grading days may be over. Teams are burying the old thinking about right tackles and adjusting as the game becomes faster and more athletic. 

Gary Horton of Scouts Inc. didn’t blink when the Chiefs took Fisher to make him a right tackle, at least for the time being. Teams are using more spread offenses and are moving toward a faster-paced passing game — hence the need for more athletic players on the offensive line.  “These days with the way offense is going, you see more and more offenses wanting two athletic, bookend tackles that can push outside and block on the run,” Horton said.  “I was really impressed by what the Chiefs did. I really like the Albert-Fisher combination.” 

Not so fast.

Dancing Bears

Truth be told, NFL front offices have always coveted athleticism on BOTH sides of the offensive line.  The entering player pool hasn’t been able to produce that level of talent to accommodate two “elite athletes” at OT for all 32 teams.  Furthermore divvying up the CASH & CAP pie hasn’t allowed for Clubs to maintain two on the roster.  So NFL offensive coordinators modify with size/strength to a quarterback’s front side (demanding a cheaper price), while guarding his backside with the more nimble footed player (at a higher price).  Hope was, at least in theory, that the athletic OT could counter the same from the blindside rush, while the QB would handle any pressure in his line of sight with his own pocket movement.  Land two “dancing bears” and you were simply downright lucky.

The new CBA has made a Top 10 investment at ANY position more palatable.  Consider the 2010 NFL Draft (the last prior to the new CBA extension).  The first OT selected was Trent Williams at #4.  His 3 year cash average over his ROOKIE contract was a whopping $10.9M and currently places him as the 2nd highest paid at the position in the entire NFL.  Flash forward to Eric Fisher.  The Chief’s new “right” OT, the number one pick in the 2013 NFL Draft, will average $6.25M over the same 3 years.  That equates to 20^th at the offensive tackle position.

What the Chiefs have done is placed themselves atop the League with the highest average salary of both their bookends, Branden Albert being 3^rd overall with his Franchise tag of $9.828M.  The Eagles are in a similar situation with Jason Peters and Lane Johnson; as is Cincinnati, Jacksonville, Tennessee, San Francisco, and Minnesota.  And just what might that be?  Both left and right tackles in the top 32 average salaries at the position.  But that leaves 25 clubs outside those parameters, and the disparity is usually massive.

The real question is what will the Chiefs do if and when they lose Branden Albert?  Will they use that same cash to resign a replacement right OT (assuming Fisher moves to left) with the equivalent skills?  Will they even have the opportunity through the draft or free agency to go after the kind of talent that garners such a contract?  Probably not.

A lot left to prove

If the game is truly changing and no delineation is made between left and right offensive tackles, then the agents will quickly figure this out and begin to demand equal contract opportunity regardless of play side.  Where will that cash come from; running backs, linebackers, defensive tackles?

I contend that one of the only ways to make the Chiefs plan work (or Philadelphia & Jacksonville’s) is by landing one of your two “elite” tackles in the Top 10 of the Draft, riding out the remaining few years of the vet OT’s contract, and replacing him with an extension to your Top 10 pick.  Then best of luck finding an equally talented “left” right offensive tackle without losing 10 to 12 games in order to earn you (or perhaps your replacement) another selection in the Top 10.

The real test to this new theory of “blurred lines” between left and right offensive tackles is whether Clubs are willing to spend the type money to acquire 2 elite level OT’s entirely through free agency.  Then and only then will we see if “the League is going that way”.

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So perhaps we learned a few things with the last few posts on Player Cost Amounts and Player Benefits that we didn’t realize were the responsibility of NFL ownerships.  Quite a bit of the NFL owners’ revenues go into the various programs set aside for past veteran players, and for continuing research on concussion and head trauma. Money is poured into the funding of new stadium efforts and to ensure careers cut short by injury aren’t just swept under the rug.

Money Buckets

But make no mistake; the NFL is about maximizing revenue opportunity.  Despite only 16 regular season games and 4 weeks of playoffs, the National Football League is the “Goliath” of professional sports in generating income.  This last CBA extension was all about the NFLPA ensuring that the players (who at times play the role of “David”) got their fair share of the money buckets.

With so much on the line for both the NFL’s owners and the NFL Players’ Union, who decides how large the cash pie actually is?  Is it the legal arm of the NFL through Management Council, or is it the long arm of the lawyers that fill up the Union?  The answer is really both and neither.

The Purpose of the Special Purpose Letter

It’s a shared responsibility that is delegated to an independent accounting firm approved by both sides.  This firm is tasked with reporting the AR (All Revenues), Player Cost Amount, Team Salary, Cash Spending, and Benefits of each Club and the NFL for that League Year, utilizing information reported by independent Club and League accounting firms, and information obtained by the Accountants through its review procedures.

Both the League and the Union share the cost of the services of the accounting firm, and both must agree upon the annual reports submitted by the Clubs and the League to the firm for review (year end March 31).  This information will culminate in a “Special Purpose Letter(s)” used to determine the annual Salary Cap and League-wide cash spending requirements.

NFLPA to NFL; “We trust you but…”

This system is effectively set up to ensure accuracy on both sides and to provide opportunity for adjustments should errors be found in the reported revenue and spending (real and estimated).

Other mandatory duties include;

• Reviewing the “reasonableness” of any Club estimate of revenues versus actual amounts received, then adjusting accordingly.
• Access to and the review of local accountant workpapers and or financial audit documents.
• Access to any contracts or documents between the League, Club(s), or Club affiliate and any third party revenue source.
• The requirement to notify the League/Union prior to submitting the Special Purpose Letter with questions regarding revenues and or adjustments.
• The responsibility of resolving any disputes between the NFL and the NFLPA regarding any adjustments made.  *Note – the NFL or the NFLPA has the right to seek arbitration if adjustments in aggregate are $5M or more.  If between $5M & $10M then a hearing to decision must be reached within one day, or otherwise agreed to continue on a day to day basis.  Either side that doesn’t prevail in the hearing is responsible for handling the expenses of the other in the proceeding.  This rule doesn’t apply for disputes of $10M or more.

Even after the issuance of the Special Purpose Letter, the Union has a right to an individual audit of the findings using their own auditor.  The NFL conversely has the right to send a representative to “observe” any procedures undertaken by the NFLPA’s auditor on site.  These Union’s auditor must make “best efforts” to complete their work within 60 days prior to the next scheduled Final Special Purpose Letter.

Confidentiality and a “need to know”

Guess the fans and media don’t have a “need to know”. 

Within the CBA are extensive guidelines as to the confidentiality of the information obtained and decisions made by the Union’s auditor.  The release of such information is highly restricted and should the Union’s auditor determine violations were indeed made in developing the original Special Purpose Letter under the agreement of the CBA, the Union has four business days to notify the League of any further proceedings and to advise the League of the alleged violation.  Both sides, but specifically the NFL, went to great lengths to keep this information from being used as media leverage in efforts to settle the dispute.

Perhaps nothing here is of surprise to those NFL fans wise in the ways of the cantankerous relationship between unions and management.  After all, we see this type of news almost on a daily basis; teachers unions, automotive unions, public workers.  But hardcore NFL fans don’t seem to care too much about the behind the scenes “head banging”.  They just expect EVERYONE to show up on Sunday; Special Purpose Letter or not.

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For those of you that regularly visit The Football Educator you’ve probably noticed a series of 9 somewhat “mundane” posts dealing with the various inputs into and definitions of Player Cost Amounts and Player Benefits.

These are the two primary contributors into calculating the annual NFL Salary Cap as legislated by the recent extension of the Collective Bargaining Agreement between the League (NFL) and the Players’ Union (NFLPA).  I saw a necessity to break this down in order to fully understand where revenues come from in professional football and where they are quickly sent.

Getting to the Salary Cap equation

Some fans that I’ve exchanged tweets and emails within the past have a somewhat contorted notion of the availability of resources for NFL owners to go out and sign new free agent players when the need might arise.  The answer to a hole at left offensive tackle or right cornerback is to wait for the TV checks to arrive in the mail and then go spend, spend, spend.

Sure, the Salary Cap is put in place to curb the otherwise overzealous coaches, GM’s, and at times owners from trying to BUY a Super Bowl Championship.  But CAP dollars don’t equal CASH dollars under this system.  An NFL club can hoard all the CAP dollars it wants (up to a certain extent under minimum spending rules) but it won’t buy them the next Peyton Manning on the market.

In the National Football League CASH is king and there are other obligations that NFL owners have with their cash that must be attended to.  Some of these are public, as stated in the financial responsibilities of Player Costs and Player Benefits.  But many are private and not shared openly with the general public and or the media.

It’s hard to imagine doling out close to a billion dollars to buy an NFL club and then not wanting to jump in the competitive fray of chasing a Super Bowl Championship, but do you honestly think that every club has the WILL to invest in a similar manner that some of the perennial playoff contenders do?  I think not.

So keep in mind that NFL owners do have to spend a reasonable amount (89% of the CAP as legislated by the CBA) to put together their rosters, but they’re also asked to cover a number of personal obligations (both seen and unseen) that CAP dollars just can’t buy.

Below is a quick review of the simple equation that leads to the annual Salary Cap.  Player Costs and Player Benefits are linked to the applicable posts that attempt to define a few of the details regarding the components that make up each of the two categories.  Mundane? Yes.  Essential to understand?  Yes.

A simplified equation;

Player Cost Amounts – Player Benefits / 32 NFL Clubs  = NFL Team Salary Cap

Player Cost Amounts 

• NFL Salary Cap – Calculating Player Costs
• NFL Salary Cap – Getting a little “Stadium Credit” for the effort
• NFL Salary Cap – The effects of the “Tuck Rule” & “Pouring Rights”

Player Benefits

• NFL Salary Cap – Counting on Player Benefits
• NFL Salary Cap – More Counting on Player Benefits
• NFL Salary Cap – Even More Counting on Player Benefits
• NFL Salary Cap – Performance-Based Pay within Player Benefits
• NFL Salary Cap – 3 More Progressive Player Benefits
• NFL Salary Cap – Closing out Player Benefits; the final 3

A few more details still need to be addressed in our next post to clean up the Salary Cap calculation.  Then we can move on to more exciting issues – spending the money.

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The Football Educator looks at the final 3 Player Benefits as they relate to the overall total used in the equation to calculate the annual NFL Salary Cap.  The following is paraphrased from the Collective Bargaining Agreement.

Player Benefits – The Rookie Redistribution Fund

In each League Year of this Agreement, the NFL and the NFLPA shall create a fund known as the Rookie Redistribution Fund that will be treated in the same manner as any other Player Benefit Cost.  The maximum amount of this Fund shall be;

• $25 million for the 2012 League Year
• $50 million for the 2013 League Year
• $100 million for the 2014 League Year

The maximum amount of the Fund shall increase in each subsequent League Year by the annual rate of growth of the Year-One Rookie Compensation Pool. The total amount of the Fund shall be distributed in a proportion to be determined by the NFLPA:

• To offset against the portion of the Legacy Benefit that is allocated as a Player Benefit Cost in such League Year
• To fund a Veteran Player performance-based compensation pool as agreed upon by the parties
• For any other new Benefit for current or retired players as agreed upon by the parties

Set forth in the table below are examples of the effect that various distributions would have upon the calculation of the Salary Cap under a hypothetical Player Cost Amount of $145 million assuming (i)the maximum Fund amount equals $25 million; and (ii) that projected Player Benefit Costs other than the Fund equal $23 million per Club:

Player Benefits – The Legacy Benefit

Effective August 4, 2011, the NFL established a benefit known as the “Legacy Benefit.” The Legacy Benefit is provided from the Retirement Plan to vested players who had Credited Seasons prior to 1993.

The NFL and the NFLPA jointly determined the amount of the additional benefit to be provided under the Legacy Benefit and to whom it is provided.

The NFL and its Clubs make an aggregate contribution of approximately $620 million to the Legacy Benefit over the term of the CBA, 49% of which counts as a Player Benefit Cost.

Player Benefits – The Neuro-Cognitive Disability Benefit

The Plan provides a benefit for those eligible Players who have a permanent, neuro-cognitive impairment but are not receiving Line of Duty or Total & Permanent Benefits under the Disability Plan or Pension Benefits under the Retirement Plan.

The medical standards for qualifying for this benefit are by a Special Committee made up of three healthcare professionals with expertise in neuro-cognitive disorders.

One healthcare professional shall be selected by the NFLPA, one healthcare professional shall be selected by the NFL’s Management Council, and a third healthcare professional by the other two healthcare professionals. The Special Committee recommended standards to qualify for the two benefits. In making its recommendations, the Special Committee considered whether, and if so to what extent, evidence of behavior could be utilized in setting appropriate standards. Applicants aren’t required to establish that the neuro-cognitive impairment arose out of football.

Players shall be eligible for benefits;

• Under the age of 55;
• Vested under the Retirement Plan due to their Credited Seasons;
• Have at least one Credited Season after 1994; and
• Have executed a release of claims and covenants not to sue in a form agreed upon by NFL & the NFLPA.

A player’s right to receive benefits shall be contingent on the player’s agreement to and execution of the release and covenant not to sue referenced above. The NFL & NFLPA acknowledge and agree that the provision of the benefit shall not be construed as an admission or concession that NFL football caused or causes, in whole or in part, the medical conditions covered by the benefit, or as an admission of liability or wrongdoing, and the NFL expressly deny any such admission, concession, liability or wrongdoing.

Players who satisfy the standards shall be entitled to the following neuro-cognitive disability benefits which shall be payable for no more than 180 months beginning on the first day of the month following a qualifying exam; provided, however, no monthly neuro-cognitive benefits will be paid for any month after the month in which the player’s 55th birthday occurs:

• Moderately Impaired Benefit. Players who qualify shall receive a monthly benefit equal to the sum of the Player’s Benefit Credits, but no less than $3,000 (which such amount shall be increased in $500 increments every other year, beginning in 2013).

• Mildly Impaired Benefit. Players who qualify shall receive a monthly benefit equal to 50% of the sum of a Player’s Benefit Credits, but no less than $1,500 (which such amount shall be increased in $375 increments every other year, beginning in 2013).

Special Committee:  Recognizing advancements in neuro-cognitive testing and evaluation are occurring at a rapid pace, a special committee, the members of which shall be chosen in the same manner set forth above, shall review the Plan’s standards every 2 years to determine if changes should be recommended.

Note – The 2015 League Year will establish another Player Benefit – The Long-Term Care Insurance Program.  This however doesn’t have  a current effect on the NFL Player Benefits total, and therefore on the calculation of the current Salary Cap.

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Memorial Day is a United States federal holiday which occurs every year on the final Monday of May.  Memorial Day is a day of remembering the men and women who died while serving in the United States Armed Forces.   Formerly known as Decoration Day, it originated after the American Civil War to commemorate the Union and Confederate soldiers who died in the Civil War. By the 20th century, Memorial Day had been extended to honor all Americans who have died while in the military service. It typically marks the start of the summer vacation season, while Labor Day marks its end.

Many of The Football Educator’s readers might know that I’m an Air Force Academy graduate, Class of 1984.  Most of my time as a commissioned Air Force officer was spent coaching football back at my Alma mater.  But I did have the honor to be stationed in Berlin, Germany during the Cold War as a Signals Intelligence Officer with the 6912 ESG from 1986-1988.  My family wasn’t one of former military servicemen.  In fact it was the chance to play Division IA football that led me to the Air Force Academy, and thus it was football that introduced me to the military.

Over the years I’ve had classmates, friends, and even athletes that I had the pleasure to coach, pass away as a result of their service to our country.  They are gone, but truly not forgotten.

The meaning of Memorial Day

I want to introduce you to Marine Cpl. David M. Sonka of Parker, Colorado.  (Parker is where I live today).  Sonka attended Chaparral High School and was a wrestling and track athlete for the Wolverines.   I’m sure like most young men brought up in Colorado he had a love for the outdoors and was a fan of the Denver Broncos.

He became a multi-purpose canine handler and after joining the Marine Corps in August 2008, moved into the Special Operations Command in 2012.  He attended Military Police School in Ft. Leonard Wood, Missouri, and upon graduation attended the Military Working Dog Handler Basic Course at Lackland Air Force Base, Texas.  Sonka’s personal decorations include a Navy and Marine Corps Achievement Medal, Marine Corps Good Conduct Medal and a Combat Action Ribbon.

On May 4, 2013, Sonka and his K-9 partner “Flex”, along with Staff Sgt. Eric Christian of Warwick, New York were killed during combat operations in Afghanistan’s Farah province.  Sonka’s death was the result of an “insider” attack and “Flex” was killed while attempting to save his handler.  David Sonka was just 23 years old.

This Memorial Day I ask that you take a moment to remember a friend or family member that made the ultimate sacrifice so that we might enjoy the freedoms we have today.  If you don’t have any fallen friends or family members, then take a moment to remember David Sonka and “Flex”.  As both Americans and NFL football fans we owe them a great deal of gratitude on this Memorial Day 2013.

Marine Cpl. David M. Sonka of Parker, Colorado, may be gone, but he is truly not forgotten.

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Let’s continue the Player Benefits list.  Player Benefits are subtracted directly from Player Cost Amounts to get to the annual Salary Cap number for each NFL Club.  Only until we reach that level of understanding can we move forward with specifically how NFL GM’s maneuver and manage the financial constraints placed upon building an annual NFL roster.

The Tuition Assistance Plan

The League and the Player’s Union have gone out of their way to ensure that funds from the NFL go directly towards the ongoing education or completion of a college degree by eligible NFL players.  Bottom line, there’s no excuse not to take full advantage of this generous opportunity.

As paraphrased from the CBA;

The Tuition Assistance Plan will provide up to $15,000 per League Year ($20,000 for the 2015–2020) as reimbursement for tuition, fees, and books to any player who earns an average of “C” or better per semester at an eligible educational institution.

• To be eligible for reimbursement, fees must be associated with the course or courses taken, and no more than $400 in fees will be reimbursed for any semester.

• To be eligible for reimbursement, the player must have earned at least one Credited Season prior to the beginning of an academic year and be on the Active, Inactive, or Reserve/Injured roster for the first game of the NFL regular season for reimbursement for the Fall semester during that NFL season, or

• Be on the Active, Inactive, or Reserve/Injured roster for the last game of the NFL regular season for reimbursement for any other semester during that academic year.

A player not eligible for benefits but has at least one Credited Season after 2005, and has at least five Credited Seasons under the NFL Player Retirement Plan, shall be eligible to be reimbursed for up to $45,000 (up to $60,000 in the 2015–2020) of his expenses for qualifying tuition, fees and books, provided they’re incurred within 48 months of the first day of the League Year immediately following the player’s last regular or post season game.

A player who just completed his first Credited Season will be eligible to be reimbursed for a course that begins after his Club’s final game of that season and prior to the next following season provided:

• On the day the course begins, the player is under contract with a Club;

• And if any portion of the course is taught after the start of his Club’s offseason workout program, that the player does not have to travel more than 100 miles from that Club’s main practice facility to take the course.

An eligible player will be reimbursed no more than seventy five days after the player submits a certified transcript from the eligible educational institution for that semester, and receipts demonstrating payment for tuition, fees, or books.

The Gene Upshaw NFL Players Health Reimbursement Account

The NFL and the Players’ Union will jointly administer the Gene Upshaw NFL Player Health Reimbursement Account Plan in a manner similar to the NFL Player Second Career Savings Plan.

For each of the Plan Years a contribution will be made on behalf of the NFL Clubs.

All such contributions will be held for the exclusive benefit of Participants and their beneficiaries, and under no circumstances will any assets of the Plan ever revert to, or be used by, a Club, the League, or the NFLPA.

The 88 Benefit 

*Named for former Baltimore Colts great TE John Mackey #88

The NFL and the Players’ Union established the “88 Plan,” to provide medical benefits to former Players who are vested due to their Credited Seasons or their total and permanent disability under the NFL Player Retirement Plan, and determined to have “dementia,” amyotrophic lateral sclerosis (ALS), and/or Parkinson’s disease.

The Plan will reimburse, or pay for, certain costs upon the diagnosis made by a physician with experience in the field of treating dementia, ALS, and/or Parkinson’s disease.  In no event will the total payments exceed $100,000 in any year ($130,000 beginning in the 2016 League Year), but in no event will benefits be paid for any month or other period of time that precedes the date the 88 Board first receives a written application requesting the benefit, provided that such written application begins the administrative process that results in the award of the benefit. The costs to be paid for an eligible player include:

• For any month in which an eligible player was admitted as an in-patient at an eligible institution for all or part of the month, institutional custodial care, institutional charges, home custodial care provided by an unrelated third party, physician services, durable medical equipment, and prescription medication, up to 1/12 of $100,000 (1/12 of $130,000 beginning in the 2016 League Year); and

• For any month in which an eligible player was not admitted as an inpatient at an eligible institution for all or part of the month, home custodial care provided by an unrelated third party, physician services, durable medical equipment, and prescription medication, up to 1/12 of $88,000 (1/12 of $118,000 beginning in the 2016 League Year).

• The maximum benefit payable for any month shall be reduced, but not below zero, by the amount of any total and permanent disability benefits paid by the NFL Player Disability Plan. 

The care for and consideration of past players of the game of professional football was paramount for both sides over the last set of negotiations.  The popularity and profitability of the NFL continues to fund these vital programs for the games’ aging alumni.

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One of the local Tweeters here in Denver just recently shot over this question regarding Performance-Based Pay (PBP);

eyeondenver ‏@youreyeondenver15 May

“@Ted_Sundquist Wouldn’t mind some detail about bonus checks players rec after season based on CBA – how calculated, who’s eligible…”

Performance-Based Pay

Performance-Based Pay just happens to be the next item on the list of NFL Player Benefits that are deducted from Player Cost Amounts that lead to the annual Salary Cap number.  Performance Based Pay is another progressive move from an earlier extension of the Collective Bargaining Agreement (not the most recent) that rewards players for their on-field contributions above and beyond their base salary and any other allotted bonuses.  Essentially it provides for those players that may have outperformed their existing contract by extensive playtime.

Performance-Based Pay disappeared in 2011 after the lockout and subsequent extension of the CBA.  But it returned in 2012 and is administered as follows (paraphrased from the CBA);

The fund consisted of about $3.46 million per club in 2012 and is set to expand based upon Projected AR (All Revenues).  There’s a maximum of a 5% increase on an annual basis.

Eligibility

Eligibility is determined solely on playtime % and any player that has at least 1 play in a regular season game is qualified.  Each player’s percentage is determined by simply adding up all offensive or defensive, and special teams plays he participated in throughout an entire regular season, then dividing by the total offensive or defensive plays, plus special teams, to get the determined percentage number.

As defined by the CBA;

A play is counted towards playtime percentage if the play runs to completion, regardless if the play was nullified by a penalty (e.g., a play that is blown dead by a penalty, due to a false start or encroachment penalties, etc. do not count in this calculation). A play is defined by the personnel on the field. A fake punt or field goal is considered a Special Teams play, and a 2-point conversion attempt is considered an offensive/defensive play.

Calculating Performance-Based Pay

Performance-Based Pay Compensation is calculated by taking all of the full Paragraph 5 (P5 = base salary), prorated signing bonus for the season (plus any accelerated signing bonus due to release), earned incentives, and any other compensation earned in the given season.

Players under the Minimum Salary Benefit (Vet Mins) will be calculated under the P5 for a player with at least two Credited seasons and not the stated P5 amount.

Should some of a player’s P5 be treated as Signing Bonus (that is guaranteed) the full P5 amount will be used, rather than the current year’s proration.

An INDEX will be calculated by taking the player’s Playtime % and dividing it by his Compensation, and the amount ultimately rewarded to the player is as follows;

Each player shall receive an allocation from the fund determined by dividing his PBP Index by the sum of the PBP Indices for each player on the Club and then multiplying that percentage by the Club’s total PBP allocation.

Well worth the effort

Players have an opportunity to recalculate their individual Performance-Based Pay allocation, and if an error can be proven, the difference will be paid to the player and taken from the Club’s allocation for the following League Year’s pool.

The amount that comes from Performance-Based Pay to any one player isn’t staggering in relation to overall salaries that fans have become accustomed to hearing about, but it is one of the few compensation categories that are directly earned by play on the field.  I eagerly awaited this annual report in hopes that player’s that had worked their tails off, and not considered the “elite” of the roster, were fairly recognized for their efforts.  This was another highly progressive move in the growth and change of the CBA.

We’ve still got 7 more NFL Player Benefit categories to go, all very worthy of review.

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J.P. Fox is back to The Football Educator.  Here he presents his personal analysis of the Dallas Cowboys 2013 NFL Draft and which picks are most likely to project as difference makers in the coming season.

Draft observers all around the country had speculated that the Cowboys would go heavy rebuilding the offensive line and adding additional pieces to the defensive line. With Tony Romo constantly running for his life and a defense switching to a 4-3, the offensive and defensive lines seemed like a very popular choice for anybody that tried to predict what Dallas would do going into the draft. Also, with the Cowboys releasing veteran safety Gerald Sensabaugh and Barry Church coming off of an Achilles injury, safety was a position of need. When the draft ended and there were now seven new Cowboys, there were more than a few people who wouldn’t have been able to peg the players the team drafted.

Round 1 Pick 31:

Travis Frederick C/G Wisconsin

After trading down from 18, Dallas had two safeties on the board in Matt Elam from Florida and Jonathan Cyprien from Florida International. When the Cowboys picked Travis Frederick, it wasn’t a popular choice by many. Frederick, by some, was projected as a second or third day pick, never mind a first rounder. When looking at the pick, the Cowboys did address a need. They needed help along the offensive line. The only spot on the line that is set in stone is left tackle, Tyron Smith. Frederick is a versatile player who has experience playing guard and center for Wisconsin. The Cowboys have a hole at center after a revolving door at the position the last few years. It’s projected, as of now, that Frederick will open camp at right guard. The Cowboys got a starting player in Frederick.

Round 2 Pick 47:

Gavin Escobar TE San Diego State

In round two, Dallas went a route that again wasn’t seen by many. With future Hall of Famer Jason Witten manning the tight end position, the Cowboys’ selection of Gavin Escobar could be looked at with some confusion. But with Witten going into his eleventh season, the Cowboys do need to get younger at the position. This isn’t saying that Escobar is coming in to take Witten’s job. Witten had a career high 110 receptions this past season. But recently in the NFL, teams are going with two tight end sets more frequently. New England has the main example in Aaron Hernandez and Rob Gronkowski. With Escobar drawing comparisons to Jimmy Graham of the Saints, having an athletic tight end to run different formations will only help the Cowboys offense.

Round 3 Pick 74 (with pick acquired from SF) :

Terrance Williams WR Baylor

Here in round three, the Cowboys could have gone in many different directions. There were still quality defensive and offensive lineman on the board. Instead, Dallas selected Terrance Williams, the nation’s leading receiver this past season with 1,832 yards. Miles Austin has had problems staying healthy over the last few seasons. A string of hamstring and groin issues have held Austin out of the lineup. With Dez Bryant emerging as the teams’ number one wideout, Williams adds immediate insurance. He also adds another weapon for three-wide formations. If Austin continues to be banged up and Williams proves he can play, this could signal the end of Miles Austin in Dallas.

Round 3 Pick 80:

J.J. Wilcox S Georgia Southern

Wilcox has played three years on the offensive side of the ball as a running back and wide receiver. As a senior, he moved to safety where he registered 88 tackles and two interceptions. Wilcox plays with a tenacity and aggressive style that will be hard to keep off of the field. With uncertainty at the position, Wilcox may find himself on the field early and often.

Round 4 Pick 114:

B.W. Webb CB William & Mary

Webb does come a small school but his athletic ability is unquestioned. He has the perfect size and quickness to play a slot role on defense in nickel and dime situations. While he can contribute in certain packages on defense, Webb is a freak of nature on kick and punt returns. That will add to his chances of getting on the field.

Round 5 Pick 151:

Joseph Randle RB Oklahoma State

With the oft-injured DeMarco Murray as the starting running back and Felix Jones moving on in free agency, the Cowboys needed another running back to split carries with Murray and provide insurance in case of another injury. Randle had a very successful career for Oklahoma State’s spread offense but did run a ton between-the-tackles and catches the ball very well out of the backfield.

Round 6 Pick 185:

Devonte Holloman LB South Carolina

With their final pick, the Cowboys picked up an SEC linebacker-safety hybrid in Holloman. Without ideal height for linebacker or ideal athleticism for safety, Holloman will probably find himself competing for a special teams spot while trying to earn a backup job role somewhere on defense.

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