Salary Cap: A Quick Guide to the Rookie Wage Scale

by Paul "Closer" Wanecski and Mario "Game" Granata

With the NFL draft fast approaching, it is no mystery that money does talk, but so does draft position.  To give a real brief overview on a complicated system, we are going to give you the Weekend Warrior version of how rookie contracts are handled in the NFL and how all this impacts the way teams go about players. Just to make sure everyone is aware, regardless of round, every player drafted is given a 4 year contract. Depending on where a player is drafted will impact his base salary, first and foremost. In some cases, an option year can be added, but the stipulation is that they player must have been selected in the first round.

The First Round is divided into two segments:
-Top 10 selections
-Rest of first round selections 11-32

Top 10 Picks - Top 10 Selections are given a 4 year contract with a 5th year team option, which teams must exercise before that start of the players 4th year. This option allows the team to extend the contract of a player one additional year without the need to transition or franchise tag him. If that option is picked up, the player is paid the average of the top 10 players at his position. 

For example, a player like Ryan Tannehill, who was selected 8th in the 2012 draft, IF the Dolphins were to pick up his 5th year option, and not resign him or restructure his deal, it would have to happen before this season (his 4th year of his contract).  More importantly, from a financial standpoint, Tannehill would be paid the average of the Top 10 players at his position, or approx. 15 million dollars.

Picks 11-32 - The remaining players selected in the first round have a similar option. The exception is that the 5th year team option pays significantly less. The option year pays them the average salary of the 3rd-25th highest-paid players at their respective positions.

For example, EJ Manuel, who was drafted 16th in the 2013 draft, IF the Bills were to pick up his 5th year option, and not resign or restructure his deal, it would have to happen before the 2016 season (the 4th of his contract).  More importantly, from a financial standpoint, Manuel would be paid the average of the 3rd-25th highest-paid players at his position, or 12.5 million dollars. 

Why is this important? Well, you will see a lot of jostling at the bottom part of the 1st round as teams try and navigate for that extra year of control. For a position like Quarterback, an affordable year financially in an option may be worth the cost to trade up if that player turns into a Franchise Quarterback (see Russell Wilson, as he is given the base 4 year contract as he was selected in the 3rd round and Seattle has no team option to exercise versus Ryan Tannehill who would be paid the average of the top 10 Quarterbacks in the league).

The difference is glaring. May other factors come into play with bonuses, team’s total cap estimates, 1st year compensation pools that all have an impact on the financials at play with a team’s entire draft class, however, this should give you the basics for how this works. Enjoy!
 
Hashtag Sports will be giving you a glimpse of all 32 NFL teams by their draft order.

2015 NFL Draft Order (by record):

1.     Tampa Bay Buccaneers
2.     Tennessee Titans
3.     Jacksonville Jaguars
4.     Oakland Raiders
5.     Washington Redskins
6.     New York Jets
7.     Chicago Bears
8.     Atlanta Falcons
9.     New York Giants
10.  St. Louis Rams
11.  Minnesota Vikings
12.  Cleveland Browns
13.  New Orleans Saints
14.  Miami Dolphins
15.  San Francisco 49ers
16.  Houston Texans
17.  San Diego Chargers
18.  Kansas City Chiefs
19.  Buffalo Bills*
20.  Philadelphia Eagles
21.  Cincinnati Bengals
22.  Pittsburgh Steelers
23.  Detroit Lions
24.  Arizona Cardinals
25.  Carolina Panthers
26.  Baltimore Ravens
27.  Dallas Cowboys
28.  Denver Broncos
29.  Indianapolis Colts
30.  Green Bay Packers
31.  Seattle Seahawks
32.  New England Patriots

*Cleveland Browns own the 19th pick from the Buffalo Bills