NFL Proposes Plan to Divert $300 Million From First-Round Picks to Veterans, Benefits


April 13, 2011

NEW YORK — The NFL's proposal to the players for a rookie compensation system would divert about $300 million a year from first-round draft picks' contracts to veterans and player benefits.

More than $525 million went to first-rounders in guaranteed payments in 2010. So nearly half of that total would wind up as veterans' salary or benefits under the proposal, according to documents obtained by The Associated Press.

The league's offer would free more than $1.2 billion by 2016 and slow the growth rate of guaranteed payments to first-rounders, which the documents show increased by 233 percent since 2000. All contracts for first-round picks would become fixed at five years.

Such quarterback busts as JaMarcus Russell ($32 million), Matt Leinart ($12.9 million), David Carr ($15 million) and Joey Harrington ($13.9 million) received huge guaranteed payments that totaled $367 million in the last 10 drafts.

Of course, Eli Manning ($24 million), Philip Rivers ($17.9 million) and Matt Ryan ($34.7 million) have not done too badly for their teams.

Guaranteed money paid to top 10 selections since 2000 reached nearly $2 billion. Guaranteed payments for all first-rounders were at $3.5 billion.

During talks for a new collective bargaining agreement, the league also proposed eliminating holdouts by reducing the maximum allowable salary if a rookie isn't signed when training camp begins. The NFL also suggested eliminating holdouts for all veterans by prohibiting renegotiations of contracts if a player holds out in the preseason.

The compensation system would not include a rookie wage scale and would allow for individual contract negotiations. Contracts would have a fixed length of four years for players chosen in the second through seventh rounds and would not affect salaries for those rounds, the league said.

The league and the NFLPA were not immediately available for comment.

Several agents said the proposals place unfair limitations on players entering the league.

"Five years and reduced pay is basically restricting players," said Ben Dogra, whose clients include Patrick Willis and Sam Bradford. "Roughly 68 percent of the NFL is comprised of players with five years or less of NFL experience.

"Even players from essentially picks 11 to 32 in the first round are good financial deals for the teams. If a player becomes a starter or an integral part of the team under the current system, the NFL teams have the player under a rookie deal that is favorable to the team."

Peter Schaffer, who represents Joshua Cribbs and Hakeem Nicks, called such a system "scouting insurance" for teams making bad selections high in the draft.

"It also makes the rookies more valuable when you reduce the amount you are paying to the young guy," Schaffer said. "This will eliminate the veteran middle class because teams can have younger players who are making less and are under fixed contracts."

A modified salary system for rookies was a negotiating point for a new CBA until talks broke off March 11 and the NFLPA dissolved as a union. The owners locked out the players hours later.

The two sides are scheduled for court-mandated mediation in Minneapolis beginning Thursday.

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