The decisions on fifth-year options are overshadowed because of the timing. NFL teams typically don’t turn their attention to fifth-year options until the conclusion of the NFL Draft, which takes place April 27-29 this year, when the window to pick up options is coming to a close. The window with 2020 first-round picks began Jan. 9, a day after the 2022 regular season ended. The options must be exercised prior to May 3.
The decision to pick up options is more complicated because the new NFL Collective Bargaining Agreement has changed how fifth-year options operate. Beginning with 2018 first-round picks, the fifth-year salary is fully guaranteed when the option is exercised. A player’s fourth-year base salary will also become fully guaranteed at the time the option year is picked up if it wasn’t already.
Previously, the fifth year was guaranteed for injury upon exercise of the option. The option year became fully guaranteed on the first day of the league year in the fifth contract year.
The option-year salaries are no longer strictly tied to where a player was drafted (i.e.; top 10 or outside of top 10). Originally, the fifth-year salary for the top-10 picks was the transition tender (average of the 10 highest salaries) at a player’s position when the option was exercised. With players selected outside of the top 10 (picks 11-32), the fifth-year salary was the average of the third through 25th highest salaries at a player’s position.
Performance now dictates the option-year salaries. With two or more Pro Bowl selections on the original ballot during the first three seasons of contracts, the fifth-year salary is the franchise tender, which is the average of the five highest salaries for a player’s position in the fourth year of his contract. One Pro Bowl selection on the original ballot during the first three seasons of deals puts the fifth-year salary at the transition tender, which is average of the 10 highest salaries, for a player’s position in the fourth year of his contract.
Participating in 75% of offensive or defensive plays, whichever is applicable, in two of the first three seasons of deals or an average of at least 50% playtime in each of the first three seasons sets the fifth-year salary at the average of the third through 20th highest salaries at a player’s position. For first-round picks who don’t fall into any of these three categories, the fifth-year salary…
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