The decisions on fifth-year options are somewhat obscured 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 25-27 this year, when the window to pick up options is coming to a close. The window with 2021 first-round picks began Jan. 8, a day after the 2023 regular season ended. The options must be exercised no later than May 2.
The decision to pick up options is more complicated because the 2020 NFL Collective Bargaining Agreement 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 becomes 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 an 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 an 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 an 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 an 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…
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