2011 Deal Summary of Main Terms (7/25/11)

Players Share of Revenues

All Revenues (AR) included in cap calculation with limited deductions as opposed to TR with significant deductions 1.5% Stadium Credit to encourage new stadiums and renovations resulting in significant increases in new revenues being included in AR
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Players Percentage of AR
Players share of Revenue calculated as follows: 55% of League Media (TV, Radio, etc.) 45% of NFL Ventures/Post-Season 40% of local Club revenues Upper Band of 48% (2012-14) & 48.5% (2015-20) Lower Band of 47%
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Players Percentage of AR
After applying the 1.5% Stadium Credit, Lower Band cannot be below 47%(2012-14), 46.5% (2015-16), 46% (2017-20) Guarantee of Cap amount being an average of 47% over the life of the Agreement True up to actual revenues each year
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Minimum Cash Spend Requirements

Guaranteed League-Wide Cash Spend of 99% of the Salary Cap in 2011-12 Guaranteed League-Wide Cash Spend of 95% of salary cap in 2013-16 and 2017-20 four year periods Minimum Team Cash Spend - 89% of salary cap in 2013-16 and 2017-20 on a four-year average
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2011 Cap - Transition

Salary Cap set at $120.375M with $22.025M in benefits for 2011 $3M in additional cap room per Club in 2011(at club option) by taking up to $1M off the cap charge for up to three players per Club with 5 or more Accrued Seasons (same rule for 2012, but for a total of $1.5M in extra room created from three players with a $500k in salary) No Performance Based Pay in 2011, with money instead devoted to cap room 6

2011 Cap Transition

90 player roster for 2011 preseason training camp

Schedule
Tuesday, July 26 Facilities open Trading begins 10 am EST clubs may sign all rookies; and negotiate with but not sign all other players

Schedule
Training camps open 15 days prior to the first game (July 27, 28, 29, 31) Thursday, July 28 at 4:01pm EST
Clubs may waive or terminate Player Contracts

Schedule
Friday, July 29 at 6:00 pm EST Renegotiate contracts Sign players but those players may not receive any contract payments and they will be prohibited from physical activity until a CBA is ratified Signed Rookies may participate and have protection if injured.
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Schedule
Thursday, August 4 League Year begins if the CBA is ratified (League Year could start earlier if CBA is ratified sooner) All clubs must be under the cap (Top 51 rule applies)

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2011 Cap - Transition

Workout Bonuses Paid as follows:
If player is waived prior to 4:00 pm on Friday, July 29th Bonus less than $50k-- player paid full amount Bonus from $50k to $100k player paid $50k Bonus over $100k player paid 50% up to max of $100k
If player is waived on or after 4:01 pm on July 29th Player paid the full amount of the bonus
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Roster and Option Bonuses

Roster & Option bonuses which were to be earned during the period of the lockout, amended to be earned if on the roster at 4:00 pm on July 29th (e.g., roster bonus to be earned on March 15th, amended to be earned if on roster at 4:00 pm on July 29th) Players can be required to report on either July 26th or 27th to get a physical
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Rookie Compensation
Overall limit on Total Rookie Compensation of $874M in 2011, increasing with cap in subsequent years Year-One Rookie Compensation of $159M in 2011, increasing with cap Mandatory contract length
4 years (plus a 5th year club option for Round 1) 4 years for Rounds 2 to 7 3 years for Undrafted Rookies
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Rookie Compensation
Player must contract for at least the Year-One Minimum Allotment provided for in his draft slot. 25% Rule all compensation applies toward the 25% maximum increase year over year including signing bonus proration (Proration is for 4 years for all Drafted Players)
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Rookie Compensation
For Undrafted Rookies, $75k maximum for signing bonuses per Club ($25k maximum for the Year-One Rookie Compensation Pool). Increases with cap.

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Rookie Compensation
No limit on the amount of guaranteed compensation allowed in a contract, except that the contract cannot skip guaranteed years after the first year (e.g. a player who had his full Rookie Salary guaranteed in his third season must have his salary fully guaranteed for his second season)
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Rookie Compensation
Players may only contract for the following types of compensation:
Rookie Salary, minimum offseason workout pay, Fifth Year Option (for 1st round), Proven Performance Escalators (3rd through 7th rounds) and 5 Community Relations/Sponsor appearances per year not to exceed $5,000 per appearance (this non-football compensation does not count against Total Rookie Compensation limit). 18

Rookie Compensation
Limited incentives
Rounds 1 & 2 35% playtime in first year/45% playtime in subsequent years Rounds 3 7 15% playtime in first year/30% playtime in subsequent years

(Counts 100% against the Year-One/Rookie Allocation, Total Rookie Compensation, 25% Rule, etc.)
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Rookie Compensation
5th year club option for 1st rounder to be exercised after the players 3rd season, guaranteed for injury when exercised and for skill, injury & cap if on the roster at the start of the 5th League Year:
Picks 1 to 10 Salary of the average of the top ten players at players position Picks 11 to 32 Salary of the average of the top 3rd through 25th players at players position 20

Rookie Compensation
EXAMPLE As a quarterback, the 1st pick in the 2011 Draft may earn $22.03M over four years, plus an option year salary of $14.3M (assuming a 5% growth rate) in his 5th year if exercised for a total of $36.33M over 5 years.

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Rookie Compensation
Proven Performance Escalator for Rounds 3 -7 in the fourth year based on 35% playtime in two of the first three seasons or an average of 35% playtime over 3 years Escalator increases 4th year salary to the ROFR amount which is $1.2M in 2011, and increases with the Salary Cap 22

Rookie Compensation
Savings from change in Total Rookie Compensation system calculated to be $25m for 2012, $50m for 2013, $100m in 2014, increasing each year thereafter with the Year-One Rookie Compensation Pool (minimum of $775m) Savings to be spent on Legacy Fund, veteran performance pool or any other purpose the NFLPA may deem 23 appropriate

Minimum Salaries
Increased $55k from 2010
CS 0 1 2 3 4-6 7-9 10+ 2011 375 450 525 600 685 810 910 2012 390 465 540 615 700 825 925 2013 405 480 555 630 715 840 940 2014 420 495 570 645 730 855 955

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Injury Protection
Injury Protection benefit increased to 50% of the players salary up to $1.0M in the year after the year of injury Extended Injury Protection benefit for the second year after the year of injury for 30% of the players salary up to $500k 50% of the benefit subject to a dollar for dollar credit against workers comp for these Injury Protection benefits only
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Workers Comp
Continue time-limited credit contained in the expired CBA for any Paragraph 5 Salary paid to a player against any player worker compensation benefit paid Continue to litigate with the clubs over a players right to file in the jurisdiction of his choosing and not be bound by player contract language which would limit that right (e.g. California cases) 26

Offseason Workouts
Limited to 9 weeks Three Phases
Phase One
Two weeks; limited to strength and conditioning activities (dead ball); only strength and conditioning coaches allowed on field

Phase Two
Three weeks; individual and perfect play drills allowed (no offense vs. defense); all coaches allowed on the field
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Offseason Workouts
Phase Three 4 weeks; 10 OTAs; maximum of three OTAs for the first 2 weeks; maximum of 4 OTAs for the 3rd or 4th week, with the other week being the minicamp Fines for violations (in addition to week of lost workouts): Coaches - $100K for 1st violation; $250K for 2nd Clubs - $250K for 1st violation; $500K for 2nd 28

Minicamp
Physicals on Monday but not practice; practices Tuesday Thursday; day off on Friday Maximum of 3 hours on the field per day
One practice per day up to 2 hours Second practice limited to walk through activities only
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Preseason
Mandatory veteran reporting date no earlier than 15 days prior to the first game 1st day limited to physicals and meetings 2nd and 3rd day no pads or contact Only one padded practice per day limited to 3 hours with the second practice up to the 4 hour limit being a walk through

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Regular/Postseason
Limit of 14 total padded practices during the Regular Season, 11 of which must be held during the first 11 weeks (club may hold 2 padded practices during only one week) with the remaining 3 during the final 6 weeks One padded practice per week in postseason

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Regular/Postseason
Padded practices limited to 3 hours, plus a walk through with position coaches not to exceed 30 minutes Bye Weeks 4 consecutive days off

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Forfeiture Provisions
League wide rules regarding maximum forfeiture provisions for signing, roster, report and option bonuses Forfeiture limited and generally proportionate to games missed due to breach (e.g. missing training camp for six days would result in forfeiture of 15% of players prorated bonus, with 1% per day after that up to 25%; regular season - 25% for missing first game, 1/17th each game after that; higher forfeiture if separate, multiple breaches)
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Dispute Resolution
System Arbitrator for AR, Salary Cap and free agency issues selected by the parties. Appeals to a 3-member appeals panel, including at least one former judge. 3-year statute of limitations.

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Legacy Fund
$620M to be paid for the benefit of former players during the term of the Agreement 51% to be paid by the NFL outside of the cap 49% to be paid out of the players share of AR
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Other Terms
Agreement length of 10 years through the 2020 Season 46 player Active List

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League Demands Rejected

No massive pay cut - NFL initially demanded 20% cut in player share No sharing in future revenue growth No 18 games No rookie & veteran wage scale Restricting players with 4 and 5 Accrued Seasons in 2011 who otherwise would be unrestricted Full forfeiture of compensation already earned
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QUESTIONS?
AFTER the call, please email us at NFLPA.Agentservices@nflplayers.com

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