First-round picks sign four-year deals with a team option for a fifth year, while rounds 2-7 sign four-year contracts. All rookie deals follow the CBA's slotted wage scale with limited negotiation room.
Under the 2020 CBA, rookie contracts follow a rigid structure designed to control costs and reduce holdouts. First-round picks receive four-year contracts with a club option for a fifth year (the "fifth-year option"). Players selected in rounds 2 through 7 sign standard four-year deals with no fifth-year option. The total value of each contract is determined by the rookie wage scale, which assigns a slotted value based on draft position. The only real negotiation involves how much of the contract is guaranteed and the specific structure of signing bonuses, base salaries, and roster bonuses. Top picks receive fully guaranteed four-year deals, while later picks may only have partial guarantees. Rookie contracts are team-friendly by design. Star players drafted in the first round often significantly outperform their rookie deals, which is why teams value high draft picks so highly -- they represent potential elite production at a fraction of the market rate. This dynamic also drives the importance of the fifth-year option, which gives teams an additional year of cost-controlled production from their best young players.
Patrick Mahomes was drafted 10th overall in 2017 and signed a four-year, $16.4 million rookie deal. He won the MVP in 2018 while earning just $4.3 million, making his rookie contract one of the best values in league history before he signed a 10-year, $450 million extension.
Category: Draft & Rookies. Part of the StickToTheModel NFL Encyclopedia.