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NFL Encyclopedia / Trades & Transactions

Trade Kicker: NFL Definition

What is Trade Kicker in the NFL?

A contractual clause that pays the player an additional bonus if they are traded, typically calculated as a percentage of the remaining contract value, up to a league maximum of 15%.

How the Trade Kicker works

A trade kicker is a provision negotiated into a player's contract that triggers an additional payment if the player is traded. This clause serves as a form of protection for the player, compensating them for the disruption of being moved to a new team against their will. Trade kickers are more common in contracts signed by high-profile players who have leverage during negotiations.

The NFL limits trade kickers to a maximum of 15% of the remaining value of the contract at the time of the trade. For example, if a player has $40 million remaining on their deal and a 15% trade kicker, the bonus would be $6 million. This bonus is typically paid by the acquiring team and counts against their salary cap, though the specific terms can vary by contract.

Trade kickers can actually serve as a soft deterrent against trades, since the acquiring team must absorb the additional cost. In some cases, players have agreed to waive their trade kicker to facilitate a deal to a preferred destination, using it as leverage to influence where they are traded. The kicker essentially gives the player a financial voice in the trade process.

Trade Kicker example in the NFL

When Russell Wilson was traded from the Seahawks to the Broncos in 2022, his contract included a trade kicker worth approximately $26 million (15% of his remaining deal), which the Broncos had to absorb as part of the trade's overall cost.

How It's Calculated

Trade kicker payout = Remaining contract value x kicker percentage (max 15%)

See It In Action

Category: Trades & Transactions. Part of the StickToTheModel NFL Encyclopedia.

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