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Thread: The NFL's proposal to the players for a rookie compensation system

  1. #1
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    The NFL's proposal to the players for a rookie compensation system

    NEW YORK -- The NFL's proposal to the players for a rookie compensation system would divert about $300 million a year from first-round draft picks' contracts to veterans and player benefits.

    According to documents obtained by The Associated Press, the league's offer would free more than $1.2 billion by 2016 and slow the growth rate of guaranteed payments to first-rounders, which the documents show increased by 233 percent since 2000. All contracts for first-round picks would become fixed at five years.

    Such quarterback busts as [URL="http://sports.espn.go.com/nfl/players/profile?playerId=10446"][COLOR=#225fb2]JaMarcus Russell[/COLOR][/URL] ($32 million), [URL="http://sports.espn.go.com/nfl/players/profile?playerId=9596"][COLOR=#225fb2]Matt Leinart[/COLOR][/URL] ($12.9 million), [URL="http://sports.espn.go.com/nfl/players/profile?playerId=3529"][COLOR=#225fb2]David Carr[/COLOR][/URL] ($15 million) and [URL="http://sports.espn.go.com/nfl/players/profile?playerId=3531"][COLOR=#225fb2]Joey Harrington[/COLOR][/URL] ($13.9 million) received huge guaranteed payments that totaled $367 million in the last 10 drafts.

    Of course, [URL="http://sports.espn.go.com/nfl/players/profile?playerId=5526"][COLOR=#225fb2]Eli Manning[/COLOR][/URL] ($24 million), [URL="http://sports.espn.go.com/nfl/players/profile?playerId=5529"][COLOR=#225fb2]Philip Rivers[/COLOR][/URL] ($17.9 million) and [URL="http://sports.espn.go.com/nfl/players/profile?playerId=11237"][COLOR=#225fb2]Matt Ryan[/COLOR][/URL] ($34.7 million) have not done too badly for their teams.

    Guaranteed money paid to top 10 selections since 2000 reached nearly $2 billion. Guaranteed payments for all first-rounders were at $3.5 billion.
    During talks for a new collective bargaining agreement, the league also proposed eliminating holdouts by reducing the maximum allowable salary if a rookie isn't signed when training camp begins. The NFL also suggested eliminating holdouts for all veterans by prohibiting renegotiations of contracts if a player holds out in the preseason.

    The compensation system would not include a rookie wage scale and would allow for individual contract negotiations. Contracts would have a fixed length of four years for players chosen in the second through seventh rounds and would not affect salaries for those rounds, the league said.

    A modified salary system for rookies was a negotiating point for a new CBA until talks broke off March 11 and the NFL Players Association dissolved as a union. The owners locked out the players hours later.

    The two sides are scheduled for court-mandated mediation in Minneapolis beginning Thursday.

    [URL]http://sports.espn.go.com/nfl/news/story?id=6345279&campaign=rss&source=twitter&ex_cid=Twitter_espn_6345279[/URL]

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    [QUOTE=C Mart;3999965]NEW YORK -- The NFL's proposal to the players for a rookie compensation system would divert about $300 million a year from first-round draft picks' contracts to veterans and player benefits.

    According to documents obtained by The Associated Press, the league's offer would free more than $1.2 billion by 2016 and slow the growth rate of guaranteed payments to first-rounders, which the documents show increased by 233 percent since 2000. All contracts for first-round picks would become fixed at five years.

    Such quarterback busts as [URL="http://sports.espn.go.com/nfl/players/profile?playerId=10446"][COLOR=#225fb2]JaMarcus Russell[/COLOR][/URL] ($32 million), [URL="http://sports.espn.go.com/nfl/players/profile?playerId=9596"][COLOR=#225fb2]Matt Leinart[/COLOR][/URL] ($12.9 million), [URL="http://sports.espn.go.com/nfl/players/profile?playerId=3529"][COLOR=#225fb2]David Carr[/COLOR][/URL] ($15 million) and [URL="http://sports.espn.go.com/nfl/players/profile?playerId=3531"][COLOR=#225fb2]Joey Harrington[/COLOR][/URL] ($13.9 million) received huge guaranteed payments that totaled $367 million in the last 10 drafts.

    Of course, [URL="http://sports.espn.go.com/nfl/players/profile?playerId=5526"][COLOR=#225fb2]Eli Manning[/COLOR][/URL] ($24 million), [URL="http://sports.espn.go.com/nfl/players/profile?playerId=5529"][COLOR=#225fb2]Philip Rivers[/COLOR][/URL] ($17.9 million) and [URL="http://sports.espn.go.com/nfl/players/profile?playerId=11237"][COLOR=#225fb2]Matt Ryan[/COLOR][/URL] ($34.7 million) have not done too badly for their teams.

    Guaranteed money paid to top 10 selections since 2000 reached nearly $2 billion. Guaranteed payments for all first-rounders were at $3.5 billion.
    During talks for a new collective bargaining agreement, the league also proposed eliminating holdouts by reducing the maximum allowable salary if a rookie isn't signed when training camp begins. The NFL also suggested eliminating holdouts for all veterans by prohibiting renegotiations of contracts if a player holds out in the preseason.

    The compensation system would not include a rookie wage scale and would allow for individual contract negotiations. Contracts would have a fixed length of four years for players chosen in the second through seventh rounds and would not affect salaries for those rounds, the league said.

    A modified salary system for rookies was a negotiating point for a new CBA until talks broke off March 11 and the NFL Players Association dissolved as a union. The owners locked out the players hours later.

    The two sides are scheduled for court-mandated mediation in Minneapolis beginning Thursday.

    [URL]http://sports.espn.go.com/nfl/news/story?id=6345279&campaign=rss&source=twitter&ex_cid=Twitter_espn_6345279[/URL][/QUOTE]

    All contracts for first-round picks would become fixed at five years.

    That's a joke, right. The league wants 5 year contracts guaranteed at a fixed rate?!? That's simply an ridiculous proposal. Even for someone who agrees that the rookie salaries are completely out of whack, to limit rookie contracts and make them 5 years long is not going to happen in a million years and if I was a player, I'd be pretty annoyed with the proposal.

  3. #3
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    [B]The NFL also suggested eliminating holdouts for all veterans by prohibiting renegotiation's of contracts if a player holds out in the preseason[/B] They have a Rooney Rule could this be a Revis Rule?? :eek:

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    Good idea, but 5 years is going to be a non-starter.

    If the rate is fixed, make it 3 years. Teams usually know by then if the player is worth an extension or not.

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    [QUOTE=TheMikeIsHot;4000105]Good idea, but 5 years is going to be a non-starter.

    If the rate is fixed, make it 3 years. Teams usually know by then if the player is worth an extension or not.[/QUOTE]


    so make it 4 years..done deal..move on to the next issue. :D

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    PFT - NFL’s rookie wage proposal includes eliminating holdouts
    Posted by Gregg Rosenthal on April 13, 2011, 2:46 PM EDT

    Getty ImagesThe Associated Press got a hold of the NFL’s proposed rookie wage scale on Wednesday.

    Some of the financial stuff is interesting — the league wants to divert $300 million-per-year from first-round picks to veterans — but the fine print is fascinating.

    According to Barry Wilner, the league wants to eliminate holdouts by “reducing the maximum allowable salary if a rookie isn’t signed when training camp begins.”

    Basically, you start losing serious money the moment you start to miss camp. The league wants to take this holdout idea even further.

    “The NFL also suggested eliminating holdouts for all veterans by prohibiting renegotiations of contracts if a player holds out in the preseason,” Wilner writers.

    Good luck with that.

    Eliminating holdouts in rookie contracts would be a big pill for the NFLPA* to swallow. It’s hard to imagine the union giving up the leverage of a veteran holdout, when it’s often the only leverage veterans have

  7. #7
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    Make the contracts guaranteed and then you can eliminate holdouts.

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    [QUOTE=TheMikeIsHot;4000133]Make the contracts guaranteed and then you can eliminate holdouts.[/QUOTE]

    They guarantee money don't they?? If a player has a bad year he doesn't give any back does he??:confused:

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    *****UPDATED ARTICLE of OP @ 4:35PM********

    Updated: April 13, 2011, 4:35 PM ET

    [B][SIZE="5"][URL="http://sports.espn.go.com/nfl/news/story?id=6345279"]NFL's rookie pitch frees $1.2B by 2016[/URL][/SIZE][/B]

    NEW YORK -- The NFL wants to cut almost 60 percent of guaranteed pay for first-round draft picks, lock them in for five years and divert the savings to veterans' salaries and benefits.

    More than $525 million went to first-rounders in guaranteed payments in 2010. The league wants to decrease that figure by $300 million, according to documents obtained by The Associated Press.


    ************************
    [B]NFL's reported rookie pay proposal*[/B]

    [I]• All first-round contracts fixed at five years.

    • More than $300 million per year shifted from rookie contracts to veterans' salary, benefits.

    • No rookie wage scale; individual contract talks allowed.

    • Contracts for rookies picked in Rounds 2-7 fixed at four years. Those players' contracts not affected by proposal.

    • The maximum allowable salary would be reduced if a rookie isn't signed when training camp begins. The NFL also suggested eliminating holdouts for all veterans by prohibiting renegotiations of contracts if a player holds out in the preseason.

    * Documents obtained by The AP[/I]
    ***********************************************


    The league's offer would free a total of more than $1.2 billion over four years through 2015 -- $37.5 million per team overall -- and slow the growth rate of guaranteed payments to first-rounders, which the documents show increased by 233 percent from 2000-10.

    The last five No. 1 overall picks received $180.844 million in guaranteed money before playing their first NFL game, according to figures obtained by ESPN.com's Pat Yasinskas through league sources. Last year's top pick -- Sam Bradford -- received $50 million guaranteed. Matthew Stafford (2009) got $41.7 million, Jake Long, 2008, ($30 million), JaMarcus Russell, 2007, ($32.019) and Mario Williams, 2006, ($27.125).

    The last 15 quarterbacks selected in the draft's top 10 picks -- including such busts as Russell, Matt Leinart ($12.9 million), David Carr ($15 million) and Joey Harrington ($13.9 million) -- have received $367.11 million guaranteed.

    Of course, Eli Manning ($24 million), Philip Rivers ($17.9 million) and Matt Ryan ($34.7 million) have not done too badly for their teams.

    Guaranteed money paid to top 10 selections since 2000 reached nearly $2 billion. Guaranteed payments for all first-rounders were at $3.5 billion. The average career length of a first-round pick since 1993 is 9.3 years.

    Eagles president Joe Banner said the original aim of the draft is being compromised by the expenses associated with signing top picks.

    "The whole concept of the draft and ordering of the picks is to maintain competitive balance in the league," Banner said. "Now teams get top picks who have become so expensive and there's the risk you can miss, and it makes the ability to trade in and out of those spots almost impossible. It can become a disadvantage to be in one of the top spots."

    The owners, of course, are the ones offering the huge guaranteed bonuses.

    During talks for a new collective bargaining agreement, the league also proposed eliminating holdouts by reducing the maximum allowable salary if a rookie isn't signed when training camp begins. The NFL also suggested eliminating holdouts for all veterans by prohibiting renegotiations of contracts if a player holds out in the preseason.

    The compensation system would not include a rookie wage scale and would allow for individual contract negotiations. Contracts would have a fixed length of four years for players chosen in the second through seventh rounds and would not affect salaries for those rounds, the league said.

    "From a fairness standpoint, the simple concept to drive this should be that the players who contribute the most to the league should get the most money," Banner said. "What this system does is ensures players playing well in the NFL and bringing in fans and driving TV [ratings] will get the money that went to players who turned out not to be so good. And that is good for everyone."

    The NFL Players Association was not immediately available for comment.

    Several agents said the proposals place unfair limitations on players entering the league.

    "Five years and reduced pay is basically restricting players," said Ben Dogra, whose clients include Patrick Willis and Sam Bradford. "Roughly 68 percent of the NFL is comprised of players with five years or less of NFL experience.

    [SIZE="4"][B]“Five years and reduced pay is basically restricting players. Roughly 68 percent of the NFL is comprised of players with five years or less of NFL experience.”[/B][/SIZE]
    -- Agent Ben Dogra

    "Even players from essentially picks 11 to 32 in the first round are good financial deals for the teams. If a player becomes a starter or an integral part of the team under the current system, the NFL teams have the player under a rookie deal that is favorable to the team."

    Peter Schaffer, who represents Josh Cribbs and Hakeem Nicks, called such a system "scouting insurance" for teams making bad selections high in the draft.

    "It also makes the rookies more valuable when you reduce the amount you are paying to the young guy," Schaffer said. "This will eliminate the veteran middle class because teams can have younger players who are making less and are under fixed contracts."

    A modified salary system for rookies was a negotiating point for a new CBA until talks broke off March 11 and the NFLPA dissolved as a union. The owners locked out the players hours later.

    The two sides are scheduled for court-mandated mediation in Minneapolis beginning Thursday.

    Information from ESPN.com's Pat Yasinskas and The Associated Press was used in this report.

  10. #10
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    [QUOTE=Savage69;4000153]They guarantee money don't they?? If a player has a bad year he doesn't give any back does he??:confused:[/QUOTE]

    :rolleyes:

    We both know the players don't give money back for lousy years, but at the same time, they can also get cut or lose money after an injury. A 4 year deal isn't worth the paper it's printed on if a player suffers a serious injury.

    It works both ways, and clearly the system was flawed. The way it's set up now, players almost HAVE to hold out in order to cash in while they can because there's no certainty with those contracts.

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    To get into the nitty gritty details of what a rookie compensation plan would look like, I really don't know. What I do know is rookie salaries were way out of control. Complete and total busts who weren't worth the league minimum in the long run were cleaning up. It's the established veterans, the stars and spokesman for the league that deserve that kind of money.

    My suggestion would be (and please tell me where/if you differ) fixed 4 year contracts. To my knowledge, 4 year contracts are the standard for first rounders. To go against that, just because the owners want it, I would view as unfair.

    Furthermore, I would make some determination on what first rounders should be paid with some guaranteed money, some signing bonus, and some incentives. Of course the first overall pick would get more than the second, and so on. With the salaries going up each and every year without regard to the economy and all kinds of other nonsense the owners might throw in as a negotiating ploy.

    I believe much of the money saved should be reallocated to veteran salaries and creating better a retirement system. At the end of the day, I still believe the retired players are the ones suffering the most.

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    [QUOTE=Kentucky Jet;4000130]PFT - NFL’s rookie wage proposal includes eliminating holdouts
    Posted by Gregg Rosenthal on April 13, 2011, 2:46 PM EDT

    Getty ImagesThe Associated Press got a hold of the NFL’s proposed rookie wage scale on Wednesday.

    Some of the financial stuff is interesting — the league wants to divert $300 million-per-year from first-round picks to veterans — but the fine print is fascinating.

    According to Barry Wilner, the league wants to eliminate holdouts by “reducing the maximum allowable salary if a rookie isn’t signed when training camp begins.”

    Basically, you start losing serious money the moment you start to miss camp. The league wants to take this holdout idea even further.

    “[B]The NFL also suggested eliminating holdouts for all veterans by prohibiting renegotiations of contracts if a player holds out in the preseason,” Wilner writers.[/B]

    Good luck with that.

    Eliminating holdouts in rookie contracts would be a big pill for the NFLPA* to swallow. It’s hard to imagine the union giving up the leverage of a veteran holdout, when it’s often the only leverage veterans have[/QUOTE]

    The NLFPA might go for that if the league offered to fully guarantee veteran contracts in exchange for no preseason holdouts by vets.

  13. #13
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    [QUOTE=Gas2No99;4000170]
    [SIZE="4"][B]“Five years and reduced pay is basically restricting players. Roughly 68 percent of the NFL is comprised of players with five years or less of NFL experience.”[/B][/SIZE]
    -- Agent Ben Dogra
    [/QUOTE]

    Incredibly mislesading when talking about 1st round draft picks. Using data from 1980 - 1995

    Average first round draft pick's career is 8.85 seasons (Median 9 seasons)

    Only 67 of 479 players had less than 5 seasons of playing time. (Another 26 1st round picks had 5 seasons of playing time)

    I still think 5 year contract would be ridiculously long for a capped rookie contract, though.

  14. #14
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    [QUOTE=Gas2No99;4000170]Updated: April 13, 2011, 4:35 PM ET

    [B][SIZE=5][URL="http://sports.espn.go.com/nfl/news/story?id=6345279"]NFL's rookie pitch frees $1.2B by 2016[/URL][/SIZE][/B]

    NEW YORK -- The NFL wants to cut almost 60 percent of guaranteed pay for first-round draft picks, lock them in for five years and divert the savings to veterans' salaries and benefits.

    More than $525 million went to first-rounders in guaranteed payments in 2010. The league wants to decrease that figure by $300 million, according to documents obtained by The Associated Press.


    ************************
    [B]NFL's reported rookie pay proposal*[/B]

    [I][B]• All first-round contracts fixed at five years.

    • More than $300 million per year shifted from rookie contracts to veterans' salary, benefits.
    [/B][B]
    • No rookie wage scale; individual contract talks allowed.

    • Contracts for rookies picked in Rounds 2-7 fixed at four years. Those players' contracts not affected by proposal.

    • The maximum allowable salary would be reduced if a rookie isn't signed when training camp begins. The NFL also suggested eliminating holdouts for all veterans by prohibiting renegotiations of contracts if a player holds out in the preseason.[/B]

    * Documents obtained by The AP[/I]
    ***********************************************


    The league's offer would free a total of more than $1.2 billion over four years through 2015 -- $37.5 million per team overall -- and slow the growth rate of guaranteed payments to first-rounders, which the documents show increased by 233 percent from 2000-10.

    The last five No. 1 overall picks received $180.844 million in guaranteed money before playing their first NFL game, according to figures obtained by ESPN.com's Pat Yasinskas through league sources. Last year's top pick -- Sam Bradford -- received $50 million guaranteed. Matthew Stafford (2009) got $41.7 million, Jake Long, 2008, ($30 million), JaMarcus Russell, 2007, ($32.019) and Mario Williams, 2006, ($27.125).

    The last 15 quarterbacks selected in the draft's top 10 picks -- including such busts as Russell, Matt Leinart ($12.9 million), David Carr ($15 million) and Joey Harrington ($13.9 million) -- have received $367.11 million guaranteed.

    Of course, Eli Manning ($24 million), Philip Rivers ($17.9 million) and Matt Ryan ($34.7 million) have not done too badly for their teams.

    Guaranteed money paid to top 10 selections since 2000 reached nearly $2 billion. Guaranteed payments for all first-rounders were at $3.5 billion. The average career length of a first-round pick since 1993 is 9.3 years.

    Eagles president Joe Banner said the original aim of the draft is being compromised by the expenses associated with signing top picks.

    "The whole concept of the draft and ordering of the picks is to maintain competitive balance in the league," Banner said. "Now teams get top picks who have become so expensive and there's the risk you can miss, and it makes the ability to trade in and out of those spots almost impossible. It can become a disadvantage to be in one of the top spots."

    The owners, of course, are the ones offering the huge guaranteed bonuses.

    During talks for a new collective bargaining agreement, the league also proposed eliminating holdouts by reducing the maximum allowable salary if a rookie isn't signed when training camp begins. The NFL also suggested eliminating holdouts for all veterans by prohibiting renegotiations of contracts if a player holds out in the preseason.

    The compensation system would not include a rookie wage scale and would allow for individual contract negotiations. Contracts would have a fixed length of four years for players chosen in the second through seventh rounds and would not affect salaries for those rounds, the league said.

    "From a fairness standpoint, the simple concept to drive this should be that the players who contribute the most to the league should get the most money," Banner said. "What this system does is ensures players playing well in the NFL and bringing in fans and driving TV [ratings] will get the money that went to players who turned out not to be so good. And that is good for everyone."

    The NFL Players Association was not immediately available for comment.

    Several agents said the proposals place unfair limitations on players entering the league.

    "Five years and reduced pay is basically restricting players," said Ben Dogra, whose clients include Patrick Willis and Sam Bradford. "Roughly 68 percent of the NFL is comprised of players with five years or less of NFL experience.

    [SIZE=2]“Five years and reduced pay is basically restricting players. Roughly 68 percent of the NFL is comprised of players with five years or less of NFL experience.”[/SIZE]
    -- Agent Ben Dogra

    "Even players from essentially picks 11 to 32 in the first round are good financial deals for the teams. If a player becomes a starter or an integral part of the team under the current system, the NFL teams have the player under a rookie deal that is favorable to the team."

    Peter Schaffer, who represents Josh Cribbs and Hakeem Nicks, called such a system "scouting insurance" for teams making bad selections high in the draft.

    "It also makes the rookies more valuable when you reduce the amount you are paying to the young guy," Schaffer said. "This will eliminate the veteran middle class because teams can have younger players who are making less and are under fixed contracts."

    A modified salary system for rookies was a negotiating point for a new CBA until talks broke off March 11 and the NFLPA dissolved as a union. The owners locked out the players hours later.

    The two sides are scheduled for court-mandated mediation in Minneapolis beginning Thursday.

    Information from ESPN.com's Pat Yasinskas and The Associated Press was used in this report.[/QUOTE]

    I don't see how this solves anything..Previously, only the 1st half of the 1st Round picks could be signed for 6 years..So all this is doing is reducing the top 1/2 from 6 to 5 yrs..But if there isn't a wage scale how is that reducing the $40-50M contract given to the Bradfords and Staffords and the $20+M given to the Gholston's??? Sure Bradford would only get a 5 yr contract around $40M..But how is that much of an improvement? He still would be making more than 98% of the veterans without playing a NFL down...Or am I missing something?

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    [QUOTE=Batmans A Scientist;4000011]All contracts for first-round picks would become fixed at five years.

    That's a joke, right. The league wants 5 year contracts guaranteed at a fixed rate?!? That's simply an ridiculous proposal. Even for someone who agrees that the rookie salaries are completely out of whack, to limit rookie contracts and make them 5 years long is not going to happen in a million years and if I was a player, I'd be pretty annoyed with the proposal.[/QUOTE]

    Your argument is especially important when you consider that the average NFL career is less than 5 years.

    My Plan: Simple and Fair
    1. Rookie wage scale based upon when a player is drafted and by position;
    2. All contracts are for 2 years;
    3. After 2 years, the player is a free agent.

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    [QUOTE=Digetydog;4001044]Your argument is especially important when you consider that the average NFL career is less than 5 years.

    My Plan: Simple and Fair
    1. Rookie wage scale based upon when a player is drafted and by position;
    2. All contracts are for 2 years;
    3. After 2 years, the player is a free agent.[/QUOTE]

    Not much different then Major League baseball that has a 5.6 career avg..

    [url]http://www.nytimes.com/2007/07/15/sports/baseball/15careers.html[/url]

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    [QUOTE=Digetydog;4001044]Your argument is especially important when you consider that the average NFL career is less than 5 years.

    My Plan: Simple and Fair
    1. Rookie wage scale based upon when a player is drafted and by position;
    2. All contracts are for 2 years;
    3. After 2 years, the player is a free agent.[/QUOTE]

    Are you kidding???? 2 years then a free agent,Sanchez would be a free agent this year then

  18. #18
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    [QUOTE=Dash with a past;4001175]Are you kidding???? 2 years then a free agent,Sanchez would be a free agent this year then[/QUOTE]

    and they would re-sign him for less $$$ because his stats suck..., ;)

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    [QUOTE=Dash with a past;4001175]Are you kidding???? 2 years then a free agent,Sanchez would be a free agent this year then[/QUOTE]

    Because more players would become free agents sooner, every team would have a large number of FA's after the initial rookie contract expires.

    Just looking at QB's for 2009:
    1. Matthew Stafford;
    2. Josh Freeman; and
    3. Mark Sanchez would be available.

    The Jets could allocate their cash to any QB they valued the most. It might be Sanchez or it might not be Sanchez. Maybe they would have stolen Matt Ryan or Flacco from the 2008 class. Maybe they would wait until the 2010 class reaches FA save up for a run at Sam Bradford.

    Basically, the teams would get a two year tryout of players at a fixed price. For some players, the teams would win as they get an incredible value (think when Roethlesberger came out) and in other cases they would get hosed (Vernon Gholston). After two years, all the teams (who would be subject to a hard cap) could allocate their funds to the players who have earned big raises after two years (Roethlesberger, Brady, Manning) instead of wasting them on rookie prospects who never pan out (Gholston, Lienart, Harrington, Carr, etc...).

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    [QUOTE=Digetydog;4001044]Your argument is especially important when you consider that the average NFL career is less than 5 years.

    My Plan: Simple and Fair
    1. Rookie wage scale based upon when a player is drafted and by position;
    2. All contracts are for 2 years;
    3. After 2 years, the player is a free agent.[/QUOTE]

    the sport would be regress under your plan. An unrestricted free agent after two years? You didn't clarify that. It'd be like following college basketball, where you know the uniform, but don't know the names, unless you are a fan of that particular team. As a fan, your plan is the worst i've read.

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