Paragraph Five Salary

Players are paid 1/17 each week of their "P5 salary" during the 17 weeks of the Regular Season. The derivative of the term "Paragraph 5," is the fifth paragraph of the NFL Player Contract that specifically designates the salary to be paid to the player for each year. If the player is not on the team, then he obviously does not get paid this salary, and the team subsequently receives a credit of cap room for this amount.

This cap charge is governed by the NFL Collective Bargaining Agreement, with minimum amounts distinctively designated for the years of experience for each player. For example, the minimum P5 for a rookie player in 2004 is $230,000, while a 10-year veteran has a minimum salary of $755,000.

The most important factor of P5 salary is that the player is only paid for each week that he is on the roster, which allows the team to control cash and cap expenditures. Obviously, teams will pay players above the minimum, and they must manage their compensation with respect to production and team composition.

In late August, as teams reduce the roster down to 53 players, there is an important NFL rule that specifies that "vested veterans" who have 4 or more credited seasons are guaranteed their full salary if they are on the roster on the opening day roster (Wednesday of Week 1). Therefore, teams are cognizant that if these experienced players make the team, then they will be obligated in cash and cap for the full salary and thereby make decisions accordingly. The non-vested players earn 1/17th of their salary on a weekly basis, and the earnable deadline for weekly pay is Tuesday, 4:00 pm EST.