Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

NFL Teams Use Offset Language to Avoid Rookie "Double-Dipping"

Author: Scarinci Hollenbeck, LLC

Date: August 27, 2015

Key Contacts

Back

One of the few things that a rookie to the NFL may negotiate is what is referred to as “offset language” in his contract.

offset language

However, chances are, teams won’t be inclined to remove such a clause from a first-year player’s contract.

Offset language isn’t a topic typically discussed beyond meeting rooms occupied by agents, players and team officials. Recently however, this sort of clause has become an issue for one team and its most recent NFL draft pick.

Marcus Mariota remains the last first-round draft pick yet to be signed, as his team, the Tennessee Titans, and he, continue to discuss the offset language the team insists remains in his contract. Offset language has become common in rookie contracts for players chosen within the top 10 draft picks. Only one player taken in the top of the most recent draft, Dante Fowler, has signed a contract without offset language, according to NBC’s Pro Football Talk.

What is offset language, and why is it included in rookie contracts?

Rookies picked high in the draft are pretty much guaranteed to discuss offset language with their teams and agents at some point before they sign their first contracts. Offset language helps ensure that top picks don’t end up double-dipping, or taking money from two teams if they are cut before their first contracts are up. SB Nation explained the concept using a contract – that includes offset language – with a fully guaranteed $5 million 2016 salary.

If the player is cut from his team, he will receive that guaranteed $5 million. However, if he signed with another team, then the salary he is set to receive from that new team will be deducted from what his old team was obligated to pay. If his new salary for the year is set to be $1 million, then his old team will owe him $4 million rather than $5 million. Without offset language he would receive $6 million – $5 million from his first team, and $1 million from his new one. Typically, offset language becomes important in the fourth year of a player’s first contract. Under the most recent collective bargaining agreement, rookie contracts last for four years, with a fifth year option. If offset language is included in that agreement, then the team can save money by turning down that fifth year option.

How offset language is approached in negotiations

Often, rookies will allow offset language to be included in their contracts, if only because teams will refuse to back down and strike such a clause from the deal. Two recently-drafted players without offset language – the aforementioned Fowler, as well as Blake Bortles, drafted in the 2014 draft – play for the same team, the Jacksonville Jaguars. Meanwhile, the Titans have asserted that the team’s intention to include offset language in Mariota’s contract isn’t an indictment of him as a player, but rather a policy in place for all rookies.

Rookies working on their first contracts would be wise to consult a sports attorney about offset language, and whether or not they will be able to negotiate such a clause out of their contracts.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What? post image

You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?

Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]

Author: George McGowan

Link to post with title - "You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?"
Why Every Business Should Conduct an Annual Insurance Coverage Review post image

Why Every Business Should Conduct an Annual Insurance Coverage Review

Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]

Author: George McGowan

Link to post with title - "Why Every Business Should Conduct an Annual Insurance Coverage Review"
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To) post image

Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)

Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]

Author: George McGowan

Link to post with title - "Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)"
How to Effectively Use Contracts to Manage Risk post image

How to Effectively Use Contracts to Manage Risk

Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]

Author: George McGowan

Link to post with title - "How to Effectively Use Contracts to Manage Risk"
Understanding Portability for Estate and Gift Tax post image

Understanding Portability for Estate and Gift Tax

Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]

Author: Marc J. Comer

Link to post with title - "Understanding Portability for Estate and Gift Tax"
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool post image

Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool

For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]

Author: Marc J. Comer

Link to post with title - "Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!