One of the few things that a rookie to the NFL may negotiate is what is referred to as “offset language” in his contract.
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.
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 […]
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 […]
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 […]
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
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!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
