Veteran Minimum Salary Benefit Rule
When qualified, a player with more than two years of NFL experience can earn his total minimum salary, but have a cap figure that reflects two years of experience ? or in 2014, $570,000. The contract must be for only one year, and must not contain combined bonus money (signing, roster, workout) that exceeds $65,000.
For instance,
Shayne Graham recently re-signed with the New Orleans Saints on a 1 year $955,000 contract. With more than two years of experience (12), and a 1 year contract, Graham qualfies for the cap hit benefit. His 2014 cap figure will be $570,000 in New Orleans.
Had he received a signing bonus of the maximum $65,000, he would have received a $1.02 million contract, with a $955,000 base salary, a $65,000 signing bonus, and a cap figure of $635,000 (570+65).
With plenty of veterans being released, or not signed back thus far in 2014, the use of the Minimum Salary Benefit Rule becomes useful both for older players looking for jobs, and teams looking to minimize their cap dollars.