XFL Salary Cap, Contract & Signing Rules  

Updated for the 2014 Season

Current Salary Cap 

 70 Million

31 Million Bonus Cap

1. Salary Cap

Salary Cap: The XFL uses CONMANAGER, a salary cap program, to manage a player contract and salary cap system. The XFL's salary cap is designed to emulate the National Football League's system which is designed to aid competitive balance in the league. The current XFL salary cap is  $70 million and is in effect from the start of the regular season until the end of the season. Each team may spend up to $31 million in bonus money on contracts signed every season. This amount may increase by a small percentage each season in an attempt to stay "realistic."  All player salaries  are derived from a formula that factors in stats and ratings.

2. Contracts and Salaries

Player's salaries are determined by the contracts they have signed. Salaries consist of a prorated portion of any signing bonus plus the salary for that season.  Signing bonuses are subject to the yearly bonus cap and overall salaries are subject to the overall salary cap for that season. A player's "cap hit" is determined by dividing his signing bonus by the number of years of the contract and then adding a percentage of the base salary according to the formula below. 

  • 5 year deals - 1st year=13%, 2nd year=16%, 3rd year=19%, 4th year=23%, 5th year=29%
  • 4 year deals - 18%, 23%, 27%, 32%
  • 3 year deals - 20%, 30%, 50%
  • 2 year deals - 50%, 50%

Bonus money is "guaranteed" money. When a player is traded, released or retires his prorated bonus continues to count against the signing team's cap figures. Salaries for released, retired or traded players will not be counted any longer against that team's salary cap. In the case of traded players, the new team will assume the salary portion of the contract. Unlike the NFL, there is no "acceleration" of bonus cap hit for traded or released players.  Because of limitations in the salary cap program it is possible to nullify a previous contract by resigning a player that was just released. It is illegal for any team to bid on any free agent player who currently still counts against their salary cap in any way for the purpose of nullifying that cap hit.

Contract example: A player signs a three year deal worth 3 million in base salary with a 1.5 million dollar signing bonus. The entire signing bonus will be paid out of the amount allotted in this year's bonus cap, but count as 500k against each year's salary cap.  The 3 million dollars in base salary will count as 600k against the cap this year, 900k against the cap next year,  and 1.5 mill against the cap during the last year of the contract.  Overall, the player will count as 1.1 mill against the cap this year, 1.4 mill against the cap next year, and 2 mill against the cap during the last year of the contract.

3. Types of Free Agents and Retaining Free Agents

Each offseason (before the season), teams may have players whose contracts have expired. These players are called free agents and they fall into 3 categories according to their experience in the league. Each type of free agent has a corresponding mechanism whereby their team may retain their services.

1. Unrestricted Free Agents (UFA's): Are players with 4+ years of experience in the league and may be bid on by any team. The only way a team is ensured that it can retain the services of an unrestricted free agent is to designate that player as a franchise or transition player during the "pre-free agency" period.

  a.  Franchise and Transition player designations: Each team may designate 1 Franchise player and 1 Transition player. These designations can be made ONLY during the "pre-free  agency" period which runs from the end of the season to the beginning of "open season" free agency.  Franchise/transition tags remain in effect until the player retires, the player is traded, the player is cut or the player signs a contract.  In order to designate a player as the team's Franchise or Transition player, you must first submit a CON file with only a tag (no salary, bonus or years set).  If you designate a player as the team's Franchise player, his salary demand will be adjusted to equal the average of the top 5 players at that position or 120% of last year's salary (whichever is greater) .  If you designate a player as the team's Transition player, his salary demand will be adjusted to equal the average of the top 10 salaries at that respective position or 120% of last year's salary (whichever is greater).

  b.  Once  a team designates a player as the team's Franchise or Transition player, the team cannot submit a contract offer to that player until the "open season" free agency period ends.  In other words, if other teams can bid on the Franchise/Transition player, the original team can not.  The original team can remove the franchise/transition tag at any time during the "open season" free agency period; however, the player will be immediately placed in the free agent pool and WILL NOT resign with the original team.

  c.  Should a franchise or transition player sign with another team during the "open season" free agency period, the original team has 48 hrs to "match" the offer.  In order to "match" the offer, the original team must notify the commisioner  to create an identical contract  (same salary, same bonus, same length) for the player that was offered by the bidding team.  If the original team does not have enough bonus money to match the contract exactly, it will lose the player.  If the original team fails to notify the commissioner within the allotted time, it will lose the player.  If the original team is unable or chooses not to match a contract offer to a Franchise player, the original team shall receive compensation in the form of TWO 1st Round draft picks in the next TWO drafts.  If the bidding team does not have TWO 1st Round draft picks available over the next two drafts, then the contract offered to the Franchise player will be voided. Teams with more that two first round draft picks in the next two drafts may decide which two first round picks to give as compensation.  Owners may negotiate between themselves to lower the compensation required for a franchise player.  If the original team is unable or chooses not to match a contract offer to a Transition player, it will receive no compensation.

  d.  If the Franchise/Transition player does not sign with another team during the "open season" free agency period, the original team will have THREE chances to sign that player to a long term deal.  If the player refuses all three offers, the player will play for the 1 yr salary and hope the team does not tag him the following year.  There is a deadline to do this, as posted each year. In other words, while open season is going on, and you are limited in bids, you will have to start bidding on the tagged player in order to get a long term deal.

  e.  Franchise/Transition players can not be traded until they are signed to a contract.  Teams can, however, negotiate ahead of time for the original's team's agreement not to match a contract offer to the player.

  f.  Franchise and Transition players must be offered a long term contract that is at least the average of their 1 year Tagged Amount.  (so for a player who demands 4 million for the 1 franchised season, a 4 year deal would need to be worth 16 million in bonus and base salary to qualify).

2. Restricted Free Agents (RFA):  All players who have just finished their 3rd season and are currently not under contract are Restricted Free Agents (RFA's).  Before the beginning of "open season" free agency, an RFA's original team may tender a minimum "Qualifying Offer" to the player .  If the original team tenders a qualifying offer, the original team 1) retains the right to match any accepted offer and 2) receives compensation equivalent to the round the player was originally drafted in, if the original team does not match the accepted offer.  If the player was never drafted, there is no compensation based off of the minimum qualifying offer.  If the original team does not give the RFA a qualifying offer in the time allowed, He Becomes An Unrestricted Free Agent.  

  a.  How much is the minimum Qualifying Offer? The minimum qualifying offer depends on when the player was originally drafted. To see where a player was originally drafted you may check the XFL draft archives on the website.

   1st Rnd                   = $1,500,000
   2nd-3rd Rnd           = $1,000,000
   4th Rnd-undrafted  = $850,000

  b.  The original team can increase the compensation it would receive if it does not matching an accepted offer by tendering a higher qualifying offer to the player. 

Raise to 1st Round pick compensation       = $2,000,000
Raise to 1st and 3rd picks compensation   = $2,500,000

Perhaps you have a gem you acquired in Rd 7.  If you give him the 1.5M qualifying offer, now the compensation is a 1st Rd pick if someone signs him away and you do not match.  You may only raise the compensation to a 1st OR to a 1st AND 3rd.  You can not, for example, raise a 7th Rd pick to 2nd Rd compensation.

  c.  To submit a qualifying offer to an RFA, use CONMANAGER and submit a 0 year deal with no bonus and with the amount of the qualifying offer as the salary.

  d.  Once  a team submits a qualifying offer to an RFA, the team cannot submit a contract offer to that player until the "open season" free agency period ends. In other words, if other teams can bid on the RFA, the original team can not.  The original team can remove the qualifying offer at any time during the "open season" free agency period; however, the player will be immediately placed in the fa pool and WILL NOT resign with the original team.  

  e.   Any deal offered to a RFA must at least average the tendered amount.  For example, for RFAs tendered at $1.2 mill, the salary plus bonus for a 2 yr deal must be greater than or equal to $2.4 mill; for a three year deal, the salary plus bonus must be greater than or equal to $3.6 mill.

  f.  Should a RFA sign with another team during this period, the original team has 48 hrs to "match" the offer.  In order to "match" the offer, the original team must give the exact same contract (same salary, same bonus, same length) to the player that was offered by the bidding team.   If the original team does not have enough bonus money to match the contract exactly, it will automatically lose the player.  To match the offer. the original team must notify the commissioner and the bidding team of its decision within 48 hours.  The commissioner will then make the necessary corrections to the contract.  If the original team fails to notify the commissioner within the allotted time, it will lose the player.  If the original team is unable or chooses not to match a contract offer to the RFA, it will receive the compensation that correlates to the qualifying offer it had tendered to the RFA.  Owners may negotiate between themselves to lower the compensation required for an RFA.

  g. If the RFA does not accept an offer during the "open season" free agency period, the original team will have ONE chance to sign him to a long term deal.  If the player refuses the long term offer, the player will play for his 1 yr qualifying offer and become an Unrestricted Free Agent next year.  The original team can not offer a 1yr deal to the RFA, as the RFA will play for the tendered qualifying offer if he does not accept a long term deal.

  h. A team may use their franchise or transition designation on an RFA if it wishes.

  i.  The rights to RFA's may be traded.  

3. Exclusive Rights Free Agents (EFA's): Until a player has completed his 3rd season, only the team he plays for may negotiate with him.   Each failed attempt to sign a Exclusive Rights player carries a 5% penalty.

4. Free Agency Periods

Open free agency period. Once all teams have designated their franchise/transition players and tendered their RFA's, the commisioner will announce the beginning of "open season" free agency which will consist of several "rounds" of bidding. Teams may use the salary cap program CONMANAGER to send bid files to the commisioner in an attempt to sign players. The commisioner will inform the league as to the number of bids allowed and any other restrictions on bidding.

  a. The "open season" free agency period will commence before the draft and will end at the commisioner's discretion. At the conclusion of "open season " all franchise/transition players and RFA's may again be bid on by their teams. So, the sequence of the offseason would look like this:

   1. Pre Open Season phase: Teams may designate Franchise/Transition players and tender RFA's and also may bid on their own EFA's. No other bidding occurs during this period.

   2. Open Season free agency: consists of a number of rounds before the draft begins. Teams may bid on any UFA's in the free agent pool and any franchise/transition players and RFA's on any other team. Teams may continue to sign their own EFA's.

   3. Post Open Season free agency: All franchise/transition and RFA players may only be bid on by the team holding their rights. Teams may signs their own drafted players and EFA's and any UFA's in the free agent pool.

5. Holdouts

Holdouts: Holdouts are players who performed above their salary, and refuse to play under their current contract. They are not free agents, and are still owned by the original team. They may NOT be bid on by other teams, but may be traded. Teams may attempt to re-sign holdout players in any free agency bidding round.

6. Restructuring Contracts

Restructuring contracts is a way that teams may retain the core players on their team and possibly reduce their salary cap burden. During each offseason, each team may use CONMANAGER to  restructure up to 4 players that are ELIGIBLE to be restructured in that year.  To restructure a player simply submit a bid with the new deal before any signing period. A player is  not eligible for restructuring during the first or second year of any contract.  A player under a three year contract is eligible for restructuring once he enters the LAST year of his current contract.   A player under a four or Five year  contract is eligible for restructuring once he enters the last two years of his contract (I.E. the 3rd and 4th of a 4 year deal, or the 4th and 5th of a 5 year deal.  There is no limit to the amount of restructures that may be attempted on any player as long as they are eligible, however each failed offer carries a 15% penalty   (I.E. it will cost 15% more to sign that guy at the same percentage next time...... 

When a player successfully restructures his contract it cancels all aspects of his previous deal to all teams involved.

7. The Draft

The Draft: The draft pick salary demands (these are subject to inflation every year) are as follows:

 

Round 1, Pick 1

$6,000,000
Round 2, Pick 2 $4,800,000
Round 1, Pick 3 $4,400,000
Round 1, Pick 4 $4,000,000
Round 1 Pick 5 $3,600,000
Round 1, Picks 6-10 $2,800,000
Round 1, Picks 11-15 $2,200,000
Round 1, Picks 16-20 $1,800,000
Round 1, Picks 21-25 $1,500,000
Round 1, Picks 26-30 $1,200,000
Round 2 $1,000,000
Round 3 $850,000
Round 4 $700,000
Round 5 $550,000
Round 6 $400,000
Round 7 $250,000
Undrafted $200,000

 

  a. Minimum Contract Lengths: 1st round draft choices must be offered 5 year contracts, 2nd round choices must be offered 4 or 5 year contracts, 3rd and 4th round draft choices must be offered 3,4 or 5 year contracts and every other drafted player must be offered a minimum of a 2 year contract.

  b.  Conmanager handles what a player gets paid - if you play the odds and gamble, the rookie may sign for less than his salary demand.  A rookie will demand 10% more to sign with each failed attempt.  If the Rookie is still not signed by the beginning of the season, the team may attempt once per week to sign him.  Rookies must remain inactive until they are signed.  Violations of this requirement WILL RESULT in the player being cut from the team.