Fewer players signed deals in the first two weeks of NFL free agency this year compared with 2014, but those players accounted for more guaranteed dollars than the same period a year ago, according to numbers provided to SportsBusiness Journal by the NFL Players Association.
In the first two weeks of free agency this year, 213 total players, including restricted and unrestricted free agents, signed deals with a total guaranteed value of $870.3 million. That compares with 245 players signing deals that combined for $805.4 million guaranteed for the same time period a year ago (see chart).
The average first-year pay for free agents signed in the first two weeks of free agency is $3.4 million this year, compared with $3.1 million last year. Free agency started on March 10, and, generally speaking, the most sought-after and highest-paid free agents sign in the first two weeks.
Mark Levin, NFLPA director of salary cap and agent administration, said, “There were slightly fewer free agents available this year, more cap space and seven teams were below the 89 percent spend requirement.”
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The Miami Dolphins signed one of the highest-profile free agents, Ndamukong Suh.
Photo by: JONATHAN WILLEY / MIAMI DOLPHINS
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This year there were 360 available free agents, compared with 402 last year. This is also the third year of a four-year time frame in which teams are under the requirement in the collective-bargaining agreement to spend at least 89 percent of the salary cap.
The four teams that have spent the least in that four-year time period, which started in 2013, are the Oakland Raiders, the New York Jets, the Jacksonville Jaguars and the New England Patriots. The NFLPA announced in late March that those four teams had accounted for 30 percent of all guaranteed money between March 10 and March 24.
Meanwhile, there may be other reasons teams are spending more money on fewer players. One general manager, speaking to SportsBusiness Journal in early March, predicted, “The ‘A’ players are going to go up and up and up. The way the sport is going, more of the money will go to a lot less of the players.”
Earlier this month, this same general manager, who is not authorized to speak on free agent market economics, said he was not surprised by what has happened, saying clubs are concentrating on signing star players.
“The macro economics of the league continue to evolve,” he said in a text. “We are seeing the continuation of the erosion of the middle class.”
Meanwhile, veteran NFL player agent Kenny Zuckerman said he has noticed that free agent deals seem to be structured differently in recent years. “I would say the majority of the fully guaranteed money is in the first two years of the deal. In previous years, there was more signing bonus money and that was allocated over the life of the deal,” he said.
Signing bonuses are earned upon a player signing with the team. However, the amount of the bonus is counted against the cap on a prorated basis. For example, a $10 million signing bonus on a five-year deal would be prorated at $2 million per year.
“So the fully guaranteed money in the new deals is distributed more into guaranteed salaries and roster bonuses,” Zuckerman said.
