NFL Draft Contracts- A Comparative Look at Payouts from the Past to Present?

Nowadays, athletes wish to have fast access to their earnings and to sign life-changing deals. 

But just as players seek quicker withdrawals and guarantees for their success, many casino fans around the world turn to financial solutions that provide them with instant cashouts and access to their rewards, much like how instant payout casino Canada platforms ensure seamless transactions. 

So, let's see how NFL payouts have changed from the past to the present.

Early Years of the NFL Draft (1930s - 1960s)

At the beginning of the NFL, players could sign a deal with any club. However, this caused a significant disparity in the NFL, as they tended to sign for stronger teams and make them even stronger. So, in 1935, the NFL adopted the college player draft, proposed by the Eagles owner, Bert Bell. 

This plan called for teams to pick players in inverse order of their finish last season. It consisted of nine rounds, which were expanded to 10 in 1937. Later, in 1939, it got 20 rounds. However, the biggest twist was between 1938 and 1939, when only five of the teams ranked lower were able to make selections in the second and fourth rounds. 

A notable milestone from this NFL Draft was that Byron “Whizzer” White was selected in the first round by the Pittsburgh Steelers. This drove the economic evolution of the NFL, as he signed a contract of $15,000, which was a record at that time. 

However, as the All-America Football Conference came onto the scene in the latter decade, the NFL faced a drafting competition. Therefore, in 1947, the NFL decided to include a bonus section: the first pick overall. 

Unfortunately, this didn’t last long, as it was abandoned after the 1958 draft. Until then, all of the NFL teams got the first overall pick in the annual draft, but they resumed picking in reverse order of the standings. 

As for the competition between the NFL and the American Football League, it went on until 1967. They had separate drafts that became joint in the period of 1967 to 1969. Then, they merged at the end of the decade and put an end to the long rivalry. 

Rookie Wage Scales (1970s - 1990s)

During the 1970s-1990s, the NFL rookie contracts underwent significant changes. These changes were mainly influenced by the collective bargaining agreements (CBAs) but also by the evolving league dynamics and the rise of sports agents. 

Right after the NFL merged with the American Football League, they negotiated a new agreement. With this agreement, minimum rookie wages increased, and the league’s medical and pension programs also changed. 

In fact, salaries reached $12,500 for rookies and $13,000 for veterans, but the record contract was signed in 1974 by Carl Barzilauskas. His $650,000 contract for the New York Jets set a benchmark for rookies.

During the 1980s, rookie wages again changed. This period is where a few significant milestones occurred. With the 1982 agreement, the league got a bit different format. It consists of nine regular game sessions and a new playoff format that lets 16 out of 28 teams in the league qualify for the playoffs. 

However, what’s most significant is that during the 80s, the agent Michael Trope negotiated some extraordinary contracts, with one of them being the first million-dollar offer for an NFL rookie. 

But the 1990s are where everything took a turn. This era was the introduction of the NFL salary cap. More precisely, the CBA from 1993 introduced this cap and led to more structured rookie contracts. 

Later, in 1998, Peyton Manning became the highest-paid rookie at that time, as he signed a $48 million contract with the Indianapolis Colts. 

The Rookie Salary Cap Era (2000s - Present)

In the first ten years after the salary cap was introduced, rookie contracts, especially those for top Drafts, often surpassed the wages of veterans. For example, Sam Bradford signed a 6-year contract worth $78 million.

In 2011, the new CBA introduced more structured rookie wages that concerned a few issues. First of all, rookie contracts became more standardized in terms of Draft position. Also, rookies who were selected in the first round got 4-year contracts, but teams were allowed to hold a fifth-year option. 

Ultimately, there are clearer salary expectations for incoming players, which align the rookie compensation with performance and experience.

However, in recent history, the salary cap is much higher. For example, in the 2022-2023 season, it was $123.655 million. However, the latest NFL CBA was placed with the 2023-2024 season and required teams to meet the 90% salary floor at the start of preseason training camp.

Endorsements and Off-Field Earnings

Aside from the regular CBAs and rules in place, NFL players have a lot of endorsements that provide them with off-field earnings. Usually, they collaborate with big brand names. For instance, the high-profile rookie Robert Griffin III has secured endorsements with Adidas, Gatorade, and Nissan.

However, there are also a lot of veterans who secure endorsements. A notable player is the Kansas City Chiefs quarterback, Patrick Mahomes, who earns around $25 million per year from endorsements with Adidas and State Farm. 

Kyler Murray and Joe Burrow are other players who get around $3.5 and $4 million annually, respectively, from endorsements.

Conclusion

The NFL landscape is constantly changing, with the biggest changes being made in the NFL Draft contracts and wages. Nowadays, players earn millions of dollars, but they’re also part of significant endorsements that provide them with off-field earnings.