What is the 5th year option? NFL rookie contracts explained
The NFL draft has changed a lot of lives for young players dreaming of playing professional football. But rookie contracts have not changed since 2011. Before 2011, many high-profile rookies signed huge contracts before even playing a single down in the NFL (e.g., quarterback Sam Bradford, who signed a massive $78 million rookie contract for the St. Louis Rams). In fact, due to prior huge rookie deals and Bradford's being the most recent, eye-popping rookie contract in 2010, the 2011 CBA drastically changed how rookie contracts would look.
The new rookie contract structure for players selected in the NFL draft is now stricter. Every rookie is now automatically signed to a four-year contract. Although they cannot negotiate on the length or total contract amount, rookies do have a fifth-year option.
The #Dolphins officially picked up @ClemsonPros Christian Wilkins' fully-guaranteed, $10.753M fifth-year option per @MySportsUpdate
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After a player’s third full season in the NFL under their existing rookie contract, their respective teams have the option to pick up or decline the player’s fifth-year option. This wrinkle also means that all fifth-year options are fully guaranteed once the team picks it up. Thus, depending on whether the team wants to hold onto its investment, this decision of picking up or declining the fifth-year option is important for NFL teams.
Fifth-year options can be a way for NFL teams to keep talented players and still have flexible cap space
On Monday, May 3, 2022, this day marked the deadline for teams to officially pick up or decline their fifth-year options on their respective 2019 first-rounders from that NFL draft class. Notably, players like Arizona Cardinals quarterback Kyler Murray ($29.7 MM), San Francisco 49ers defensive end Nick Bosa ($17.9 MM), and Arizona Cardinals wide receiver Marquise Brown ($13.4 MM), all had their fifth-year options exercised, meaning their contracts become fully guaranteed.
Although Murray is seeking a contract extension with the Arizona Cardinals (and possibly holding out through training camp), at the very least, his rookie contract is now guaranteed. Players like Nick Bosa and Marquise "Hollywood" Brown have the coveted fully-guaranteed NFL contract.
The Cardinals officially picked up quarterback Kyler Murray's fifth-year option last Wednesday, a day before the start of the NFL draft. The move guarantees him $29,703,000, although that will change the two sides agree on a multi-year extension.
Other notable players whose fifth-year options were declined include Las Vegas Raiders running back Josh Jacobs ($8 MM), New York Giants quarterback Daniel Jones ($22.4 MM), and New England Patriots receiver N’Keal Harry ($12.4 MM). While these players’ contracts are not fully guaranteed, teams can re-sign them to team-friendlier terms to save cap space or even allow them to leave via free agency.