NFL’s Performance-Based Pay System: A Complex Puzzle with Winning and Losing Components

The NFL’s salary system is a complex puzzle that involves guaranteed money, restructuring, and performance-based incentives. Many players benefit from earning extra money based on their performance and playtime. However, those who suffer season-ending injuries or reduced playing time may not earn as much from the league’s performance-based pay system.

For example, New York Jets quarterback Aaron Rodgers earned the lowest amount among NFL players through the performance-based pay system in 2023, totaling just $81.14 due to a season-ending injury in Week 1. In contrast, San Francisco 49ers quarterback Brock Purdy nearly doubled his pay thanks to incentives, taking home an extra $739,765. Former Baltimore Ravens guard John Simpson led the program with an extra $974,613 for playing 99% of offensive snaps in 2023.

The performance-based pay system is designed to reward players based on their playtime and base salary. Players can earn more by playing a significant number of snaps, particularly if they have a low base salary. For instance, Aaron Rodgers recently signed a two-year deal worth $75 million guaranteed through 2024 after having $110 million guaranteed on his old contract with the Green Bay Packers.

Rodgers is expected to return next season and hopes to avoid another season-ending injury. If he can stay healthy, his paycheck will likely look much different in the future than it does now. For now, Rodgers’ tiny performance-based pay is just a small fraction of his overall wealth.

In conclusion, while some NFL players may not benefit as much from the league’s performance-based pay system due to injuries or reduced playtime, others can earn significantly more by playing well and staying healthy throughout the season.