The Complexities of the NFL’s Salary System: Performance-Based Pay and Incentives”.

Report: Aaron Rodgers awarded NFL performance-based pay for four plays in 2023

The NFL’s salary system is a complex web of guaranteed money, restructuring, and incentives. Performance-based pay is just one aspect of this system that rewards players based on their playtime and base salary. Players who suffer season-ending injuries or see reduced playing time may not earn as much from this 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. Aaron Rodgers recently signed a two-year deal with $75 million guaranteed through 2024 after having $110 million guaranteed on his old contract with the Green Bay Packers. However, he suffered a season-ending injury in Week 1 and earned very little from the performance-based pay system during that season.

Rodgers hopes to return next season and avoid another injury that could impact his earnings further. If he can stay healthy, his paycheck will likely look much different in the future compared to his tiny performance-based pay in 2023. For now, Rodgers’ performance-based pay is just a small part of his overall wealth as he continues to recover from his injury and prepare for the upcoming football season.

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