NFL Math Lesson: Performance-Based Pay

2013 PERFORMANCE-BASED PAY DISTRIBUTIONS ANNOUNCED; BEARS’ JORDAN MILLS TOP EARNER

Chicago Bears tackle JORDAN MILLS earned the top figure in the NFL’s “Performance-Based Pay” program that compensates players for playing time based upon their salary levels, the NFL announced today.

Players will receive $110.72 million in Performance-Based Pay for their performance during the 2013 season. By agreement with the NFL Players Association, the players will receive their performance-based pay distributions on April 1, 2016.

Mills, the Bears’ 2013 fifth-round draft choice (No. 163 overall) from Louisiana Tech, earned $318,244 in additional pay. He played for the league’s rookie minimum salary of $405,000 last year and an additional signing bonus of $164,800. He participated in 96% of the club’s offensive plays, as well as 15% of the club’s special teams plays.

Players have been paid over $800 million cumulatively since the inception of the Performance-Based Pay program, which was implemented as part of the NFL’s 2002 Collective Bargaining Agreement with the NFL Players Association.

Under the Performance-Based Pay system, a fund is created and used as a supplemental form of player compensation based on a comparison of playing time to salary. Players become eligible to receive a bonus distribution in any regular season in which they play at least one official down.

Performance-Based Pay is computed by using a “player index.” To produce the index, a player’s regular-season playtime (total plays on offense, defense and special teams) is divided by his adjusted regular-season compensation (full season salary, prorated portion of signing bonus, earned incentives). Each player’s index is then compared to those of the other players on his team to determine the amount of his pay.

Source: NFL Media

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