NFL Free Agent Terminology

Salary cap - The salary cap is the absolute maximum each club may spend on player salaries. For 2006, that amounts to 63 percent of leaguewide "defined gross revenues" made up of preseason, regular season, and postseason gate receipts and radio and television rights.

Accrued season - Six or more regular season games on a club's active/inactive, reserved-injured or "physically unable to perform" lists.

Unrestricted free agents - Players become unrestricted free agents when they complete four or more accrued seasons and their contract expires.

Restricted free agents - Players become restricted free agents when they complete three accrued seasons and their contract expires. If the restricted free agent does not sign a contract, his rights revert exclusively to his old club. If the restricted free agent accepts an offer sheet from a new club, his old club can match the offer and retain him because it has the "right of first refusal." If the old club does not match the offer, it can possibly receive draft choice compensation depending on the level of its qualifying offer.

Offer sheet - When a restricted free agent receives and agrees to sign a contract with another team, the player must submit a certificate with the contract terms to his prior team. The prior team has seven days from the time it receives the offer sheet to exercise or not exercise its right of first refusal.

Exclusive rights free agents - Players become exclusive rights free agents when they complete less than three accrued seasons and their contract expires. They may negotiate or sign only with their prior club, if the prior club tenders the player at least a one-year contract at or above the minimum applicable. If the club does not tender, the player is free to sign with any club and no compensation is required.

Franchise players - A club can designate one franchise player. A franchise player must be offered a minimum of the average of the top five salaries of last season at his position, and can negotiate with other clubs. His old club can match a new club's offer, or receive two first round draft choices if it decides not to match. An "exclusive" franchise player is not free to sign with another club if he is offered a minimum of the average of the top five salaries at his position or 120 percent of the player's salary the previous year, whichever is greater.

Transition players - A club must offer an unrestricted free agent designated as a transition player a minimum of the average of the top 10 salaries of last season at the player's position or 120 percent of the player's salary the previous year, whichever is greater. A transition designation gives the club a first refusal right to match within seven days of an offer sheet given to the player by another club. If the club matches, it retains the player. If it does not match, it receives no compensation.