The Evolution of NFL Contract Negotiations: The Rise of the Hold-In Tactic

The landscape of NFL contract negotiations has evolved significantly under the 2020 collective bargaining agreement (CBA), leading to a new tool in the players' negotiation arsenal: the "hold-in" tactic. This maneuver allows players to express dissatisfaction with their contracts while still meeting the mandatory reporting requirements to avoid hefty fines.

The Financial Stakes

The current CBA mandates that teams fine players who miss training camp, with veterans facing $50,000 per day and rookies $40,000 per day. For missing preseason games, penalties escalate to a week's base salary for each game missed. These stringent measures have heightened the stakes for both players and teams, compelling them to find new strategies to negotiate contracts without crossing the line.

Notably, only rookies have potential for fine forgiveness under this CBA, adding an extra layer of complexity for veteran players leveraging their statuses for better contracts. The training camp period extends from a team's mandatory reporting date through the Sunday before the first regular-season game, creating a crucial window for negotiations and potential "hold-ins."

High-Profile Hold-Ins

T.J. Watt's 2021 hold-in is a prime example of this tactic's effectiveness. Watt participated in training camp but refrained from team drills, eventually securing a record-breaking contract as the NFL's highest-paid non-quarterback shortly before the regular-season opener.

More recently, Brandon Aiyuk and Ja'Marr Chase have followed a similar path. Aiyuk, set to make a fully guaranteed $14.124 million in 2024 on a fifth-year option, skipped offseason workouts and incurred a $101,716 fine for missing the mandatory June minicamp. He subsequently requested a trade shortly before training camp. Meanwhile, Chase, who did not participate in team drills beyond walkthroughs during June's mandatory minicamp, might not play without a new contract. The Cincinnati Bengals exercised a fully guaranteed $21.816 million fifth-year option for Chase in 2025, and he remains a critical piece of their lineup.

Speaking about Chase, Bengals president Mike Brown highlighted his importance to the team and hinted at future negotiations: "He's a key player next to Joe [Burrow]. He's our next one. He knows that. We know it." Brown added, "The offseason is a better time for that and we're going to try to keep focused on the football part. I'm not going to rule anything out, but I will tell you that the die has probably been cast."

Consequences of Contract Disputes

The current CBA not only prescribes fines but also allows for severe penalties. For instance, a player can face a one-week salary fine and a four-week suspension without pay for breaching Paragraph 2 of the NFL Player Contract. Additionally, if a player walks out after reporting to training camp, he risks being placed on the reserve/left squad list, prohibiting him from playing for the rest of the season and freezing his contract for the following year. This adds another layer of risk for players considering a hold-out or similar actions.

Big-Money Extensions

Beyond hold-ins, the NFL has seen significant contract extensions in recent years. Justin Jefferson signed a lucrative four-year, $140 million extension with the Minnesota Vikings, securing $110 million in overall guarantees including $88.743 million fully guaranteed at signing. Similarly, DeVonta Smith inked a three-year, $75 million deal with the Philadelphia Eagles, and Jaylen Waddle received a three-year, $84.75 million extension from the Miami Dolphins.

These high-profile extensions underscore the evolving financial landscape of the NFL, where teams are increasingly willing to invest heavily in their star players. However, the pressures and financial implications under the current CBA ensure that the dynamics between players and management remain as complex and intriguing as ever.

As the 2024 season approaches, the actions and negotiations of key players will continue to shape the financial strategies of NFL teams, further influencing the league's contract negotiation environment.