Welcome to today's Free Question of the Day in Athlete Rep Lab's daily NFLPA practice series.
Every day until the NFLPA Contract Advisor Certification Exam, we'll publish a brand-new, original exam-style question covering an important concept from the NFL Collective Bargaining Agreement (CBA) and the NFLPA Regulations Governing Contract Advisors.
Today's Topic: Proven Performance Escalator (PPE)
The Proven Performance Escalator (PPE) is one of the most technical compensation provisions in Article 7 of the NFL Collective Bargaining Agreement. It rewards qualifying second- through seventh-round draft picks by increasing their fourth-year compensation based on playing time or Pro Bowl achievements.
Let's see if you can avoid today's exam trap.
Today's Question
A player drafted in the second round qualifies for the Level One Proven Performance Escalator entering his fourth League Year.
His original Year 4 compensation consists of:
Paragraph 5 Salary: $1,500,000
Signing Bonus Proration: $900,000
Incentives: $100,000
Roster Bonus: $50,000
Assume the applicable Level One Proven Performance Escalator amount is $2,400,000.
Under Article 7, Section 4, what is the player's revised Year 4 Rookie Salary after application of the Proven Performance Escalator?
A) $2,250,000
B) $2,400,000
C) $3,150,000
D) $3,300,000
Take a moment to answer before scrolling.
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Answer & Explanation
Correct Answer
B) $2,400,000
The Rule Under Article 7, Section 4
The Level One Proven Performance Escalator equals the difference between:
The applicable Restricted Free Agent Qualifying Offer for a Right of First Refusal and Draft Selection at the Player's Original Draft Round, and
The player's Year 4 Rookie Salary, excluding signing bonus and amounts treated as signing bonus.
The resulting amount is then added to the player's stated Paragraph 5 Salary.
Step 1 – Calculate the Original Year 4 Rookie Salary
Exclude signing bonus proration:
Component
Amount
Paragraph 5 Salary
$1,500,000
Incentives
$100,000
Roster Bonus
$50,000
Original Year 4 Rookie Salary
$1,650,000
Step 2 – Calculate the PPE Increase
Applicable PPE amount:
$2,400,000
Minus original Year 4 Rookie Salary:
$1,650,000
Escalator = $750,000
Step 3 – Increase the Paragraph 5 Salary
Original Paragraph 5 Salary:
$1,500,000
Plus PPE:
$750,000
New Paragraph 5 Salary = $2,250,000
Step 4 – Determine the Revised Year 4 Rookie Salary
Component
Amount
Revised Paragraph 5 Salary
$2,250,000
Incentives
$100,000
Roster Bonus
$50,000
Revised Year 4 Rookie Salary
$2,400,000
The signing bonus proration remains unchanged and is excluded from the Year 4 Rookie Salary calculation for Proven Performance Escalator purposes.
Exam Tip
One of the easiest ways to miss a Proven Performance Escalator question is to confuse Paragraph 5 Salary with Year 4 Rookie Salary.
Remember:
Signing bonus and signing bonus proration are excluded when determining Year 4 Rookie Salary for PPE purposes.
Roster bonuses and incentives are included.
The PPE increases only the Paragraph 5 Salary, but the goal is to raise the player's Year 4 Rookie Salary (excluding signing bonus) to the applicable escalator amount.
This distinction is subtle, highly testable, and exactly the type of calculation that can separate a passing score from a failing one on the NFLPA Contract Advisor Certification Exam.