Determining Adjusted APY
The first phase necessary to execute these cancellations are to value each UFA that changed teams. OTC’s program does this by using the following steps:
Start with the actual APY of the contract signed.
Subtract from the actual APY any money that the compensatory formula does not count. It has been determined that workout bonuses, incentives, and salary escalators are the most common money figures that the compensatory formula does not count.
Adjust the APY by applying a coefficient based upon the percentage of offensive or defensive snaps the player took in his first year under the contract. OTC’s current adjustment uses 45% of the snaps as a base (a percentage that has been observed to be important for playing time for NFL contracts in general), in which a player who plays this amount will see no change, and for most players the adjustment will range to -9% (at 0% of the snaps) to +9% (at 90% of the snaps). For players who played more than 90% of the snaps, this playing time adjustment will get a 50% bonus, meaning that the maximum increase possible (for someone who played 100% of the snaps) is 16.5%.
Apply a positive coefficient to each UFA that obtained postseason honors. Currently, there is not enough data for OTC to reliably apply the coefficient. However, it is believed that postseason honors adjustments are smaller than playing time adjustments, and there are typically very few relevant CFAs that obtain them to begin with. It is believed that the postseason honors used in the compensatory formula are the ones explicitly listed in the CBA. These honors are Pro Bowl, All-NFL (First and Second Team), All-Conference (First and Second Team), Super Bowl MVP, NFL MVP, Offensive Player of the Year (NFL or Conference), Defensive Player of the Year (NFL or Conference), and Player of the Year (NFL or Conference).