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

The ongoing evolution of NFL contract negotiations under the 2020 collective bargaining agreement (CBA) has introduced innovative tactics and higher stakes for players and teams alike. One prominent maneuver in today's NFL landscape is the "hold-in," a strategy players use to express dissatisfaction with their contracts while avoiding the heavy fines associated with missing mandatory training camp.

The Cost of Absence

The CBA mandates significant penalties for players who miss training camp. Veterans beyond their rookie deals are fined $50,000 per day, whereas rookies incur a fine of $40,000 per day. Additionally, missing preseason games brings further financial repercussions, with players losing a week's base salary for each game missed. The aim is to deter contract holdouts, but it has led to the popularization of the "hold-in," where players report to camp but limit their participation to low-risk activities.

T.J. Watt’s 2021 use of the "hold-in" approach set a precedent when he became the NFL's highest-paid non-quarterback shortly before the season started. Following Watt's successful contract renegotiation, other players have increasingly adopted this method to leverage new deals without incurring prohibitive fines.

High-Profile Hold-Ins and Contract Extensions

In recent developments, the Cincinnati Bengals exercised a fully guaranteed $21.816 million fifth-year option for standout wide receiver Ja'Marr Chase but face the challenge of securing his participation. During June's mandatory minicamp, Chase refrained from involvement in team drills beyond walkthroughs. There is speculation that Chase might withhold full participation without a new contract in place, further testing the Bengals' ability to negotiate under the CBA’s stringent regulations.

Bengals president Mike Brown commented on the situation, noting Chase’s importance to the team alongside quarterback Joe Burrow. "He's a key player next to Joe. He's our next one. He knows that. We know it," Brown stated. Brown acknowledged the complexity of the situation, indicating that while they currently focus on football, contract discussions are inescapable. "I'm not going to rule anything out, but I will tell you that the die has probably been cast," he added.

Similarly, Brandon Aiyuk of the San Francisco 49ers employed a hold-in tactic by skipping offseason workouts and subsequently missing the mandatory June minicamp, which cost him a $101,716 fine. Having requested a trade just before the training camp, Aiyuk’s stance underscores the lengths to which players will go to assert their value and command better contract terms. Aiyuk is slated to earn a fully guaranteed $14.124 million in 2024 on his fifth-year option, representing a significant financial commitment from the 49ers.

Potential Repercussions

The consequences of a player walking out after reporting to training camp can be severe. If a player is placed on the reserve/left squad list, it not only prevents him from playing for the remainder of the season but also freezes his contract for the following year. This rule serves as a strong deterrent against players abandoning camp after initially reporting. The maximum penalty for breaching Paragraph 2 of the NFL Player Contract includes a fine of one week’s salary and a suspension of up to four weeks without pay, further complicating the decision for players contemplating a full holdout.

Recent Extensions Highlight Market Trends

A wave of recent high-profile contract extensions showcases the shifting dynamics within the league. Justin Jefferson, a premier wide receiver, signed a lucrative four-year, $140 million extension with the Minnesota Vikings, featuring $110 million in overall guarantees and $88.743 million fully guaranteed at signing. Similarly, DeVonta Smith inked a three-year, $75 million deal with the Philadelphia Eagles, and Jaylen Waddle secured a three-year, $84.75 million extension from the Miami Dolphins. These blockbuster deals emphasize the escalating value of top-tier talent in the NFL and the increasing willingness of teams to lock in their key players with substantial financial commitments.

As the 2023 NFL season approaches, the landscape of contract negotiations remains ever-changing, with the "hold-in" tactic poised to play a pivotal role in how players and teams navigate the complex waters of the league’s financial and regulatory framework. The balance of power continues to shift, driven by the strategic actions of players seeking to maximize their earning potential while avoiding the steep penalties enshrined in the CBA.