I’ll take that as no you have no proof, cool
Ok I’ll settle for proof of your claim their finances make it hard to do contracts then, or you can raise the white flag on this latest version of your Tomlin/Rooney apologist argument ….
Here is an article that discusses the issue. Williamson and Lolley as well others have discussed it ad nauseum on the talk shows.
The NFL’s Billions Locked Away: How Outdated Escrow Rules Prevent Fully Guaranteed Contracts
Victor Menendez
Victor Menendez
Sports Management Specialist & Business Lawyer | Dual MBA from ESEI & Collège de Paris
Published Mar 10, 2025
+ Follow
The NFL’s Escrow Rule: The Billion-Dollar Roadblock to Fully Guaranteed Contracts
In the NFL, where billionaires play chess with millionaires, there’s an obscure but wildly important rule that quietly controls how teams structure contracts: the escrow mandate. It’s the reason why fully guaranteed contracts remain a unicorn in professional football. It’s also the reason why some NFL owners are cash-poor despite their teams being worth billions, and why guys like Patrick Mahomes get half a billion dollars on paper, but not in reality.
So let’s break it down. What exactly is the escrow rule? Who benefits from it? Who suffers because of it? And most importantly—where does all that money actually go?
Why Does the NFL Require Guaranteed Money to Be Held in Escrow?
Let’s rewind to the 1960s. The NFL wasn’t the financial juggernaut it is today. Teams were much more unstable, and owners weren’t exactly rolling in cash. Players (rightfully) feared that if a team went bankrupt or an owner just didn’t feel like paying, their guaranteed money would disappear. So, the league created a rule that requires teams to deposit guaranteed contract money into an escrow account, ensuring players would always get paid, no matter what happened to ownership’s finances.
Sounds reasonable, right? In theory, it protects players. But in reality, it’s a massive financial anchor that limits how teams operate.
How the Escrow Rule Shapes Contracts and Hurts Cash-Strapped Owners
Here’s the problem: Not all NFL owners are built the same. Some are Walmart-heirs like the Waltons (Broncos), or tech moguls like David Tepper (Panthers), who can cut a check for $200 million tomorrow and not even flinch. But others—like Mike Brown (Bengals) or Mark Davis (Raiders)—don’t have that kind of liquid cash lying around.
So when a team offers a player a $150 million contract with $100 million guaranteed, the owner has to put that $100 million into escrow immediately. That’s real money, not theoretical money. And that means some owners simply can’t afford to hand out massive guarantees, because they’d have to park that cash in an account where it just sits instead of being reinvested elsewhere.
The Kirk Cousins and Deshaun Watson Domino Effect
For years, NFL teams found ways to structure contracts with huge numbers but not much actually guaranteed. Then Kirk Cousins, of all people, broke the system. His 2018 deal with the Vikings was fully guaranteed, shaking up the league and setting a precedent.
Then came Deshaun Watson’s unprecedented $230 million fully guaranteed contract with the Browns. This wasn’t just a contract—it was a nuclear bomb for the escrow rule. If the Browns had to put $230 million into escrow, imagine what that did to their ability to spend elsewhere. Other owners—especially the ones who aren’t sitting on endless cash—hated this move. It set a dangerous precedent that they didn’t want to become the norm.
And guess what? It hasn’t. Despite Watson’s deal, other quarterbacks (even Lamar Jackson) haven’t been able to replicate that kind of fully guaranteed payday. Why? Because of the escrow rule.
Recommended by LinkedIn
Where Is All This Money Sitting? Who Controls It?
Great question. That money doesn’t just disappear. It sits in accounts controlled by the NFL and its owners, basically collecting dust. In theory, it ensures financial stability. In reality, it’s a pile of billions that could be reinvested in team infrastructure, stadiums, analytics, or even additional player contracts—but instead, it just sits there.
Imagine you’re an NFL owner. You have to park $150 million in an account you can’t touch, while your competitor—who’s wealthier—can afford to do so easily. That’s the competitive imbalance the rule creates.
How Much Will NFL Teams Lock in Escrow This Offseason?
With a record-breaking free agency period expected, we could see over $1 billion locked into escrow accounts across the league. That’s money that won’t be used for training facilities, player benefits, or staff salaries—it’ll just sit in financial purgatory.
How Does This Compare to Other Sports?
The NFL’s escrow rule is unique among major professional sports leagues. In the NBA and MLB, teams are not required to put guaranteed contract money into an escrow account. That’s why you see fully guaranteed contracts as the norm in those leagues.
- NBA: Every max contract you see—LeBron James, Kevin Durant, Giannis Antetokounmpo—is fully guaranteed. Owners don’t need to front the entire amount in an escrow account, so they can structure deals without financial constraints.
- MLB: Baseball has no salary cap and no escrow rule, which is why you get decade-long, fully guaranteed deals like those of Shohei Ohtani, Mookie Betts, or Bryce Harper. Owners have deep pockets, but they don’t have to lock away hundreds of millions in untouched accounts.
- Soccer (European Football): Unlike American sports, European clubs operate under a different financial model, often using broadcasting and sponsorship revenue to fund contracts in real time. While there are financial regulations like UEFA’s Financial Fair Play (FFP) rules, there’s no equivalent escrow system forcing clubs to stash cash in a separate account.
The result? More financial flexibility, higher guarantees, and fewer artificial restrictions on contracts. Meanwhile, NFL teams are still bound by a rule designed for an era when franchises weren’t worth billions.
Should the Escrow Rule Be Eliminated?
At this point, the rule is outdated. The NFL is worth hundreds of billions. Teams aren’t folding overnight like they did in the ‘60s. Theoretically, the NFL could guarantee contracts itself or create a more flexible system. But here’s the reality:
- Owners love the escrow rule because it gives them an excuse to avoid fully guaranteed contracts.
- The NFLPA wants it gone but hasn’t had the leverage to make it happen.
- Some owners genuinely can’t afford to change it.
Until something shifts, the escrow rule will remain a massive reason why the NFL lags behind the NBA and MLB in fully guaranteed contracts. The money is there—it’s just locked away in a vault while players fight for every guaranteed dollar they can get.
The Bottom Line
The escrow rule is one of the NFL’s most unique and controversial financial regulations. It was created for stability but has turned into a crutch for owners who don’t want to pay full guarantees. As we head into another free agency period, keep an eye on those big-dollar deals—because behind every headline-grabbing contract, there’s a billionaire owner parking millions into a fund, watching it collect dust instead of interest.
https://www.linkedin.com/signup/cold-join?session_redirect=/pulse/nfls-billions-locked-away-how-outdated-escrow-rules-menendez-nu%C3%B1ez-zvq5f&trk=article-ssr-frontend-pulse_x-social-details_like-toggle_like-cta