What is a fifth-year option in the NFL? Explaining deadline for teams to pick up final year of rookie contract

Players drafted by the NFL know how long it will take for them to initially reach free agency.

Coming out of college, players selected in the seven rounds of an NFL Draft have four years to wait on a cost-effective rookie contract. For some, it's a high-paying contract that continues to allow them to play football for a few years. For others, it's just about winding the clock down to reach the big payday at the end.

Back before the 2011 NFL Draft, there was a new wrinkle added to contracts: the fifth-year option. Not long after the 2024 NFL Draft came to a close, teams are now having to make final decisions on first-rounders from the 2021 NFL Draft to decide whether to exercise that option.

What is the fifth-year option? Here's what you need to know.

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What is a fifth-year option in the NFL?

The fifth-year option is a chance for NFL teams to keep their highest-drafted players around the roster for an extra year. Unlike rookies drafted in the second through seventh rounds, first-round picks have a team option that can be picked up in the preseason before their fourth year of the rookie deal.

There is a catch to the fifth-year option. While most of a player's rookie contract is relatively inexpensive, the fifth-year option is a drastic increase in salary. For example, the 2020 first overall pick Joe Burrow made $11.5 million in 2023 as the fourth year of his rookie contract, according to Spotrac. In 2024, before his extension, he was set to make $29.5 million on the fifth-year option.

Fifth-year option salary

There are several factors used to determine the cost of a fifth-year option, based on the 2020 NFL Collective Bargaining Agreement. There have been changes made to the factors over the years, but the following are the steps for players drafted in the first round in 2018 and beyond.

The highest-paid fifth-year option will be for players who earn multiple Pro Bowls on the original ballot in their career. Alternates are not counted. Those players will earn a salary based on the franchise tag cost of a player at that position. Next up are players who are named to just one Pro Bowl. Those players earn the equivalent of their respective position's transition tag cost. 

If a player was not named to any Pro Bowl teams (or was only named as an alternate), playing time becomes a factor. Players that appeared in either 75-plus percent of possible snaps in two of their first three seasons, an average of 75-plus percent of possible snaps during all three seasons, or at least 50 percent of possible snaps all three seasons will receive a salary that is the average of the 3rd-20th highest paid players at the position over the past five years.

First-round picks who don't meet that playing time criteria earn an average of the 3rd-25th highest salaries over the past five years.

MORE: Draft grades for all 32 NFL teams

2024 fifth-year option deadline

Teams will have until Thursday, May 2, to let the league office know about fifth-year option decisions. The window to let the league know about the decision opened on Jan. 8.

History of fifth-year options

The fifth-year option has been a part of first-round rookie contracts since the 2011 draft class. Sporting News has tracked each option since the initial round of decisions made by teams.

Here's a look at all the fifth-year option decisions, sorted by draft class. All teams listed are the team that drafted them unless listed in parentheses.

DRAFT CLASS: 2011 - 2012 - 2013 - 2014 - 2015 - 2016 - 2017 - 2018 - 2019 - 2020 - 2021

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021