Restricted Free Agent
A player who has 3 years of experience is eligible for restricted free agency, whereby his current team has the chance to retain rights to this player by matching the highest offer any other NFL franchise might make to that player. The club can either block a signing or, in essence, force a trade by offering a salary over a certain threshold. In 2006, these thresholds were as follows:
* If a club tenders an offer of $685,000 per year for a three year veteran, and $725,000 for a four year veteran, the player's current team has "right of first refusal" over the contract at those terms, and may sign the player at those terms.
* If a club tenders an offer of $712,000 or 110% (whichever is greater) of the previous year's salary, then the current club has both "right of first refusal" and rights to a draft pick from the same round (or better) from the signing club. Essentially, this means that the new club must forfeit the draft pick to the old club if they wish to sign the player under these terms.
* If a club tenders an offer of $1.552 million or 110% (whichever is greater) of the previous year's salary, then the current club has both "right of first refusal"; and rights to the first round draft pick from the signing club.
Unrestricted Free Agent
A player who has four or more years of experience is eligible for unrestricted free agency, whereby his current team has no guaranteed right to match outside offers to that player. This means that players in this category have unlimited rights to negotiate any terms with any team.
