How should LA Rams handle their RFA and ERFA players this offseason?

The LA Rams may not have any salary-cap space at the moment, but if and when the need arises, the team will most certainly take the necessary steps to come in under whatever that final amount may be. What type of steps?  Well, a series of actions to defer, reduce, or transfer salary cap expense from the 2021 season to another team, to future years, or simply to rework a contract or waive players to remove some of the expense. What type of events will trigger such a ‘need’?

Well, the Rams are rapidly approaching the first day of the new NFL season. And a lot of things happen when the new NFL year begins on March 17, 2021, at 1:00 pm PT. That date is important in many ways, but one of the most important reasons for circling that date and time is that it signifies the start of a new NFL Free Agency market.  But other events happen before we get there.

We know that tomorrow, February 23, 2021, at 1:00 pm PT, the LA Rams may designate one of their players with either a Franchise or Transition tag. While that will certainly be a rather involved discussion among coaches and the front office, it won’t all stop there.  This is the start of an ever-quickening pace in NFL events.  And with the Rams already hip-deep in changing quarterbacks and a majority of coaches, this is an even more hectic time for the organization.

The rapid pace has certainly slowed down some feature articles we had wanted to publish by now. But we have certainly not been wrangling over too few events. Still, the deadlines for some significant events for the Rams are rapidly approaching, so it’s a good time for us to push everything else to the side (for the moment) and discuss this business about Exclusive Rights Free Agents and Restricted Free Agents.

Free Agency

The NFL and NFLPA have negotiated various categories of free agents. Those categories depend heavily upon the amount of ‘accrued seasons’ that a player has earned in his NFL career. To understand what makes up an accrued season, or credited season, you can check out this very informative article on NFL.com.

And of course, a free agent category only applies to players whose contracts have expired. While many think of NFL contract terms that last for four or five years, many rookies are signed to minimal contracts for short-duration. These players spend multiple years with limited ability to negotiate with other teams. Why is that? Well, it begins with the way that the NFL and NFLPA have agreed to define free agency, and the rights imbued to each specific category.

Almost everyone is familiar with the category of Unrestricted Free Agents (UFA). They are players who are commonly just referred to as free agents. Which players are UFAs? Any player with four or more accrued seasons becomes an unrestricted free agent.  These players are free to negotiate and sign with any team.

The next easiest category to define is the other extreme. That is the category of Exclusive Rights Free Agent (ERFA). A player falls into this category if they have fewer than three accrued seasons. If his original team offers him a one-year contract at the league minimum (based on his credited seasons), the player cannot negotiate with other teams. The minimum salary was established at $610,000 for the 2020 season in the latest CBA.  That amount increases to $660,000 for 2021.

Restricted Free Agent

Finally, there is the category of Restricted Free Agent (RFA). They are players who fall between the other two categories and are players with three accrued seasons. They are a unique sub-category, as they can negotiate contracts with any other NFL teams

BUT

Their original team can ensure that they have additional rights to the player’s ability to sign elsewhere. Those rights depend upon the original NFL team submitting a qualifying tender offer to their respective RFA player. A qualifying tender offer is required to be filed before March 17, 2021, at 1:00 pm PT in order to protect the original team’s rights.

Those offers can take one of three levels:

A First-Round Tender – currently estimated by Over The Cap at $4.766 million for one-year

A Second-Round Tender – currently estimated by Over The Cap at $3.384 million for one-year

A Right of First Refusal Tender – currently estimated by Over The Cap at $2.133 million for one-year

Unlike the cost of using either a tag, the cost of Tender offers does not vary based on the position played. The submission of a qualifying Tender offer triggers the following:

Teams commit to a one-year deal that the player can sign. As long as it is submitted by the league deadline, any of the three tenders gives the team the right to match any offer sheet for that player. Once an offer sheet is filed by a team, the original team has seven days to match the offer, or the player is free to sign with the new team.

Tactical versus Strategical

Even if the player signs elsewhere, the First-Round or Second-Round Tenders trigger compensation in the form of the new teams sending the appropriate draft pick to the original team. In the case of the player signing elsewhere, the Tender offer becomes obsolete, and with the exception of the appropriate draft pick compensation, will not factor into the original team’s salary cap.

But there is more to consider.  The LA Rams must weigh short-term actions versus long-term actions. That means that the Rams have the option to retain players. But doing so will cost them a rather hefty one-year contract to ‘protect their rights’.  In similar circumstances in 2020, the LA Rams failed to submit a qualifying tender offer for any RFA players.

Why did they elect not to do so?

Ultimately, the Rams did re-sign RFAs DE Morgan Fox and DB Donte Deayon at a much less expensive cost. And the team essentially released OLB Josh Carroway by not offering a minimum contract.  So while players are either Restricted Free Agents or Exclusive Rights Free Agents, the LA Rams may not act at all, and simply make a team-friendly offer after the dust settles in the NFL Free Agency market.

Wow. That’s a lot of stuff we just covered. Now, what does it all mean? It will make more sense if we apply this information to real-world scenarios.

ERFAs

The LA Rams have two Exclusive Rights Free Agents (ERFA) to address this offseason. Of course, both can be re-signed for the minimum salary. So both players should be affordable. Now, the question is whether the LA Rams will choose to re-sign them.

Interior offensive lineman Coleman Shelton is a 6-foot-5 285-pound powerhouse who graduated from the University of Washington in 2016. He played center for the Washington Huskies and played very well. Unfortunately, he was not drafted and landed on the Arizona Cardinals practice squad in 2019. The Rams signed him to their roster from there. While he seemed to have all the collegiate skillsets to thrive on the Rams offensive line, he played just 23 offensive snaps in 2019 and was exclusively a special teams’ player for the Rams in 2020.  He could prove to offer stiff competition for the center position, but the Rams have to afford him that opportunity.

Rams’ decision? Likely to re-sign with the team.

Interior linebacker Travin Howard is an interesting player. He has had just one season with the LA Rams when he played in just 102 defensive snaps during the 2019 season. And yet, he racked up 22 tackles and was competent enough in pass defense, allowing just nine of 15 passes to find their mark. That was enough to give him the inside track on starting in 2020 until a season-ending injury ended his season before it ever began.

Now, the Rams certainly must consider re-signing Howard to the team for several reasons. For starters, he certainly deserves to compete for a starting role that was all but his the previous year. Secondly, Howard will not garner must interest elsewhere, and his experience with the Rams makes him a far more valuable player on the Rams roster than any other team. Finally, he will be available to the team for the league minimum.

Rams’ decision? Almost certain to re-sign with the team.

Restricted Free Agents (RFA)

The LA Rams have two Restricted Free Agents to address this off-season as well. Of course, re-signing RFAs has a bit of strategy to it, while risking straining the player relationships. So it’s a tough decision, one that requires a bit of savvy and empathy.

Of course, one of the most vital decisions is how will the Rams handle DB Darious Williams? On paper, he is the ideal partner for Jalen Ramsey, as he has a strong presence in pass coverage. Not only did he allow less than 55 percent of passes heading his way to find their mark, but he also came up with four interceptions. He even returned one for a touchdown in the Wildcard Round of the NFL Playoffs against the Seattle Seahawks to help propel the Rams to victory.

He stands 5-foot-9 and weighs a solid 187-pounds. Don’t let his size fool you, as he will certainly have a huge and vigorous market if the Rams allow him to test free agency. The Los Angeles Chargers, Detroit Lions, and Green Bay Packers all have former Rams coaches who would love to add him to their rosters.  The cost of a First Round Tender offer for Williams is $4.766 million for a one-year contract. Even at that price, he would be a steal.

Rams’ decision? Better than a 50/50 chance that the Rams will submit a First-Round Tender Offer.

Tight end Johnny Mundt may be the free agent who the Rams do not act upon immediately. While he has been very useful and versatile for the LA Rams offense, his market price likely falls below any of the Tender offer prices. For that reason, I expect that the Rams will allow him to test free agency. After he has time to determine what the best offer might be, I expect that the Rams will have an opportunity to come in late in the free-agent period and offer a low-cost contract.

Do the Rams have other options for a blocking tight end? Not at the moment, but the team may be eyeing up young talent who could be signed after the 2021 NFL Draft for a fraction of the cost of Mundt’s expectations.  Meanwhile, the Rams lost several offensive and defensive coaches who could lobby their new teams to offer Mundt a contract that is above the Rams’ price range.

Rams’ decision? Less than a 25 percent chance that the Rams will re-sign him.

Four players, four difficult decisions to make. And yet they are just a fourth of the players seeking new contracts to play for an NFL team in the 2021 season and beyond.  Each player the Rams intend to sign will require an equal amount of money to be freed up from the team’s current salary cap.

It’s all happening quickly now and will move more rapidly as time progresses. It’s clear that the Rams executives and coaches will be putting in some late hours for a few months.