NFL

What is a no-trade clause in an NFL contract? What are void years?

Cowboys quarterback Dak Prescott’s new contract includes a no-trade clause. Here’s what that and other contract details actually mean.

SAM HODDE | AFP

Jennifer Bubel

Sports journalist who grew up in Dallas, TX. Lover of all things sports, she got her degree from Texas Tech University (Wreck ‘em Tech!) in 2011. Joined Diario AS USA in 2021 and now covers mostly American sports (primarily NFL, NBA, and MLB) as well as soccer from around the world.

Update: Sep 11th, 2024 12:59 EDT

On Monday, Dallas Cowboys quarterback Dak Presott officially became the highest-paid player in NFL history. The Cowboys and Prescott agreed to a four-year,$240 million contract extension, which will earn him an average annual salary of $60 million. On Wednesday, more details of the contract were revealed, which included a no-trade clause and a no-franchise tag clause. Here’s what that and other terms of Prescott’s contract actually mean.

Stephen Jones says Dak Prescott's contract includes a no-trade clause and a no-franchise tag clause

Listen: https://t.co/GpHxpsZxrO

Watch: https://t.co/6IV9m1bxEz pic.twitter.com/6VDZu2BYsS
— 105.3 The FAN (@1053thefan) September 9, 2024

No-trade clause in an NFL contract

A no-trade clause in an NFL contract means that a team cannot trade a player to another team without his consent. If that player wants to go to another team and the team sets up the deal, then the player can waive the clause and complete the deal. If the team attempted to trade the player without his consent, then he could block the trade and it would not be accepted.

Usually, this clause is only part of the contracts of big stars in the NFL as they protect the player from being traded if they are not performing well or if the team is attempting to trade them to a team which is less competitive.

No-franchise/transition tag clause in an NFL contract

A no-franchise/transition tag clause in an NFL player’s contract means that his team cannot use a franchise tag on him.The franchise tag binds a player to his team for one year under certain conditions. It allows teams to retain valuable players with a known, non-negotiated salary. It is rare for an NFL contract to include a no-franchise tag clause.

Prescott’s contract details revealed: no-trade cause

COWBOYS

Cowboys restructure OT Terence Steele's contract

There are three different types of franchise tags:

Non-Exclusive Tag: The player can sign an offer sheet with another team and the original team can match the offer or receive two first-round draft picks if the player leaves.
Exlusivse Tag: The player is bound to the team and cannot seek other offers
Transition Tag: This is just like the non-exclusive tag, except that it only allows the origianl team to match the bidding team’s offer. There is no compensation if the player decides to leave.

Void years in an NFL contract

Void years are the years in which an NFL player will never play. They are used as placeholders for prorated signing bonus money, which can be assigned when the void years are created in the contract (or through a contract restructure). The maximum number of void years that can be added to a contract is five.