The NFL rookie contract can be tricky to understand, especially when you get into clauses like the fifth-year option. To casual fans, it sounds like some obscure rule buried in the fine print. To teams, it’s a powerful tool that can make or break a franchise. And in 2025, the decision on which players get this option — and who doesn’t — could completely reshape NFL rosters for years to come.
Here’s everything you need to know about the fifth-year option, how it works, and why it matters.
Every player drafted in the first round signs a four-year rookie contract. Built into that deal is the fifth-year option, which allows the team to extend the contract for one extra year. Teams must decide before the player’s fourth season begins whether to exercise the option. The cost of that fifth year is determined by position, draft slot, and past performance. For example, a quarterback who makes multiple Pro Bowls early in his career can command a fifth-year salary that rivals top veteran QBs.
This offseason, teams are evaluating the 2022 draft class, which includes several players who could hit the fifth-year option. Some of the biggest names include Kenny Pickett (Steelers), a young QB with promise but Pittsburgh must decide if he’s worth locking in before free agency; Garrett Wilson (Jets), a star wide receiver who could demand top-dollar if his option isn’t picked up; and Kayvon Thibodeaux (Giants), an elite pass rusher whose team is desperate to balance talent with cap space.
Picking up the option locks in the player for a guaranteed year at a set price, while passing on it could let the player test free agency early — and potentially force the team to pay much more later.
The fifth-year option isn’t just about performance. Teams use it as a strategic lever to buy time to negotiate a long-term deal rather than committing immediately, to increase trade value since a player with a guaranteed fifth year is more valuable, and to mitigate risk because injuries or underperformance can make exercising the option tricky. Think of it as a chess move: it gives front offices another piece on the board.
Case studies show how this works in practice. Trevor Lawrence picked up his fifth-year option early, giving the Jaguars flexibility to negotiate a long-term extension. Ja’Marr Chase’s option was exercised, reflecting his skyrocketing value. Micah Parsons, the Cowboys’ dominant edge rusher, was secured for the fifth year to lock in his talent. These examples show the difference between locking in talent versus gambling on future free agency.
Casual fans often ignore the fine print, but fifth-year decisions generate hot debates online. Will your favorite QB get locked in? Is a young receiver being undervalued? Reddit threads, Twitter polls, and TikTok clips often explode during this period, making it feel like a mini-draft frenzy all over again.
The fifth-year option might sound like a minor technicality, but it’s a major lever for roster construction. In 2025, the choices teams make regarding the 2022 draft class will determine the next generation of franchise cornerstones. Teams that play it smart secure young talent at a controllable cost. Teams that miscalculate could pay dearly — both on the field and in the cap room.
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