Restricted free agent
A restricted free agent (RFA) is a professional athlete in major North American sports leagues, including the National Football League (NFL), National Basketball Association (NBA), and National Hockey League (NHL), whose contract has expired but whose original team retains specific rights to prevent unrestricted movement to another club by matching competing offers.[1][2][3] This status balances player mobility with team stability, typically applying to early-career players who have met minimum service requirements but not yet qualified for unrestricted free agency.[1][2][3] Eligibility for restricted free agency varies by league and is tied to accrued seasons or age thresholds. In the NFL, a player qualifies as an RFA after exactly three accrued seasons, defined as playing in at least six regular-season games per season, allowing their club to issue one of several qualifying tenders to maintain rights.[1] These tenders include options like the first-round tender at approximately $7.458 million for 2025, which, if the RFA signs an offer sheet with another team and the original club declines to match, requires the signing team to surrender a corresponding draft pick to the original club as compensation.[1] In the NBA, RFAs generally include former first-round draft picks completing their rookie-scale contracts after four years or players with three or fewer seasons of experience, with teams issuing a one-year qualifying offer to preserve matching rights.[2] The NHL defines RFAs as players under 27 years old or with fewer than seven accrued NHL seasons (at least 10 games per season), requiring clubs to extend a qualifying offer—typically 105% or 100% of the prior salary, capped at around $1 million for lower earners—to retain negotiation exclusivity or matching ability.[3] The process for RFAs emphasizes the original team's right of first refusal, deterring aggressive pursuits by rivals due to potential compensation costs. For instance, in the NFL and NBA, if an RFA signs an offer sheet with a new team (minimum two years in the NBA), the incumbent club has a limited window—seven days in the NFL, two days in the NBA, and seven days in the NHL—to match and retain the player, while NFL rules may also involve draft pick forfeiture if unmatched.[1][2][3] Failure to issue a qualifying offer converts the player to an unrestricted free agent, granting full negotiation freedom without matching rights.[1][2][3] This system, governed by each league's collective bargaining agreement, has evolved to protect developing talent while curbing excessive player turnover, though it often results in most RFAs re-signing with their original teams due to the matching deterrent.[1][2][3]Overview
Definition and key principles
A restricted free agent (RFA) in professional sports is a player whose contract has expired, allowing them to negotiate with other teams, but whose original team holds the right of first refusal to match any offer sheet signed with a new club, thereby restricting the player's full mobility in the market.[1][2] This mechanism balances player rights to seek better opportunities with team interests in retaining developing talent, preventing abrupt losses without recourse.[4] The key principles of restricted free agency include the ability for the player to sign an offer sheet with another team, triggering a matching period—typically several days—during which the original team can elect to match the terms and retain the player on their roster.[1] If the original team declines to match, the player joins the new team, and in some leagues, the original club receives compensatory assets such as draft selections to offset the loss.[5] This system fosters competitive balance by discouraging aggressive poaching while providing leverage for negotiations, often resulting in the player remaining with their incumbent team due to the matching threat.[2] Restricted free agency emerged in the 1970s and 1990s through collective bargaining agreements (CBAs) in major leagues like the NFL, NBA, and NHL, following antitrust lawsuits that dismantled the perpetual reserve clauses binding players indefinitely to one team.[6][7] These reforms addressed concerns over teams losing young, homegrown talent without compensation, evolving from earlier partial free agency models like the NFL's 1989 Plan B system into the structured RFA framework seen today.[8] Prior to this, the reserve clause dominated, limiting player movement almost entirely until legal challenges in the 1970s paved the way for graduated free agency rights.[6] Generally, RFA status applies to players who have accrued 3 to 7 years of service time, are under age 27 or 28, and have completed rookie or entry-level contracts, though exact thresholds vary by league.[3][9] League-specific eligibility details are outlined in their respective sections.Comparison to unrestricted and exclusive rights free agency
In professional sports leagues such as the NFL, NHL, and NBA, unrestricted free agency grants players with sufficient experience the full freedom to negotiate and sign contracts with any team without interference from their prior club, typically requiring at least four accrued seasons in the NFL or seven accrued seasons (or age 27 and older) in the NHL.[1][3] Unlike restricted free agency, where the original team holds matching rights, unrestricted free agents face no such restrictions or compensation obligations for signing elsewhere, allowing greater mobility for veterans but limiting access to this status until service thresholds are met.[2] In the NFL, exclusive rights free agency applies to players with minimal tenure, such as fewer than three accrued seasons, enabling the original team to retain control by tendering a one-year contract at the league minimum salary, after which the player cannot negotiate with other teams.[1] This NFL-specific mechanism provides teams with near-absolute retention power over early-career talent by eliminating external negotiation options, differing from restricted free agency. In the NBA and NHL, players with minimal service time are typically retained through entry-level contracts and do not become free agents until completing those deals, offering no market exploration until restricted or unrestricted status.[2] The restricted free agent status strikes a balance between these extremes, providing players with the ability to solicit offer sheets from other teams—leveraging the right of first refusal held by their original club—while exposing them to the risk of stagnation if the offer is matched, a vulnerability absent in unrestricted free agency where mobility is unencumbered but eligibility demands longer service.[1][3] This intermediary position empowers emerging players to secure better deals but often results in retention by the incumbent team, unlike the minimal control in exclusive rights scenarios or the complete autonomy of unrestricted status. Restricted free agency evolved as a compromise in collective bargaining agreements to safeguard teams against prematurely losing developing talent to competitors, emerging prominently in the NFL's 1993 labor settlement following earlier partial reforms like Plan B, while prioritizing veteran mobility through unrestricted provisions in contrast to the prior reserve system's indefinite bindings.[6] Similar structures were adopted in the NHL and NBA to balance player rights with competitive equity, preventing the talent drain seen in pre-free agency eras.[2]National Football League (NFL)
Eligibility requirements
In the National Football League (NFL), a player qualifies as a restricted free agent (RFA) upon completing exactly three accrued seasons, during which their contract expires without an extension or remaining guaranteed years. An accrued season is credited to a player for any regular season in which they were on full pay status for at least six games, including time spent on the active roster, inactive list, injured reserve, or physically unable to perform list.[9][10] This eligibility applies specifically to players emerging from rookie contracts or subsequent deals that have fully lapsed, meaning no outstanding contract terms bind them to their original team. Players who have signed extensions or multiyear deals with guaranteed portions beyond the current season do not qualify, as their contracts remain active.[1] As of the 2025 league year, the three-accrued-season threshold for RFA status remains unchanged under the current collective bargaining agreement, which extends through 2030; players reaching four or more accrued seasons transition directly to unrestricted free agency upon contract expiration.[9][10] Players with fewer than three accrued seasons, including those primarily on practice squads without meeting the six-game threshold, are ineligible for RFA status and instead qualify as exclusive rights free agents if tendered a minimum-salary offer by their team.[1][10]Tender types and amounts
In the National Football League (NFL), teams retain restricted free agents (RFAs) by issuing one of several qualifying tender offers, each specifying a one-year contract salary and potential draft pick compensation if the player signs an offer sheet with another team that the original team declines to match.[9] These tenders must be submitted to the league office no later than 4:00 p.m. ET on March 12, 2025, coinciding with the start of the 2025 league year.[1] The lowest tender is the right of first refusal (RFR) tender, which offers a one-year contract at a minimum salary of $3,263,000 for 2025.[9] This tender grants the team the right to match any offer sheet signed by the player with another club but provides no draft compensation if the player departs unmatched.[1] A step up is the second-round tender, providing a one-year salary of the greater of $5,346,000 or 110% of the player's 2024 Paragraph 5 salary (the base salary plus certain incentives).[9] If unmatched, the original team receives a second-round draft pick as compensation in the subsequent NFL Draft.[1] The highest standard tender is the first-round tender, offering a one-year salary of the greater of $7,458,000 or 110% of the player's prior-year salary.[9] Unmatched offer sheets result in the original team receiving a first-round draft pick.[1] For drafted players, the original round tender applies, setting the one-year salary at the greater of $3,406,000 or 110% of the prior-year salary and providing draft compensation in the player's original draft round if unmatched.[9] This tender is particularly relevant for first-round draft picks, where the compensation would equate to a first-round selection, though teams often opt for the higher first-round tender for greater salary protection.[1]| Tender Type | Minimum 2025 Salary (or 110% Prior-Year) | Draft Compensation if Unmatched |
|---|---|---|
| Right of First Refusal | $3,263,000 | None |
| Original Round | $3,406,000 | Pick in player's original round |
| Second-Round | $5,346,000 | Second-round pick |
| First-Round | $7,458,000 | First-round pick |
Negotiation and resolution outcomes
In the National Football League (NFL), restricted free agents (RFAs) become eligible to sign offer sheets with other teams starting at 4:00 p.m. ET on March 12 each year, marking the beginning of the offer sheet period that extends until April 18.[9] Upon signing an offer sheet, the RFA's original team receives a seven-day window to decide whether to match the offer and retain the player.[9] This matching right allows the original team to execute the identical contract terms without any salary cap relief, as the player remains on the roster under the new agreement.[1] If the original team declines to match the offer sheet, it forfeits the player and receives draft pick compensation determined by the level of the qualifying tender previously extended to the RFA. For a first-round tender, the compensation is a first-round draft pick in the subsequent NFL Draft; for a second-round tender, it is a second-round pick.[9] In contrast, no draft compensation is awarded if the RFA was tendered at the right-of-first-refusal (RFR) level, which only provides matching rights without attached picks.[1] Should a team choose not to tender an RFA at all before the start of the new league year on March 12, the player immediately becomes an unrestricted free agent, free to sign with any team without restrictions or compensation owed to the prior club.[1] Holdouts by RFAs, where players refuse to sign their tender, are uncommon due to accruing fines and lost earnings, often resolving in one-year deals at the tender amount or through trades to facilitate long-term extensions elsewhere.[11] Offer sheets for NFL RFAs remain historically rare due to the deterrent effect of potential draft pick compensation and the financial risks involved for pursuing teams.[9]National Hockey League (NHL)
Eligibility and qualifying offer process
In the National Hockey League (NHL), a player qualifies as a restricted free agent (RFA) upon the expiration of their entry-level contract if they are under 27 years of age as of July 1 or have fewer than seven accrued NHL seasons, with an accrued season defined as participation in at least 40 NHL regular-season games during that year (30 games for goalies).[12][13] Players still serving entry-level contracts are excluded from RFA eligibility until those agreements conclude.[14] To maintain rights to an RFA, the player's incumbent club must extend a qualifying offer (QO), which consists of a one-year standard player contract determined by the player's base salary from the prior season. The QO amounts to 110% of that salary if it was $660,000 or less, 105% if between $660,001 and $1,000,000 (but not less than $1,000,000), or 100% if higher (but not less than $1,000,000); these rules apply to all players, including goalies.[15][16] Clubs must issue QOs by the later of June 25 or the Monday following the NHL Entry Draft; for the 2025 offseason, this fell on June 30 at 5:00 p.m. ET.[17][18] With the 2025-26 salary cap established at $95.5 million, actual offers remain constrained by the player's historical compensation and cap realities.[19][20] If a club fails to issue a QO, the player automatically becomes an unrestricted free agent (UFA) effective July 1.[12] An unsigned QO preserves the player's RFA status, but failure to reach an agreement by December 1 renders them ineligible to play in the NHL for the remainder of that season.[3] RFAs who have received a QO may field offer sheets from other clubs beginning July 1, unless they elect salary arbitration by July 5, granting their original team the right of first refusal.[14][21]Salary arbitration option
In the National Hockey League (NHL), salary arbitration serves as a key mechanism for restricted free agents (RFAs) to resolve contract disputes with their teams when negotiations stall. Only Group 2 RFAs—those not eligible for unrestricted free agency—are permitted to participate, and eligibility is determined by professional experience accrued since signing their entry-level contract. Players who signed their entry-level deals at ages 18, 19, or 20 require four professional seasons (defined as playing at least 10 games in the NHL or 30 games in the American Hockey League in a given season); those signing at age 21 need three seasons; players signing at ages 22 or 23 need two seasons; and those 24 or older need just one season.[22][23] Eligible RFAs who remain unsigned by their qualifying offer deadline may elect salary arbitration by submitting a filing to the NHL Players' Association no later than July 5 at 5:00 p.m. ET each offseason. Teams also have the right to elect arbitration for unsigned RFAs by July 6 at 5:00 p.m. ET, particularly if the player's prior-year salary exceeded $1.75 million, allowing the team to bypass issuing a qualifying offer in some cases. Once elected, both the player and team must submit proposed salary figures—either for a one-year or two-year contract—typically by late July, with the maximum term limited to two years unless the player is one season from unrestricted free agency, in which case only a one-year award is possible.[24][25][26] The arbitration process unfolds through a hearing before a neutral arbitrator, scheduled between July 20 and August 4, where both parties present evidence including comparable player contracts, performance statistics, and market value arguments. This format employs "final-offer" arbitration, meaning the arbitrator must select one of the submitted salary proposals in full, without compromise or averaging the figures. Hearings are confidential, lasting up to four hours, and focus solely on salary determination, excluding non-monetary issues like bonuses or no-trade clauses.[24][22][27] The arbitrator's decision, issued shortly after the hearing, is binding and establishes the contract terms for the awarded duration. In player-elected cases, if the average annual value reaches or exceeds $4.85 million for the 2025-26 season, the team may elect to walk away within 24 hours, rendering the player an unrestricted free agent; otherwise, the team must sign the player to the awarded deal. In team-elected arbitrations, the player has no walk-away option and must accept the outcome. Awards count fully against the team's salary cap without acceleration or deferral provisions.[24][28][26] Several limitations apply to the process: players cannot file for arbitration if they have already signed a contract that season or if they are awaiting a team-elected filing; additionally, arbitration eligibility is voided for those who signed an offer sheet with another team. Annually, approximately 20-30% of eligible RFAs pursue arbitration, as seen in 2025 when 11 of roughly 50 unsigned RFAs filed, though most cases settle before hearings through continued negotiations.[24][23][29] As of 2025, the recently announced extension of the collective bargaining agreement—effective from the 2026-27 season through 2030-31—introduces no significant alterations to the salary arbitration framework, maintaining the existing eligibility, procedural, and outcome rules while confirming that cap hits from awards remain fully applicable to team payrolls.[30]Offer sheets and team rights
In the National Hockey League (NHL), restricted free agents (RFAs) who have received a qualifying offer from their original team become eligible targets for offer sheets from other clubs starting on July 1 and continuing until December 1 each offseason.[31] An offer sheet is a binding contract proposal that must have a minimum term of two years, with the average annual value (AAV) determining the draft pick compensation owed to the original team if it declines to match. The AAV for compensation purposes is calculated by dividing the total contract value by the lesser of the contract length or five years, ensuring longer deals do not disproportionately inflate the tiers.[32][13] Upon signing an offer sheet, the original team has a seven-day window to decide whether to match the terms. If matched, the player remains with the original team under the new contract, though trade restrictions apply for one year following the match. If the original team declines, the signing team forfeits draft picks to the original team based on the offer sheet's AAV, with no cash compensation involved. The compensation structure for the 2025 offseason, adjusted annually based on league salary averages, features the following tiers:[33][34]| Offer Sheet AAV Range | Compensation Draft Picks |
|---|---|
| $1,544,424 or less | None |
| $1,544,425 – $2,340,037 | Third-round pick |
| $2,340,038 – $4,680,076 | Second-round pick |
| $4,680,077 – $7,020,114 | First- and third-round picks |
| $7,020,115 – $9,360,152 | First- and second-round picks |
| $9,360,153 – $11,700,190 | Two first-round, one second-round, one third-round picks |
| Over $11,700,190 | Four first-round picks |