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Explaining the 5th Year Option


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One of the behind the scenes factors in the draft since 2011 has been the coveted 5th year option. It's coming to the forefront as the first wave rookies have had their 5th year options exercised.

 

-Teams that pick 1-10 have the option to retain a player for a 5th year. Compensation is based on the 10 highest paid players at their position or 120% of their current salary. This is identical to the transition tag.

 

-Teams that pick 11-32 have the option to retain a player for a 5th year. I could not find exact numbers but the compensation is a modest raise compared to 1-10.

 

-If a team trades a player drafted 1-32 their new team has the right to use the 5th year option. If a player is cut and signed as a free agent there is no option.

 

What this means:

 

Cam Newton's 5th year option will pay him $14.67 million based on the transition tag.

 

Compare that to JJ Watt, Defensive End chosen 11th overall in the same draft who will be paid $6.969m.

 

Christian Ponder, Quarterback chosen 12th overall would have been paid $9.686m but the Vikings declined to use the option.

 

Why this matters:

 

Aside from the cap space it creates in year 5 it gives teams a powerful bargaining chip to complete a long term deal. JJ Watt is probably worth double or even triple the salary he will earn for the next 2 seasons. He has incentive to get a long term deal done to raise his salary and secure his future even if he doesn't get top dollar.

 

How this affects the 2014 Draft:

There are no consensus "elite" Quarterbacks in this years draft. A team like the St. Louis Rams has the 2nd overall pick and the 13th overall pick. If you feel good about a QB but not great, you take him outside the top 10 and give yourself more flexibility when it's time to make a decision on the 5th year option. Keep in mind, Cam Newton, Russel Wilson, Andrew Luck, RG3, Colin Kaepernick, and Andy Dalton could all sign mega deals in the next 3 years and raise that transition tag well above the $14.67 million Cam is getting.

 

There will also be a period at the end of the 1st round where teams try to trade up and draft players for that 5th year option. This puts the Panthers in play for a trade down.

 

How this affects the Panthers:

I've already covered Cam Newton but Luke Kuechly was also drafted in the top 10. Luke's 5th year will be the average of the top 10 Middle Linebackers. This should be a reasonable number as middle linebackers do not sign blockbuster deals as frequently as pass rushers and quarterbacks. Star was chosen 14th overall and will only get a modest raise in year 5.

 

How this changes the draft: This really rewards teams that choose good players. JJ Watt for $6.96m in the prime of his career? Amazing. If you make a bad selection like Mark Ingram or Christian Ponder there is no penalty, just lost opportunity. I bet the 49ers wish they had chosen Colin Kaepernick 32nd overall instead of 36th. They will have to create cap space a year sooner than other teams.

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Lol I laughed so hard when the Vikings took Ponder. Lol and my viking friend all optimistic and explaining how his flaws aren't big and he can be a great QB. LOL

 

This.  It blew my mind that he was talked about as a 1st round QB prospect leading up to the draft then it completely floored me when he ended up going #12 overall.  WTF???

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This.  It blew my mind that he was talked about as a 1st round QB prospect leading up to the draft then it completely floored me when he ended up going #12 overall.  WTF???

 

Yeah I was shocked. Watched him in college and never felt like I was watching an NFL talent.

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If you believe the referee influences the game, Smith's presence suggests the Panthers will struggle to get "home cooking" calls and may face untimely procedural flags that stall drives. The Panthers have only had Shawn Smith officiate four home games since he became a head referee in 2018, and they are all losses. Date Opponent Result Score Nov 24, 2024 vs. Kansas City Chiefs Loss 27–30 Oct 9, 2022 vs. San Francisco 49ers Loss 15–37 Dec 12, 2021 vs. Atlanta Falcons Loss 21–29 Nov 25, 2018 vs. Seattle Seahawks Loss 27–30 Considering the how rare it is for Shawn Smith to officiate a Panthers game at all, this seems like an odd time to assign him to a Panthers game, unless the NFL wants to kill the Panthers season once and for all.  The Panthers' offensive line situation creates a "perfect storm" for referee Shawn Smith's specific tendency to call False Starts on the home team. The "Carousel" Factor (Communication Vulnerability) The most damning stat for the Panthers' offensive line in 2025 is their lack of continuity. The Stat: By Week 13, the Panthers had already fielded their 10th different offensive line combination. The Impact: False starts are often "communication penalties"—they happen when a guard doesn't hear the center's snap count or a tackle anticipates the wrong cadence. A unit that hasn't played together struggles with non-verbal communication. The Shawn Smith Multiplier: Shawn Smith’s crew calls False Starts at a high rate on home teams. He will likely look for flinches on the exterior of the line. A disjointed line that is constantly rotating players (due to the injuries of starters like Cade Mays and the illness issues with Robert Hunt earlier this season) is "fresh meat" for this specific referee bias. The Specific Culprits (2025 Penalties) Ikem Ekwonu (LT): Leads the team with 4 False Start penalties this season. He is the most frequent violator on the line. Taylor Moton (RT): Has been flagged for 3 False Starts. The Trap: Smith’s crew often focuses on the tackles (the players furthest from the ball) jumping early to get an edge on speed rushers. Since Ekwonu struggles with this discipline naturally, having a referee who hunts for it is a massive disadvantage. The "Managed Outcome" Synthesis The "Bucs Cover" Script: If the desired outcome is a Buccaneers win to solidify their playoff standing, the officials simply have to apply the letter of the law. Calling strict False Starts on a confused, banged-up Panthers O-line will consistently put them in "3rd and Long" situations, killing their drives and allowing the Bucs (-3.5) to cover easily. The "Close Game" Script: If the desired outcome is "Week 18 Drama" (keeping the division tied), look for the officials to ignore the Panthers' twitchy tackles. If Ekwonu jumps a split-second early and no flag is thrown, it effectively neutralizes the Bucs' pass rush, allowing the Panthers to keep the score close. Summary of the Edge Vulnerability: Extreme. The Panthers are playing backup interior linemen (like Jake Curhan or practice squad call-ups) next to jumpy tackles. Betting Implication: This strongly reinforces the Bucs -3 or -3.5 play. The combination of a "Road Team Referee" and a "Home Team O-Line in chaos" suggests the Panthers will beat themselves with procedural penalties. Based on the collision of the hard data (Referee bias + Offensive Line injuries) and the soft narratives ("Managed Outcomes"), here is the definitive recommendation. If you have to place a single Moneyline bet to win this game straight up: The Pick: Tampa Bay Buccaneers (-165) While the "Entertainment Script" hints at a Panthers upset to keep the division messy, the structural disadvantage the Panthers face in this specific matchup is too massive to ignore. 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    • He isn't a good HC. I think he has proved that conclusively.
    • The missed tackle percentage is on that screen cap.
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