Carl GrahamOn May 3, 2026, Seth McGowan's phone rang. The 24-year-old running back from Kentucky heard the Indianapolis Colts on the line — they had just selected him 237th overall, in the seventh round of the NFL Draft. Five days later, he signed his rookie contract. What that contract actually says, and what legal rights a late-round pick holds, is something most players only learn the hard way.
McGowan arrives in Indianapolis with real credentials: 12 touchdowns in his final college season, 165 carries for 725 rushing yards, and a bruising 223-pound frame that quickly made him the leading candidate for the backup role behind All-Pro running back Jonathan Taylor. Scouts and beat writers already label him the steal of the Colts' draft class. But the $885,000 base salary figure circulating in fantasy football write-ups tells only part of the story — and the missing part is the one that determines whether a career-ending injury in Week 1 leaves a player financially protected or financially exposed.
The Deal Behind the Draft Day Phone Call
Every player selected in the NFL Draft signs what is known as a "Slotted Rookie Contract." Under the 2020 NFL Collective Bargaining Agreement (CBA), drafted players have almost no ability to negotiate the financial terms of their first deal. The salary is set by pick position — the 237th pick earns precisely what the CBA scale dictates, not a dollar more or a dollar less.
For McGowan, that means a four-year contract at the minimum salary level, with a signing bonus typically in the $100,000 to $175,000 range for picks in his draft slot. The yearly base salary in 2026 for players with zero credited seasons is $885,000 — a figure that, while impressive compared to most careers, is subject to federal and state income taxes, NFLPA dues, and agent fees that can reduce take-home pay by 40 to 45 percent.
What many players miss entirely: only first-round picks receive a fifth-year team option. Everyone else — rounds 2 through 7 — is on a true four-year deal, and no renegotiation is permitted before the start of Year 4. For a 7th-round pick competing for a backup roster spot, that four-year window is almost entirely theoretical. The practical question is whether Year 1 protections are strong enough to matter.
What a Sports Lawyer Sees When They Read McGowan's Contract
A sports attorney reviewing any late-round rookie contract would immediately focus on three pressure points that no sports media outlet covers.
The first is offset language. If McGowan is released before his contract expires and signs with another team, does Indianapolis retain the right to offset whatever the new team pays against any remaining guaranteed money? Seventh-round contracts in 2026 typically carry minimal guarantees — sometimes only the signing bonus, sometimes nothing beyond Day 1 of training camp. Without an attorney pushing for "no-offset" language during the brief negotiation window that does exist, a player can be released with almost no financial protection from what is effectively a multi-year verbal promise.
The second is injury guarantee scope. The standard NFL contract includes a clause that voids salary guarantees if a player is injured during activities the team does not formally sanction. If McGowan were to suffer a significant soft-tissue injury training at his own facility in late June — outside of organized team activities — he could find himself without guaranteed salary for the remainder of his contract term. A sports lawyer would negotiate for a broader injury protection window, one that covers off-season workouts regardless of venue. This is something rookie agents frequently deprioritize when representing a 7th-round client.
The third is roster bonus structure. Teams increasingly build late-round contracts around per-game active roster bonuses — typically $8,500 to $14,000 per game — that only accrue when a player is on the active 53-man roster for that week's game. Whether those bonuses are classified as "likely to be earned" (LTBE) or "not likely to be earned" (NLTBE) under the CBA has direct implications for both the team's salary cap accounting and the team's financial incentive to keep a player active week to week.
The $885,000 Contract in Practice: A Concrete Scenario
Here is what McGowan's contract looks like beyond the headline number — a realistic breakdown for a 237th overall pick under the 2026 CBA:
- Year 1 base salary: $885,000
- Signing bonus: approximately $135,000 (prorated over 4 years = $33,750/year against the cap)
- Total contract value: approximately $3.8 million over four years at minimum scale
- Guaranteed money: typically only the $135,000 signing bonus, unless injury guarantees were negotiated
Now apply a straightforward if/then:
If McGowan makes the 53-man roster and remains active for all 17 regular-season games, he earns his full base salary plus per-game bonuses — roughly $1.0 million gross in Year 1. After federal income taxes, Indiana state income taxes (3.05%), NFLPA dues (approximately $10,000 annually), and a standard 3% agent commission, his net take-home is approximately $570,000.
If he is cut before the season opener, the only money he keeps is whatever portion of the signing bonus has already been paid out. In the worst case — a release on the final roster cut day — that is $135,000, with zero additional base salary.
If he suffers a non-contact knee injury during a sanctioned preseason practice, he is entitled to injury protection salary: typically 50% of his base, meaning roughly $442,500 for the season, provided the injury occurred during a team-authorized activity and his contract includes standard injury protection language.
The gap between $570,000 net and $135,000 total hinges on a few contract clauses that fit on two pages. That is precisely the scenario where independent legal counsel — not just a certified agent — becomes financially meaningful for a player.
Legal disclaimer: This article provides general information about NFL contract structures and is not a substitute for licensed legal advice. Players navigating specific contract terms should consult a qualified sports attorney.
Three Contract Rights Every Late-Round Pick Should Exercise Before Training Camp
Sports lawyers who represent late-round clients describe the same recurring pattern: the draft call comes, the player is thrilled, and the paperwork follows within days. By the time anyone pauses to read the document carefully, camp has started. Here is what they recommend before that happens.
Request the offset language in writing. Seventh-round teams are often willing to include "no-offset" provisions for players they believe have roster potential. It costs the team nothing if the player never gets cut, and it provides the player with meaningful protection if things go sideways. Most players never ask.
Clarify what is guaranteed beyond the signing bonus. For a backup running back competing for a roster spot, the honest answer from most teams is: nothing beyond the signing bonus survives a non-injury cut. But knowing this explicitly — rather than assuming — lets a player make informed decisions about off-season training, agent selection, and financial planning.
Retain an independent contract attorney in addition to a certified agent. The NFLPA certifies contract advisors who are authorized to negotiate NFL player contracts. But players also have the right to consult an independent sports attorney before executing any agreement. Many late-round picks skip this step, often because no one explains it is available. An hour of legal review before signing can surface issues that a 3-percent commission structure may not incentivize an agent to raise.
McGowan's story at the Colts is still being written. His preseason performance — 74 scrimmage yards across three games — suggests he has earned a genuine shot at the No. 2 role. But the contract he signed on May 8, 2026, will govern his legal and financial rights for up to four years, regardless of how the competition plays out.
Every 7th-round pick in the 2026 draft signed a contract with the same structural features. How well each player understands what they signed is, in many cases, the difference between navigating an NFL career with financial clarity — and without it.
If you are navigating a professional contract — in sports, entertainment, or any specialized field — a qualified attorney can clarify what you are actually agreeing to before you put your name on the document. Find contract attorneys and legal experts who specialize in reviewing first-time professional agreements at ExpertZoom.
