Sometime during the weeks follow this year’s NFL draft, the league will announce each team’s “Year One Rookie Allocation” (formerly known as the “Rookie Pool” or “Rookie Salary Cap”). This is an oft misunderstood number, because while it is part of the team’s Salary Cap, it does not have a dollar-for-dollar impact on the team’s overall Salary Cap.

The Rookie Salary Cap is often referred to as “a cap within a cap” because it limits the amount that teams can allocate to their rookies in the year they were drafted. But, beyond that, there is a lot of confusion about the Rookie Salary Cap and exactly how it works.

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