KSMG Commentary: The CFL's Option-Year NFL Loophole

Since 1997, according to Sportsnet.ca’s Perry Lefko, the Canadian Football League has allowed in its standard player contracts an option year, which has for the past decade allowed players to play one year in the CFL and then bolt to the National Football League the next year – without consequence.

However, the new CFL collective bargaining agreement that was announced June 29 will put an end to the so-called “NFL loophole.” Now, players that sign with a CFL team will not be allowed to sign a one-and-one contract: a deal that guarantees a player’s participation for one year with a second-year player option. Though, players who have signed contracts with the CFL the past two years – those whose option years would occur in 2011 and 2012 – will still be eligible to move onto the NFL if they wish.

An example of this contract loophole in action comes from the Winnipeg Free Press’ Doug Brown:

A good example of this scenario unfolding is Winnipeg's own Jonathan Hefney. The 2009 season was his first with the Bombers and he acquitted himself very well representing the Eastern division as the rookie of the year and garnering all-star accolades. His play turned a few heads down south and now he is going to camp with the Detroit Lions in 2010.

If he gets cut he will remain Winnipeg property for one final year, but if he makes the team his CFL deal becomes null and void.

In January of this year, The Sports Network, Canadian’s equivalent to ESPN, had a poll asking its readers whether "the NFL signing window is good for the CFL?” The responses were about 50/50.

Many people believe the option-year provides the league with more interest from non-Canadians because the top CFL players could be tomorrow’s NFL breakout stars.

They also say the option-year gives the CFL more credibility among players so that college players that don’t make it in the NFL will view the CFL as the second-best option for their professional football dreams.

With a fierce competitor now rising in the United States in the form of the United Football League, some fear the closing of the option-year will dissuade college players from playing in the CFL. Subsequently, the CFL – traditionally viewed as the second-best professional football league in the world – will be bumped to third after the UFL.

However, others say the eliminating the option-year gives the CFL fewer roster oscillation, and thus, the CFL benefits from a better product on the field. They also argue that forcing a player to play one extra year in the CFL has no consequence on that player’s future. If they are good enough, the NFL will still be there after year two.

For the KSMG clients currently playing in the CFL, the new rule has no affect on them as they already have signed their contracts before the new rule became ratified. However, for future KSMG clients, they will no longer be able to sign a one-and-one contract and now will have to play in the CFL for two years before attempting to play in the NFL.