What does the 25% rule state regarding rookie contracts?

The 25% rule regarding rookie contracts specifies that a rookie's annual salary cannot increase by more than 25% of their Year-One salary. This regulation is part of the salary cap structure in the NFL and is designed to maintain balance and fairness among teams when it comes to managing their salary cap space. By limiting the increase in salary for rookies, the league ensures that teams can allocate their budgets more effectively and make strategic decisions regarding player acquisition and retention.

This rule helps to provide a level of consistency in player salaries during the rookie contract phase and avoids drastic increases that could disrupt the salary cap system. The other aspects of rookie salaries, such as doubling or mandated increases, don't align with the purpose of this stipulation, which is primarily about controlling the growth in salary linked to initial contracts.