What is the 25% Rule for rookies?

The 25% Rule for rookies refers specifically to the limitations placed on how much a rookie's salary can increase from year to year within their rookie contract. This rule is designed to create a structured and balanced approach to rookie contracts in the NFL. According to this rule, a rookie's salary cannot increase by more than 25% in any given year unless they are earning the minimum salary.

This means that teams must adhere to this guideline when negotiating salary increases for rookies, ensuring that there is a cap on how much their earnings from the contract can escalate each year. As such, it fosters a level of control for teams over their payroll and also ensures fairness and consistency across rookie contracts.

The other options do not accurately reflect the rule or the regulations governing rookie contracts in this context. Hence, understanding that the 25% increase limit is pivotal for managing salary cap effectively in relation to rookie contracts is crucial for grasping the dynamics of salary negotiations in the NFL.