Restricted Free Agents (RFA)
A Restricted Free Agent is an NFL player who is not under contract, but has only three years of NFL experience. The signing period for restricted free agents begins on March 2 and concludes on April 15. If his previous team has made him a Qualifying Offer, then that team has a right of first refusal on the player. This means the player may negotiate with other teams and receive an offer, however the previous team may agree to the offer that the player has received, in which case the player stays with his former team. Of course there are lots of games played, the prospective new team will attempt to structure the offer so that it is very unpalatable to the new team. For example, a team with a lot of cap room can offer a large salary and small signing bonus which is difficult for another team to match. Or a team with a very bad record can offer a large bonus based on winning 10 games, which would be unlikely to be earned on the new team but perhaps likely to be earned on the original team, thus making the offer have a large cap number.
There are three levels of Qualifying Offer. Each level has an associated salary which is part of the CBA. In 2005 the three qualifying offer levels are $656,000, $1.43M, and $1.9M.
If the team offers the player the lowest qualifying salary, then that's the player's salary if he gets no offers in free agency. If he gets an offer, his current team has a choice: they can match the offer exactly, or they can let the player go, in which case they will get a draft pick from the new team which is the same as the draft pick they used to get the player. If the player was selected in the 6th round, then the old team gets the new team's 6th round draft pick in the next year. If the player was undrafted, the old team gets no draft pick.
If the team offers the player the middle level salary, then that's the player's salary if he gets no offers. If he gets an offer, then the old team can match the offer. If they do not, then the old team gets a 1st round draft pick from the new team.
If the team offers the player the top level qualifying offer, then that's the player's salary if he gets no offers. If the old team does not match an offer, then they get a 1st round and a 3rd round draft pick from the new team.