For a five-year contract negotiated by a contract advisor, what is the advisor’s fee based on?

The correct answer is that the advisor’s fee for a five-year contract is based on the annual salary each year. This approach reflects the industry practice where contract advisors typically receive a percentage of the player's salary on an annual basis rather than a lump sum based solely on the first year, total contract value, or only increases.

By basing the fee on the annual salary each year, it ensures that the advisor's compensation aligns with their contribution to negotiating the totality of the contract. This means that as the player's earnings increase or decrease in subsequent years, the advisor's fee likewise adjusts based on those specific annual salaries. This practice promotes fairness and provides ongoing incentive for the advisor to continue supporting the player throughout the contract term.

While the other options highlight different aspects of contract valuation, they do not accurately represent the standard practice of calculating an advisor's fee in the context of NFL contracts. Focusing only on the first year’s salary, total salary, or negotiated increases would not reflect the dynamic nature of contract negotiations and compensation structures within the league.