A player on the practice squad is not under contract; he is considered a free agent. He is free to sign with any team at any time, without compensation to the team on whose practice squad he plays. The team can pay him whatever it wants, although the minimum is a little over $80,000. At the conclusion of the season, a team can sign a player to a Reserve/Future contract, but that is only good until the next training camp, as far as I know. Basically, it is a way of signing a player early to the 80-man roster.
Originally Posted by: Nonstopdrivel