Archive for the ‘ Player Compensation ’ Category

NFL CBA Series: Pro Bowl Compensation

Peterson splitting defenders in the 2008 Pro Bowl.

Peterson splitting defenders in the Pro Bowl. (Photo credit: Wikipedia)

A week before the league’s—more appropriately, the world’s—biggest game, the NFL’s annual Pro Bowl puts the league’s biggest stars between the same white lines. Although Super Bowl participants and more than a few others miss the game, the game still has a certain allure to it.

Sure, many fans will speak of the lack of effort. Football philosophers will point to the simplicity and lack of execution. Players will point to the hula dancers and the beaches. NBC will refer you to the fact that they still generate huge TV ratings for the broadcast.

Since I know we all care about the Pro Bowl game, here are the rules concerning the game according to the NFL’s CBA. Continue reading →

2013
06/13
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NFL CBA Series: Credited vs. Accrued Seasons

English: Mike Vick with Philadelphia

English: Mike Vick with Philadelphia (Photo credit: Wikipedia)

In the NFL, experience is worth more than its impact on the field. It can affect a player’s pocketbook, as well as his benefits when he leaves the game.

The NFL determines the experience of its veterans through two different processes: Credited Seasons and Accrued Seasons. Though the two involve similar parameters to meet the experience requirements, they are used for different purposes. Continue reading →

2013
05/29
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NFL CBA Series: Deferred Compensation

Mario Williams as a member of the Texans.

Mario Williams as a member of the Texans.

Deferred salary is compensation earned at a certain time or in a prior League Year that is to be paid at a later time. This money counts towards the cap in the year it is secured. The money will be charged at present value as calculated by the Discount Rate provided by the Wall Street Journal or the Federal Reserve (CBA, 1).

Deferred salary is exactly what it sounds like: players receive money for services already rendered for previous seasons. A team and player can agree to defer any type of compensation. Continue reading →

2013
05/29
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NFL CBA Series: Minimum Salaries

Alfred Morris' home-run swing.

Alfred Morris’ home-run swing. (Photo Credit: Photobucket.com)

Though this article of the CBA is titled “Salaries,” its focus is on the minimum salaries a player with a particular amount of Credited Seasons is entitled to.

While the Joe Flacco’s and Aaron Rodgers’ of the League set the ceiling (at least temporarily), this Article sets the salary floor. The average employee may look at these yearly salaries as if these players are set for the rest of their lives, forgetting that the average NFL career is only three years long. Continue reading →

2013
05/29
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NFL CBA Series: Split Contract

English: Ryan Grant takes a handoff from Aaron...

English: Ryan Grant takes a handoff from Aaron Rodgers (Photo credit: Wikipedia)

 

 

When a player is not on a team’s Active or Inactive List, the team can reduce that player’s salary due to his services being unavailable (i.e. on a team’s Injured Reserve list). Many young players, typically late-round draft picks, will sign what are referred to as Split Contracts to reduce the financial burden to teams when a player isn’t able to take the field.

Continue reading →

2013
05/29
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NFL CBA Series: Other Bonuses

 

English: New York Jets' cornerback Darrelle Revis

English: New York Jets’ cornerback Darrelle Revis (Photo credit: Wikipedia)

Though a player’s signing bonus is the most covered part of a player compensation package, a player can also earn other types of bonuses. Any bonus that is guaranteed for skill, cap, and injury is subject to proration rules like a signing bonus.

Roster Bonus

The roster bonus is another of the more publicized bonuses. The end of the Peyton Manning Era in Indianapolis came due to a $28 million roster bonus the Colts would have owed Manning had he still been on the team March 8, 2012. Continue reading →

2013
05/29
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NFL CBA Series: Signing Bonus

The Lambeau Leap never felt so good.

The Lambeau Leap never felt so good.

A signing bonus one of most mainstream forms of player compensation. The term is often utilized in sports media when discussing new player contracts. A signing bonus is guaranteed (subject to some forfeiture provisions) and is often referred to as the only guaranteed money for NFL employees.

Signing bonuses are lump sums awarded to a player when he signs his contract.

Though a player does technically earns his this bonus right away, sometimes players will defer some of this money, receiving it in payments over time. Continue reading →

2013
05/29
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NFL CBA Series: Dead Money and Acceleration

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In order to speak on acceleration, I believe it necessary to first explain “dead money.” It is essentially cap space that a team has already been dedicated to a player (through bonus or guarantees).

Since all salary a player receives must eventually count against the cap, any salary a team has paid (or later fully guaranteed money) that has yet to count against the salary cap is dead money. It’s the League’s way of ensuring a team allocates the money it has spent to the cap. Otherwise, how would it truly be a hard-cap league? Continue reading →

2013
05/29
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NFL CBA Series: Paragraph 5 (P5) Salary

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Anyone who pays attention to ESPN or NFL Network’s coverage of the NFL has heard the term “base salary.” Surely, most football fans have heard the term “game check” as well. In CBA terms, this is commonly referred to as a player’s Paragraph 5 (P5) Salary because it is set forth in the fifth paragraph of the standard NFL Player Contract. Continue reading →

2013
05/29
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NFL CBA Series: Signing Bonus Proration

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Signing bonuses and other amounts with the same designation do not have to count directly against a team’s salary cap in the League Year they are paid. These amounts can be spread over the life of a Player Contract up to a maximum of five years (Art. 13, Sec. 6, I, 93).
Though the team can pay the player the entire payment at once, for salary cap purposes the figure is reduced to make a large signing bonus manageable under the cap. The Packers would have had to gut a good portion of their roster to afford Aaron Rodgers’ $35 million signing bonus this season. The same goes for the Ravens and quarterback Joe Flacco. Continue reading →

2013
05/29
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