Posts Tagged ‘ deferred compensation ’

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

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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

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