Posts Tagged ‘ Discount Rate ’

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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