Posts Tagged ‘ Green Bay Packers ’

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.

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NFL CBA Series: Signing Bonus Proration

joe-flacco
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

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