Posts Tagged ‘ Proration ’

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

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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

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