Posts Tagged ‘ Signing bonus ’

NFL CBA Series: Proven Performance Escalator

Saints Tight End Jimmy Graham

Saints Tight End Jimmy Graham

The Proven Performance Escalator (PPE) rewards draft choices from later rounds for contributions that exceed their draft slot. The PPE is a part of all rookie Player Contracts for anyone selected in the third through seventh rounds. First- and second-round draft choices, along with undrafted free agents, do not qualify for the PPE (Art. 7, Sec. 4, (a-b), 28). Continue reading

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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

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

NFL CBA Series: Dead Money and Acceleration

Manning-on-sideline-1

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

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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