Originally Posted by junk
Addressed to anyone that can answer, but obviously AdamJT13 is the expert in these areas.
How are two tiered bonuses and roster bonuses applied to the salary cap?
For example, a 5 year deal with a $10 million bonus is obviously a $2 million per year hit.
However, how about a $1 million roster bonus in year 3? Is it simply prorated over the rest of the contract (2 years)?
Short answer: yes
Long answer: it depends
How about a two tiered? $5 year deal, $5 million SB this year. $5 million bonus next year. Is this treated the same as the example above? Does this just allow a much lower cap hit in year 1?
Thanks in advance.
Roster bonuses and incentives are considered signing bonuses.
BUT .. sometimes they're not. (Don't you just LOVE caponomics?)
There are circumstances where these payments are NOT prorated and count against the cap in the year they are earned. For example, Roster or reporting bonuses earned or paid before TC are prorated ... but are not if they are earned or paid after the last preseason game, UNLESS the contract wasn't signed until after the last preseason game. Got that? No? I guess that's why so many agents are lawyers.
OK .. so how about a semi-short answer?
Roster and reporting bonuses are generally
treated the same as signing bonuses (e.g. prorated), but they can
be structured such that they aply in the season they are paid (i.e. not prorated.)