Question about bonuses/salary cap - Dallas Cowboys Forum

junk · 03-16-2005

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)?

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.

conner01 · 03-16-2005

very good question.come on adam,this one is on you.lol

Razz · 03-16-2005

Quote:

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

Quote:

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.)

jksmith269 · 03-16-2005

I thought Roster bounes counted against the cap fully the year they were earned.....For instance we see players being cut before roster bonuses are due such as sharper his salary this season was to be around 6mil but when they figured in his like 2.6 roster bonus it pushed his cap hit this season to over 8mil.......I could be wrong it would not be the first time and sure won't be the last......

playit12 · 03-16-2005

Quote:

Originally Posted by jksmith269

I thought Roster bounes counted against the cap fully the year they were earned.....For instance we see players being cut before roster bonuses are due such as sharper his salary this season was to be around 6mil but when they figured in his like 2.6 roster bonus it pushed his cap hit this season to over 8mil.......I could be wrong it would not be the first time and sure won't be the last......

Depends on how the cap is set up. What has become popular now, for instance the Skins have been doing this lately, is to give a roster bonus late in the contract, while writing into the contract the ability to later prorate the bonus at the descretion of the Front Office. The Skins had been doing this to get past the limitations placed upon the total years one can prorate a contract due to no collective Barganing Agreement being reached extended the current plan.

I believe in this case the Roster bonus is gaurenteed, but the team can then extend the bonus to spread it out at that time if it so desires.

Either way teams have the descretion to arange all bonuses the be paid either in prorated fashion over the length of the contract, or in certain years as roster bonuses, or any combination of that.

Wood · 03-16-2005

I think the question is: does a roster bonus get accelerated if the player is released before that roster bonus is realized. For example Jevon Kearse gets a 2 million roster bonus in 2005 and 2006. If he only plays a few games in 2005 and the Eagles decide to cut their losses (because his base salary ballons in 2006 and beyond) and release Kearse before June 1st of 2006.....Does the remaining roster bonus of 2 million get accelerated into 2006 cap figure. Adam...help.

Wood · 03-16-2005

the more I think about this the more I think the Roster Bonus (applies to that year) is more similar to the Base Year Salary (applies to that year) then to the signing bonus (prorated over length of contract)

playit12 · 03-17-2005

Quote:

Originally Posted by Wood

the more I think about this the more I think the Roster Bonus (applies to that year) is more similar to the Base Year Salary (applies to that year) then to the signing bonus (prorated over length of contract)

Again it just depends on how it was written into the contract. Most Roster Bonuses are not gaurenteed, in which case there is nothing to accelerate as it would only apply to the year it is due.