News: Sports Negotiations – Defining NFL contract incentives

[CCBoy]

Sports Negotiations – Defining NFL contract incentives




Gen Yers = NFL Players = Incentives


Hmmm, wouldn’t that be nice in the National Football League.

Part of Tulgan’s creed is already built into the NFL’s Collective Bargaining Agreement through incentives. I for one would like to see a more heavy use of incentives in the negotiation of NFL player contracts. Though their profession is “football player” and not paralegal, computer analyst, or data processor, the NFL player pool can’t escape the very traits that the define the generation they ALL emanate from.

Incentives fall into two distinct categories in relation to the NFL Salary Cap; “Likely to be earned” and “Not-likely to be earned”. “LTBE’s” count automatically against a Club’s Salary Cap entering into the season the incentive is tied to. If an “LTBE” is not achieved in the given season, then the Club will receive a credit of the unearned amount towards the following season’s cap number. “NLTBE’s” don’t count immediately against a Club’s Salary Cap in the given season, but are reconciled at the end of the year and deducted from the following season’s total if achieved. As per the CBA;



LTBE” Incentives – Count against the Cap

• Any and all incentive amounts, including but not limited to performance bonuses, shall be included in Team Salary if they are “likely to be earned” during such League Year based upon the player’s and/or Team’s performance during the prior year.
• Any incentive in year one of a Rookie Contract shall be deemed “likely to be earned.”
• Any incentive within the sole control of the player (e.g., nonguaranteed reporting bonuses, offseason workout and weight bonuses) shall be deemed “likely to be earned.”
• 
• Any team performance will be automatically deemed to be “Likely to be earned” if the Team met or exceeded the specified performance during the prior League Year.
• Any team performance-related incentive will be revalued under the “likely to be earned” rules if the contract is assigned to a new Team through trade or waiver.
• Any incentive bonus based on the team’s performance automatically will be deemed “likely to be earned” if it sets a minimum level of statistical performance that is equal to or lower than that achieved by the team finishing fifth from the bottom in the League in the applicable category during the previous season.
• Any incentive bonus that is based upon the team achieving a particular ranking in its performance relative either to other teams in the League, or to other teams in its Conference, automatically will be deemed “likely to be earned” if it sets a ranking level equal to or lower than fifth from the bottom of the League or third from the bottom of the Conference, respectively.
• Any incentive bonus based on the team’s ranking in its Division automatically will be deemed “likely to be earned.”
• Any incentive bonus that is stated in terms of a per play or per game occurrence automatically will be deemed “likely to be earned” to the extent the specified performance was achieved by the player (if an individual incentive) or by the team (if a team incentive) in the previous year.
• Any incentive bonus to a kicker or punter for leading his team in any kicking or punting category automatically will be deemed “likely to be earned.”
• Any roster bonus which is deemed not “likely to be earned” based upon the player’s performance during the prior year shall immediately be included in Team Salary when earned. Preseason roster bonuses are automatically deemed “likely to be earned.”

“NLTBE” Incentives – Don’t count against the Cap

• Any team performance will be automatically deemed to be “not likely to be earned” if the Team did not meet the specified performance during the prior League Year.
• 
• Any incentive bonus based on the team’s performance automatically will be deemed “not likely to be earned” if it sets a minimum level of statistical performance that is equal to or higher than that achieved by the team finishing fifth from the top of the League in the applicable category during the previous season.
• Any incentive bonus that is based upon the team achieving a particular ranking in its performance relative either to other teams in the League, or to other teams in its Conference, automatically will be deemed “not likely to be earned” if it sets a ranking level equal to or higher than fifth from the top of the League or third from the top of the Conference, respectively.

Read more: http://www.thefootballeducator.com/sports-negotiations-defining-nfl-contract-incentives/#ixzz3W6eazR4r

 

[CCBoy]

A counter argument to incentives


I ran across an article written a while back that argued incentives worked against the intrinsic motivation of team play. Dan Pink wrote about this in his book Drive: The Surprising Truth About What Motivates Us – his prescription is to pay people enough of a salary so they aren’t worried about money and then don’t get in the way of intrinsic motivation. NFL veteran and ESPN analyst Tom Jackson said, “When I played, the incentive was to play as well as you could, to go to the playoffs and get a chance to win. That was the only incentive we needed.” Jackson is 62 years old and played for the Denver Broncos from 1973-1986. Dan Pink looks at the world through his own political spectrum.

This is exactly my point. Many of the major commentators in professional football are from an entirely different generation, raised and educated under a different set of circumstances. Their views and ideas about teamwork come from a different perspective of the world and on life in general. I don’t think the players of today’s NFL think any less of their contributions towards team goals and achievement, but I do think they’re a bit more realistic about how unwavering commitment can affect personal circumstances.

Once again Bruce Tulgan, author of Not Everyone Gets A Trophy, gives a GREAT explanation with his first myth regarding Gen Y;



Myth #1: Gen Yers are disloyal and unwilling to make real commitments to their employers.

Reality: They can be very loyal. But they don’t exhibit the kind of loyalty they find in a kingdom: blind loyalty to hierarchy, tight observance of rites of passage, patience for recognition and rewards. Instead, they offer the kind of loyalty you get in a free market – that is, transactional loyalty (whatever you can negotiate).

Tulgan continues; The critical element when it comes to rewarding Gen Yers is letting them know that rewards are tied to concrete actions within their own control. This might remind you of the old-fashioned pay scheme called piecework in which individuals are paid an agreed-on amount for each defined unit of work they produce. …The key to your success will be defining those measurable pieces of work and setting a price per piece.



Prohibited incentives – “Forget about it!”

• 
• Any incentive bonus that depends on team performance in any category not identified in Exhibit A is prohibited.
• Any incentive bonus that depends on a player’s individual performance in any category not identified in Exhibit B is prohibited.
• Any incentive bonus that depends on a player’s individual performance in categories other than those used to assess performance at the player’s primary position is prohibited.
• Any incentive bonus based on a player receiving Honors or Media Recognition not listed in Exhibit C is prohibited.
• Any incentive bonus for special teams playtime is prohibited unless the player participated in at least 50% of the Club’s special teams plays in the immediately prior regular season.
• Any incentive bonus based upon another player’s performance is prohibited.
• Any incentive bonus which a player and a Club agree to that: (i) depends upon performance in any category not identified in Exhibit A or Exhibit B; and (ii) is stated in terms of per play, per event or per game, or for leading or any ranking on the Club in any such category; shall be prohibited.

Exhibit A – Team Incentives
OffenseDefenseSpecial Teams
Points scored by TeamPoints allowed by TeamOwn punt return avg
TD’s scored by TeamTD’s allowed by TeamOwn kickoff return avg
Total Offense (net yards)Total Defense (net yards)Opponent punt return avg
Avg net yds gained per rushAvg net yds allowed per rushOpponent kickoff retrun avg
Avg net yds gained per passAvg net yds allowed per pass
Sacks allowedSacks
Passing % completedInterceptions
ALL

Wins, Playoffs, Conference Championship, Super Bowl, Touchdowns on returns and recoveries, Net difference takeaways/giveaways

Exhibit B – Individual incentives

• RUSHING -Total yards,Average yards (100 attempts),Touchdowns
• PASSING -Passer rating (224 attempts),Completion percentage (224 attempts),Interception percent (224 attempts),Total yards,Yards per pass (224 attempts),Touchdown passes
• RECEIVING -Total receptions,Total yards,Average yards (32 receptions),Touchdowns
• DEFENSE –Interceptions,Interception return yards,Touchdowns on interceptionreturns,Opponent fumble recoveries,Opponent fumble return yards,Touchdowns on opponentfumble returns,Sacks
• PUNT RETURNS -Total yards,Average (20 returns),Touchdowns
• KICKOFF RETURNS -Total yards,Average (20 returns),Touchdowns
• PUNTING -Gross average (40 punts),Net average (40 punts),Inside 20-yard line
• PLACE KICKING -Total points,Field goals,Field goal percentage (16 attempts),Field goal percentage0-19 yards (4 attempts),Field goal percentage20-29 yards (4 attempts),Field goal percentage30-39 yards (4 attempts),Field goal percentage40-49 yards (4 attempts),Field goal percentage50 yards or longer (3 attempts)
• OTHERS -Roster bonuses,Reporting bonuses,Playtime bonuses(excluding special teams),Special teams playtime

EXHIBIT C – HONORS AND RECOGNIZED MEDIA

• VETERAN HONORS -PRO BOWL,ALL NFL (First and Second Team),ALL CONFERENCE (First and Second Team),SUPER BOWL MVP (ROZELLE TROPHY),NFL MVP,OFFENSIVE PLAYER OF YEAR — NFL OR CONFERENCE,DEFENSIVE PLAYER OF YEAR — NFL OR CONFERENCE,PLAYER OF YEAR — NFL OR CONFERENCE
• VETERAN MEDIA -ASSOCIATED PRESS,PRO FOOTBALL WEEKLY,PRO FOOTBALL WRITERS OF AMERICA,SPORTING NEWS,SPORTS ILLUSTRATED

Read more: http://www.thefootballeducator.com/sports-negotiations-not-everyone-in-the-nfl-agrees-with-incentives/#ixzz3W6gYeAWP

 

[skinsscalper]

Nice legwork there, CC. Thanks for posting that up.