View Single Post
Old 02-14-2020, 09:15 PM   #9
kccrow kccrow is offline
MVP
 
kccrow's Avatar
 

Join Date: Oct 2011
Location: Michigan
Casino cash: $3197078
Quote:
Originally Posted by InChiefsHeaven View Post
OK, I asked this in the Chris Jones thread, but I think it got lost in the shuffle.

I don't understand a few things. Where Jones is concerned, (and for that matter Mahomes) isn't there ways they can pay the dude without it counting against the cap? Like...a huge ass signing bonus. Or incentives that are lucrative and ridiculously easy to earn, like work out bonuses, or consecutively being on time for meetings, not missing practices without an excuse...

So, please educate me. I don't understand why it has to be so hard. You give a guy a healthy but not bank breaking contract, but you give them a big bonus upfront. Or, does the bonus count against the cap, along with the incentives?
Short answer it's not especially easy, but there is one way.

A signing bonus is prorated over the duration or up to the first 5 years of the contract, whichever is shorter.

An option bonus can trigger in a later year and is then prorated over the duration or up to the next 5 years of the contract, whichever is shorter.

A signing bonus and option bonus in combination are used extensively in lengthier contracts, especially for QBs. For instance, you could extend Patrick Mahomes for 5 years and in doing so create a 6 year contract. If you give him a $30 million signing bonus, he'll have $6 million count against the cap the first 5 years. You could then trigger another $30 million option bonus in year 2 that then counts $6 million against the cap for years 2-6. This creates bonus proration of $6, $12, $12, $12, $12, $6 million in the years of the contract, which helps soften the burden in the first year of the contract.

A roster bonus triggers in the year of the contract it is written for and counts in full for that year.

Per-game roster bonuses trigger on a game-by-game basis in that same year.

Incentives are classified as likely to be earned or unlikely to be earned. Likely to be earned incentives count against the cap whereas unlikely to be earned do not (hard to get these in for proven players and be realistic).

The best bet is the use of salary escalators. A salary escalator is earned based on performance in the current year and escalates the next year's salary. For instance, you can pencil Jones in at $8 million salary this year and $10 million next year. You can write in an escalator that says that if Jones gets 10 or more sacks in 2020 then he will earn at $2 million escalator in 2021. His salary is increased to $12 million. You can guarantee or not guarantee the escalator or if the escalator is in a guaranteed salary year it will also be guaranteed, etc. You can, likewise, use a de-escalator and reduce his salary if he doesn't perform. For instance, if he doesn't get at least 40 tackles, he will lose $1 million. Most contracts don't have escalators/de-escalators for "proven" players.
Posts: 12,664
kccrow 's phone was tapped by Scott Pioli.kccrow 's phone was tapped by Scott Pioli.kccrow 's phone was tapped by Scott Pioli.kccrow 's phone was tapped by Scott Pioli.kccrow 's phone was tapped by Scott Pioli.kccrow 's phone was tapped by Scott Pioli.kccrow 's phone was tapped by Scott Pioli.kccrow 's phone was tapped by Scott Pioli.kccrow 's phone was tapped by Scott Pioli.kccrow 's phone was tapped by Scott Pioli.kccrow 's phone was tapped by Scott Pioli.
Thumbs Up 2 Thumbs Down 0     Reply With Quote