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Incentive Clauses, etc.


The Avenger

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Just wondering if anyone knows how thing like incentive clauses, roster bonuses, etc. are accounted for in the salary cap.

 

If a guy has lots of money tied up in incentives tied to on-field performance, how do you know what his cap number is? If he makes most or all of his incentives he probably makes big bucks, but if he doesn't what you pay him is much less - anyone know how they figure that out so they can report an accurate cap figure?

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A lot of that information is not known, since much of it is not made publicly available. All of it is factored into the cap hit, though, which is why most cap reporting sites give approximations. Probably because a player wouldn't want it publicly known how much money was left on the table because they didn't meet expectations.

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Just wondering if anyone knows how thing like incentive clauses, roster bonuses, etc. are accounted for in the salary cap.

 

If a guy has lots of money tied up in incentives tied to on-field performance, how do you know what his cap number is? If he makes most or all of his incentives he probably makes big bucks, but if he doesn't what you pay him is much less - anyone know how they figure that out so they can report an accurate cap figure?

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I'm not 100% sure, but I believe incentive $$ counts agains the NEXT year's cap...except for incentives which the player is "likely" to earn...which count against the current year.

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I know there are two types of incentive clauses - those deemed "likely to reach" and those deemed "unlikely to reach". Those that are "likely to be reached" are counted in the cap, the unlikely ones aren't until they are reached.

 

I don't know how adjustments are made to this, or what year they count in if reached. I do remember Doug Flutie reaching some of the unlikely ones and he had to have his contract reworked mid-year to keep the bills under the cap.

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I'm not 100% sure, but I believe incentive $$ counts agains the NEXT year's cap...except for incentives which the player is "likely" to earn...which count against the current year.

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I think a player has a better shot against the IRS with all their crazy rules that against the NFL and the NFLPA.

 

Were I a player, I'd demand cash every week, and my future bonus $$$ deposited into an escrow account. :devil:

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I'm not 100% sure, but I believe incentive $$ counts agains the NEXT year's cap...except for incentives which the player is "likely" to earn...which count against the current year.

609709[/snapback]

 

 

The "Dean" is correct - the $$$ apply to the next season's cap

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I know there are two types of incentive clauses - those deemed "likely to reach" and those deemed "unlikely to reach". Those that are "likely to be reached" are counted in the cap, the unlikely ones aren't until they are reached.

 

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Right, only the LTBE (likely-to-be-earned) incentives are counted in the cap. Also, if the LTBE clauses turns out not being reached in the end of the season, teams will get extra cap in the following year.

 

I remember Vikings was awarded 10 million cap space two years ago because many players didn't reach their LTBE clauses. Vikings then used that extra 10 million cap to sign A.Winfield with a contract having no signing bonus and a big first-year roster bonus (only counted against the cap in the same year).

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Due to the presence of an "uncapped" 2007.....NLTBE's earned in 2006 automatically become LTBE and count at time earned on 2006 cap. If a player has a LTBE that counts on 2006 and cannot earn the LTBE, the team is immediately credited that amount on 2006 cap at time player fails to earn it.

 

Other things that the "uncapped" year affect:

 

1) Only can have proration 3 yrs past final capped yr, thus only 4 yrs of spreading out signing bonuses (2006-2009)

 

2) 30% rule for salaries

 

3) No June 1st rule.....player released at any time, ALL remaining proration accelerates onto 2006 cap.

 

 

Of course, if/when extension of CBA is complete, these are likely to change

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Due to the presence of an "uncapped" 2007.....NLTBE's earned in 2006 automatically become LTBE and count at time earned on 2006 cap. If a player has a LTBE that counts on 2006 and cannot earn the LTBE, the team is immediately credited that amount on 2006 cap at time player fails to earn it.

 

Other things that the "uncapped" year affect:

 

1) Only can have proration 3 yrs past final capped yr, thus only 4 yrs of spreading out signing bonuses (2006-2009)

 

2) 30% rule for salaries

 

3) No June 1st rule.....player released at any time, ALL remaining proration accelerates onto 2006 cap.

Of course, if/when extension of CBA is complete, these are likely to change

610219[/snapback]

 

 

Who's better than you, dude? Keep that great info coming! Thanks

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