More Links

DTX3 · 07-01-2004, 02:09 PM

In the contract what is backload?

JohnnyKilroy · 07-01-2004, 02:15 PM

As the name implies...a large bulk of the player's salary is to be paid in the last few years (back) of the contract. It's cap-friendly, good for the organization managing the salary cap; not so attractive for players seeking big $$, because players almost always become salary cap casualties before they even reach those lucrative years. That's why players are always out to get the biggest signing bonus possible, because that is all that's guaranteed...

Bondra12 · 07-01-2004, 02:16 PM

Quote:

Let's imagine we have a player named Ed Zample and he signed a contract with the Falcons. The terms of the contract are that Ed signed a five year contract with a signing bonus of $5 million and the total worth of the contract if $13 million. Here are the base salaries in Ed's contract:

Year 1: $500,000
Year 2: $1,000,000
Year 3: $1,500,000
Year 4: $2,000,000
Year 5: $2,500,000

This is common in the NFL. It is called a backloaded contract. Ed will receive $7.5 million in base salary, but instead of prorating that evenly over the course of the contract ($1.5 million per year), teams typically design it so that the lowest cap hit occurs initially and it increases annually.

Here you go.

jordan0386 · 07-01-2004, 02:17 PM

putting alot of money toward the later yrs of a deal

say i sign for 5 yrs at 6 million per...

since im scheduled to make 12 million over the first two yrs...i can make 4 million over the first two...and have the other eight divided into maybe the last two yrs of the deal...so at that time i would make 10 million a yr instead of 6

Darth_Vader · 07-01-2004, 09:55 PM

And when you say salary cap causalty do you mean that players are afraid that they may be cut before they reach the lucrative part of their contract?

IF they are under contract doesn't that mean that they can't be cut? And even so, they would still get the money right???

Darth_Vader · 07-02-2004, 08:26 AM

fossen · 07-02-2004, 08:32 AM

Quote:

Darth_Vader said:
IF they are under contract doesn't that mean that they can't be cut? And even so, they would still get the money right???

No and no.

Welcome to the NFL.

Players can be cut at the employer's discretion. And when cut, they are not owed the full amount of the salary.

101 · 07-02-2004, 09:11 AM

Quote:

fossen said:

Quote:

Darth_Vader said:
IF they are under contract doesn't that mean that they can't be cut? And even so, they would still get the money right???

No and no.

Welcome to the NFL.

Players can be cut at the employer's discretion. And when cut, they are not owed the full amount of the salary.

which is why the signing bonus is so critical cuz its the only cash thats guaranteed.

07-01-2004, 02:09 PM	#1
DTX3 Hall Of Fame OVR: 56 Join Date: Jun 2003 Location: Coachella Valley, California Posts: 13,028 Blog Entries: 21	Whats backload? In the contract what is backload?

07-01-2004, 02:15 PM	#2
JohnnyKilroy Rookie OVR: 1 Join Date: Jun 2004	Re: Whats backload? As the name implies...a large bulk of the player's salary is to be paid in the last few years (back) of the contract. It's cap-friendly, good for the organization managing the salary cap; not so attractive for players seeking big $$, because players almost always become salary cap casualties before they even reach those lucrative years. That's why players are always out to get the biggest signing bonus possible, because that is all that's guaranteed...

07-01-2004, 02:16 PM	#3
Bondra12 Rookie OVR: 4 Join Date: Sep 2003	Re: Whats backload? Quote: Let's imagine we have a player named Ed Zample and he signed a contract with the Falcons. The terms of the contract are that Ed signed a five year contract with a signing bonus of $5 million and the total worth of the contract if $13 million. Here are the base salaries in Ed's contract: Year 1: $500,000 Year 2: $1,000,000 Year 3: $1,500,000 Year 4: $2,000,000 Year 5: $2,500,000 This is common in the NFL. It is called a backloaded contract. Ed will receive $7.5 million in base salary, but instead of prorating that evenly over the course of the contract ($1.5 million per year), teams typically design it so that the lowest cap hit occurs initially and it increases annually. Here you go.

07-01-2004, 02:17 PM	#4
jordan0386 Banned OVR: 18 Join Date: May 2003 Location: Bronx, NY	Re: Whats backload? putting alot of money toward the later yrs of a deal say i sign for 5 yrs at 6 million per... since im scheduled to make 12 million over the first two yrs...i can make 4 million over the first two...and have the other eight divided into maybe the last two yrs of the deal...so at that time i would make 10 million a yr instead of 6

07-01-2004, 09:55 PM	#5
Darth_Vader Rookie OVR: 3 Join Date: Apr 2003	Re: Whats backload? And when you say salary cap causalty do you mean that players are afraid that they may be cut before they reach the lucrative part of their contract? IF they are under contract doesn't that mean that they can't be cut? And even so, they would still get the money right???

	MLB The Show 24 Review: Another Solid Hit for the Series
	New Star GP Review: Old-School Arcade Fun
	Where Are Our College Basketball Video Game Rumors?

07-02-2004, 08:26 AM	#6
Darth_Vader Rookie OVR: 3 Join Date: Apr 2003	Re: Whats backload? bump

07-02-2004, 08:32 AM	#7
fossen Blbflth zp! OVR: 28* Join Date: Jul 2002 Location: Salt Lake City, UT Posts: 7,098	Re: Whats backload? Quote: *Darth_Vader said:* IF they are under contract doesn't that mean that they can't be cut? And even so, they would still get the money right??? No and no. Welcome to the NFL. Players can be cut at the employer's discretion. And when cut, they are not owed the full amount of the salary.

07-02-2004, 09:11 AM	#8
101 Pro OVR: 6 Join Date: Jul 2002 Location: No Va	Re: Whats backload? Quote: *fossen said:* Quote: *Darth_Vader said:* IF they are under contract doesn't that mean that they can't be cut? And even so, they would still get the money right??? No and no. Welcome to the NFL. Players can be cut at the employer's discretion. And when cut, they are not owed the full amount of the salary. which is why the signing bonus is so critical cuz its the only cash thats guaranteed.

More Links

Whats backload?