Whats backload?

[DTX3]

In the contract what is backload?

[JohnnyKilroy]

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...

[JohnnyKilroy]

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...

[JohnnyKilroy]

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...

[Bondra12]

Re: Whats backload?

</font><blockquote><font class="small">Quote:</font><hr />
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.

<hr /></blockquote><font class="post">

Here you go.

[Bondra12]

Re: Whats backload?

</font><blockquote><font class="small">Quote:</font><hr />
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.

<hr /></blockquote><font class="post">

Here you go.

[Bondra12]

Re: Whats backload?

</font><blockquote><font class="small">Quote:</font><hr />
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.

<hr /></blockquote><font class="post">

Here you go.

[jordan0386]

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

[jordan0386]

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

[jordan0386]

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

[Darth_Vader]

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???

[Darth_Vader]

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???

[Darth_Vader]

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???

[Darth_Vader]

Re: Whats backload?

bump

[Darth_Vader]

Re: Whats backload?

bump