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Old 09-08-2005, 10:14 PM   #1
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Signing Bonus

How does signing bonuses vs. annual salary work against the cap. Any help would be appricaited since I am about to finish my first season.
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Old 09-09-2005, 12:13 AM   #2
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Re: Signing Bonus

you give a player x amount of signing bonus in the contract. That x amount is spread evenly over the length of the contract. Then you negotiate the salary and it is worked into the contract as well. Salaries are not guaranteed. So if you cut that player, the salary is wiped from your salary cap. However, whatever is left of the signing bonus escalates onto your cap, since you already gave the player that money when he signed the contract. Here's an example...

5 year deal for $30 million including a $10 million signing bonus.
year 1 2 3 4 5
signing bonus $2 million $2 million $2 milllion $2 million $2 million
salary $ 1 million $ 2 million $ 3.5 million $5 million $8.5 million
total cap $3 million $4 million $ 5.5 million $7 million $10.5 million

If the player is cut or traded lets say after year 2. Then the remaining 3 years of signing bonus is accelerated to the salary cap, meaning you have a $6 million cap hit. the remaining $17 million salary is wiped clean, and does not count against your cap.
Thus, you can see where a team might would, in this situation, sign a player to this deal, and basically get the player for 4 years at $21.5 million, and then cut him before year 5, and save $6.5 million on the cap after saving the $8.5 million salary, yet take the final $2 million signing bonus hit.
Hope this helps!
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Old 09-09-2005, 02:54 AM   #3
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Re: Signing Bonus

Basically the signing bonus is guranteed money. So whatever you may do to the guy, he'll still get his signing bonus.
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Old 09-09-2005, 09:25 AM   #4
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Re: Signing Bonus

Quote:
Originally Posted by shugknight
Basically the signing bonus is guranteed money. So whatever you may do to the guy, he'll still get his signing bonus.
He gets the signing bonus the first day he signs the contract. What you're trying to say is, whatever you do to the guy, your team will take the cap hit of the signing bonus, no matter what.
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Old 09-09-2005, 04:24 PM   #5
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Re: Signing Bonus

Thank you Samantha that was big help. You have finally answered my question so I could understand. I am kinda slow and special. See what happens when you hire the handicap to run a football team. Thank you again.
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