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Is there/what is the max you can frontload/signing bonus?
Posted: Mon Jan 16, 2012 8:57 am
by N.O.R.E.
As the title says, is there/what is the maximum amount you can frontload or include a signing bonus for, when signing another team's RFA?
i.e, could you sign Westbrook to a deal paying a ridiculous amount in year 1?
Re: Is there/what is the max you can frontload/signing bonus
Posted: Mon Jan 16, 2012 11:43 am
by DBoys
The limitation on signing bonuses in Offer Sheets is 10%. Signing bonuses in other contracts cannot exceed 15%. The signing bonus limit is a percentage of the player’s total compensation (including the signing bonus but excluding any incentive compensation).
Re: Is there/what is the max you can frontload/signing bonus
Posted: Thu Jan 19, 2012 2:03 am
by Rebuilding Year
I thought the signing bonus gets spread over the length of the contract.
Is this how teams frontload? How much can you apportion it to different years?
Re: Is there/what is the max you can frontload/signing bonus
Posted: Fri Jan 20, 2012 5:10 am
by answerthink
A signing bonus typically gets paid up front, and then allocated among the guaranteed seasons in the contract in proportion to the percentage of salary in each of those seasons that is guaranteed.
In regard to frontloading, up to the lesser of (i) 80% of the total guaranteed compensation and (ii) 50% of the base compensation for any season can be paid prior to November 15 of that season. However, no more than 25% of a player’s base compensation for any season can be paid prior to the October 1 immediately preceding the first day of the regular season.