"Cap hit" and player's salaries
Posted: Tue Feb 08, 2005 7:58 pm
I have a couple of questions that stem from the general dubiousness of how much a typical player "makes" in a year. All of the time we hear about guys that sign 28 million dollar contracts including a 4 million bonus; but it turns out that they end up playing for 6 figures a year (because of backloading) and are cut / traded / or restructure before any of the significant numbers come into play. Therefore, a lot of the big contract is simply for show (he's a 60+ million corner, they might say about Champ), and they never will see the money--or so it seems to me. With that in mind:
(1) Are all signing bonuses always paid out in full, even if it takes up to the 7 years (or so) to do it? In other words, if I'm a draft pick that gets a 6 million dollar bonus, and I show up and sign that document, does this guarentee that I will see 6 million dollars come into my bank account within 5 or 6 years? Or does part of signing bonus depend on if I'm playing and not retired, or if I'm still with the team, etc.?
(2) I've seen the annual talk about "cap hits" again, and each year what I wonder is this. Is a "cap hit" literally the money that we will have to pay that player if we cut him? Do people like Trotter get really happy when they are cut rather than traded, since this seems to accelerate the payment on their signing bonus (and they get more of it if we are impatient)? Or is "cap hit" a little more theoreotical, kind of a made up number based on contracts in order to have a managed salary cap in the league?
If either of those questions are unclear I can try and qualify a bit more. . .
(1) Are all signing bonuses always paid out in full, even if it takes up to the 7 years (or so) to do it? In other words, if I'm a draft pick that gets a 6 million dollar bonus, and I show up and sign that document, does this guarentee that I will see 6 million dollars come into my bank account within 5 or 6 years? Or does part of signing bonus depend on if I'm playing and not retired, or if I'm still with the team, etc.?
(2) I've seen the annual talk about "cap hits" again, and each year what I wonder is this. Is a "cap hit" literally the money that we will have to pay that player if we cut him? Do people like Trotter get really happy when they are cut rather than traded, since this seems to accelerate the payment on their signing bonus (and they get more of it if we are impatient)? Or is "cap hit" a little more theoreotical, kind of a made up number based on contracts in order to have a managed salary cap in the league?
If either of those questions are unclear I can try and qualify a bit more. . .