Was hoping someone could answer this for me, had some trouble finding the answer.
So with contracts, there are a few rules that apply to prevent back diving deals such as
- Max 35% variance year-over-year
- Max 50% variance between lowest year and highest year of contract (Variance restrictions apply only to frontloaded deals, not backloaded deals)
Do these variances include signing bonus amounts too? Could a team in theory sign a player to a contract such as year's 1-4 with 1m salary each, and then signing bonus of 5m years 1 + 2 effectively paying the players as follows
Year 1 - 6m
Year 2 - 6m
Year 3 - 1m
Year 4 - 1m
Player has a 4.5m cap hit, but is more easily moveable due to the lower money owed in later years.
My instinct says that signing bonuses would be included in the variance amounts, but thought I would ask because the only player contract example I could think of doesn't even seem to follow the rules I stated earlier.
David Clarksons contract structure is laid out here (http://www.pensionplanpuppets.com/2...ksons-contract-is-maybe-probably-buyout-proof) and it doesn't follow the 50% max variance rule if you include signing bonus, but if you don't include signing bonuses then it doesn't follow the 35% variance per year part of the rule.
Was hoping someone could shed some light on this for me, thanks.
So with contracts, there are a few rules that apply to prevent back diving deals such as
- Max 35% variance year-over-year
- Max 50% variance between lowest year and highest year of contract (Variance restrictions apply only to frontloaded deals, not backloaded deals)
Do these variances include signing bonus amounts too? Could a team in theory sign a player to a contract such as year's 1-4 with 1m salary each, and then signing bonus of 5m years 1 + 2 effectively paying the players as follows
Year 1 - 6m
Year 2 - 6m
Year 3 - 1m
Year 4 - 1m
Player has a 4.5m cap hit, but is more easily moveable due to the lower money owed in later years.
My instinct says that signing bonuses would be included in the variance amounts, but thought I would ask because the only player contract example I could think of doesn't even seem to follow the rules I stated earlier.
David Clarksons contract structure is laid out here (http://www.pensionplanpuppets.com/2...ksons-contract-is-maybe-probably-buyout-proof) and it doesn't follow the 50% max variance rule if you include signing bonus, but if you don't include signing bonuses then it doesn't follow the 35% variance per year part of the rule.
Was hoping someone could shed some light on this for me, thanks.