NFL Collective Bargaining Agreement

Article 13
Salary Cap Accounting Rules

Section 6(c)(xxi)
Valuation of Player Contracts

Notwithstanding any provision in a Player Contract to the contrary or when such payments are actually made, the following rules shall apply in determining the amount of a player’s Salary that is to be included in Team Salary in a particular League Year for purposes of the Salary Cap:

(c)(xxi)

Any portion of an incentive bonus that is earned, but which had not been deemed likely to be earned, will be deemed earned at the end of the season and not immediately upon attainment of the required performance level except: (1) roster or reporting bonuses stated in terms of a per game or per event occurrence; (2) if the incentive bonus is actually paid before the end of the season, in which case it will count when paid; (3) if a player leaves the team’s roster prior to the end of the season and the conditions of the incentive clause are satisfied prior to leaving, in which case the entire value of the earned bonus will count immediately; or (4) if the contract is renegotiated and the incentive has been earned prior to such renegotiation. Without limitation to other examples, the following examples demonstrate the application of this Subsection:

Example 1: If a player’s contract states that the player will receive $1,000 for each rushing touchdown scored by the player during the 2021 regular season, and the player scored five rushing touchdowns during the 2020 regular season, $5,000 will automatically be deemed “likely to be earned” and will be charged to the Club’s 2021 Team Salary on the first day of the 2021 League Year. If the player scores more than five rushing touchdowns during the 2021 regular season, $1,000 for each additional rushing touchdown scored will be deemed earned at the end of the 2021 regular season and not immediately upon achievement by the player, unless one of the conditions stated in Subparagraphs (2)-(4) of this Subsection applies.

Example 2: If a player’s contract states that the player will receive $1,000 for each game during the 2021 regular season for which the player is on the Club’s 48-Player Roster, and the player was on a Club’s 48-Player Roster for three games during the 2020 regular season, $3,000 will automatically be deemed “likely to be earned” and will be charged to the Club’s Team Salary on the first day of the 2021 League Year. If the player is on the Club’s 48Player Roster for more than three games during the 2021 regular season, $1,000 for each such additional game will be deemed earned immediately upon achievement and will be charged to the Club’s 2021 Team Salary at that time.

Nothing in this subsection is intended to, or shall operate to, add to, subtract from, or alter in any way the provisions of Section 6(c)(xix) of this Article.