Veteran Salary Benefit
Section 2Qualifying Contracts
For purposes of this section, a “Qualifying Contract” shall be defined as a Player Contract signed by a Qualifying Player that (i) covers only a single League Year and (ii) contains no terms that affect compensation in any way other than (1) the applicable minimum Paragraph 5 Salary, (2) up to $137,500 in “Additional Compensation” for the 2020-21 League Years (e.g., signing bonus allocation, roster bonus, reporting bonus, or any incentive (“likely to be earned” or not)), and/or (3) a guarantee for Salary and/or Salary advance of up to the Minimum Salary for a player with two Credited Seasons. A Qualifying Contract may not be extended or renegotiated in any manner except as provided in Section 10 below. Split contracts, if they otherwise qualify, may be Qualifying Contracts. Thus, for example, a contract that includes an option year is not a Qualifying Contract.
The maximum amount of Additional Compensation in (2) above shall be increased to $152,500 for the 2022–23 League Years, to $167,500 for the 2024–25 League Years, to $187,500 for the 2026–27 League Years, to $207,500 for the 2028–29 League Years and to $227,500 for the 2030 League Year.
If the player’s prior contract was terminated, he is eligible to sign a Qualifying Contract if he does not earn more than the maximum amount of Additional Compensation less the amount of any Additional Compensation and/or guaranteed Salary earned during that League Year under the terminated years of his prior contract(s), but his combined compensation from the terminated contract(s) earned for that League Year and the Qualifying Contract cannot exceed the applicable minimum for that League Year plus the maximum amount of Additional Compensation.