nfl incentives

Houston Texans – 2021 Incentive Tracker

Posted on by Troy Chapman

Player incentives are something that myself and Houston fans are not used to hearing about. Rick Smith was the General Manager from 2006 through 2017 (along with capologist Chris Olsen) and did not employ the use of player/team incentives into player contracts. That practice has since changed dramatically with new General Manager Nick Caserio. Caserio came over from New England where incentives were heavily used. Interim General Manager tandem of Bill O’Brien and Jack Easterby started the process in 2020 with incentives sprinkled into a few contracts. Caserio took that to a new level, negotiating incentives into the majority of free agent contracts signed during the 2021 season including offseason and in-season contracts.

Given that Houston fans are likely not familiar with incentives and how they can affect the team’s salary cap; this was a good time to explain how they work. We will also show where each player stands with their individual incentives heading into the last game of the regular season. We will not cover salary escalators as Houston has not deployed escalators as of yet.

For specific details into incentives and the list of specific incentives available, you can refer to the Collective Bargaining Agreement Article 13 Section 6 Part C.

Acronyms:

  • LTBE = Likely To Be Earned
  • NLTBE = Not Likely To Be Earned
  • Def Snap = Player Defensive Snaps
  • Off Snap = Player Offensive Snaps
  • PT = Playing Time

Incentives can effect the player and team salary cap in various ways, and impact the cash spending for the team. Incentives can be used in practically any contract, including rookie contracts. However they are primarily used in non-rookie contracts. Referencing the above link to the CBA section on Incentives, there is a specific list of available incentives that may be negotiated into a contract.

Incentives that are considered to be LTBE will impact the cap charge for the current year. For an incentive to be LTBE, the league will reference the player’s performance in that category from the previous year. For example, if a player has a playing time incentive of 55% of defensive snaps worth $250,000 for the 2021 season. If the player played in 62% of the defensive snaps (no matter what team) then the $250,000 is considered LTBE and would count towards the player’s 2021 salary cap charge.

Conversely, using the same example, if the player played in 48% of the defensive snaps in 2020 then the $250,000 would be considered NTLBE and would not impact the 2021 salary cap.

After the conclusion of the regular season the teams will calculate all the incentives for players to determine the amount of cash earned through incentives on top of the player’s base salary.

If a NLTBE incentive is earned in 2021, and the same incentive is in place for 2022 then the incentive becomes LTBE and will be charged to the 2022 salary cap for that player. The team will also receive a debit towards the 2022 salary cap through the annual adjustment. Conversely, if a player has a LTBE incentive in 2021 that is not earned, then the team will receive a cap credit in 2022 annual adjustment for the corresponding amount and the incentive becomes NLTBE in 2022.

Teams can utilize incentives to manipulate cap space in the immediate year. Looking at David Johnson in the table below, the first tier of his Total Yards incentive is 1,006 yards. David Johnson had 1,005 total yards in 2020. Therefore this makes the incentive NLTBE and does not count towards the 2021 salary cap.

2021 Incentive Tracker

Sounds more confusing that it is. Below is a table for the Houston Texans players that have incentives and where they stand heading into Week 18 of the regular season. The amounts in Bold & Italics are considered LTBE for 2021. Everything else is considered to be NLTBE for 2021. The dollar amounts stack as each tier is achieved. The incentives listed as Yes Achieved, that is based on projection heading into the last game of the season.

PlayerIncentivesDetailValueAchieved
Taylor, Tyrod $   6,500,000 60% Off Snap $  1,000,000 No
70% Off Snap $  1,000,000 No
80% Off Snap $  1,000,000 No
90% Off Snap $  1,000,000 No
60% + Playoff $  1,000,000 No
70% + Playoff $  1,000,000 No
Pro Bowl $      500,000 No
Britt, Justin $   1,800,000 55% Off Snap $      450,000 Yes
65% Off Snap $      450,000 Approaching
75% Off Snap $      450,000 No
85% Off Snap $      450,000 No
Kirksey, Christian $   1,500,000 55% Def Snap $      250,000 Yes
65% Def Snap $      250,000 Yes
75% Def Snap $      500,000 Approaching
85% Def Snap $      500,000 No
Johnson, David $   1,000,000 57% Off Snap $      250,000 No
65% Off Snap $      250,000 No
1006 Total Yards $      250,000 No
1200 Total Yards $      250,000 No
Collins, Maliek $   1,000,000 50% Def Snap $      250,000 Yes
60% Def Snap $      250,000 Approaching
70% Def Snap $      250,000 No
80% Def Snap $      250,000 No
Cannon, Marcus $       750,000 80% Off Snap $      800,000 No
90% Off Snap $      850,000 No
Grugier-Hill, Kamu $       750,000 30% Def Snap $      125,000 Yes
40% Def Snap $      125,000 Yes
50% Def Snap $      250,000 Yes
60% Def Snap $      250,000 Yes
McCray, Justin $       750,000 35% Off Snap $      187,500 Yes
45% Off Snap $      187,500 Yes
55% Off Snap $      187,500 Approaching
65% Off Snap $      187,500 No
Murray, Eric $       750,000 60% Def Snap $      250,000 Yes
70% Def Snap $      250,000 Approaching
80% Def Snap $      250,000 No
Amendola, Danny $       700,000 45% Off Snap $      140,000 No
55% Off Snap $      140,000 No
50 receptions $      140,000 No
60 receptions $      140,000 No
70 receptions $      140,000 No
Brown, Pharaoh $       600,000 30% Off Snap $      150,000 Yes
40% Off Snap $      150,000 Yes
50% Off Snap $      150,000 Yes
60% Off Snap $      150,000 Approaching
Taylor, Vincent $       500,000 20% Def Snap $      100,000 No
30% Def Snap $      100,000 No
40% Def Snap $      100,000 No
50% Def Snap $      100,000 No
60% Def Snap $      100,000 No
Pierre-Louis, Kevin $       500,000 60% Def Snap $      250,000 No
70% Def Snap $      250,000 No
Mitchell, Terrance $       500,000 80% Def Snap $      500,000 No
King, Desmond $       500,000 60% Def Snap $      250,000 Yes
70% Def Snap $      250,000 Yes
Conley, Chris $       500,000 45% Off Snap $      100,000 Yes
55% Off Snap $      100,000 Yes
45 Receptions $      100,000 No
55 Receptions $      100,000 No
65 Receptions $      100,000 No
Wilson, Eric $       500,000 70% + Improvement $      125,000 No
80% + Improvement $      125,000 No
90% + Improvement $      250,000 No
Burkhead, Rex $       500,000 30% Off Snap $      125,000 Approaching
40% Off Snap $      125,000 No
500 Total Yards $      125,000 Yes
650 Total Yards $      125,000 Approaching
Hewitt, Neville $       300,000 50% Def Snap $      150,000 No
70% Def Snap $      150,000 No
Brooks, Terrence $       250,000 40% Def Snap $      125,000 No
50% Def Snap $      125,000 No
Davis, Tae $       150,000 15% Def Snap $         50,000 No
20% Def Snap $         50,000 No
25% Def Snap $         50,000 No

NFL Contracts: The Incentive vs The Escalator

Posted on by Jason Fitzgerald

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With NFL player releases in full swing as teams look to be well under the cap for the start of free agency I thought it might be a good time to discuss the incentive versus the escalator and the importance that the distinction, however small, should be to the agent negotiating the contract.

Typically both the escalator and incentive are earned in a similar manner. In general these are some type of performance threshold that a player must pass in order to earn a financial reward. For example a team might give the player extra money for playing in a certain percentage of plays or throwing for a certain amount of yards. The big difference comes in the form of actually earning the money.

If the performance threshold is tied into an incentive then the player is actually paid when he exceeds the minimum performance level. If I have a $1 million dollar incentive for running for 1000 yards I am going to get a check for meeting that goal. In most cases a team will have their salary cap adjusted for that payment at the end of the year. That will lead to less carryover money or in some cases losses on the following seasons cap. These uncertainties against the salary cap make some teams want to shy away from these incentives because they lose control over the financial planning. Coaches let the players play and (for the most part) they are not going to be stopped because of a cap guy telling them not to play somebody.

With an escalator the team does not lose their financial control. An escalator, if earned, simply becomes a raise for the following year. In most cases it is not guaranteed. So from a players perspective they work hard in a prior year to meet a goal but there may be no payoff. In this case most teams will say “there is no chance they can do that again” and because the escalator is not guaranteed will either cut the player or force a paycut. So many releases are due to players seeing their 2013 salaries rise from their play in 2012.

This is tough for the player. You can put yourself in their shoes in this case. Imagine if your boss told you that if you sold 100 cars he would give you a raise next year. Then when you do it he tells you he changed his mind and you can either work for your salary from the last year or go find a new job. I’d be pretty frustrated with that and that is what many players, especially mid tier player, experience during the course of their contracts.

It seems like a minor detail but I think its one where having strong representation really benefits a player. An agent needs to push as hard as they can to have incentives placed into a contract and if the team will only agree to escalators than those escalators should be guaranteed if earned.   If not expect to see more releases of players who exceed expectations for one year only to see their salaries to rise beyond a level that a team sees them being worth.

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