Can somebody tell me about NFL contracts?
i dont understand how NFL teams can afford this contracts or how there paid , salery caps and stuff .
- 1 decade agoFavorite Answer
There owners are rich, and have a LOT of money.. They make money off of the fans, buying tickets, food, parking ect...
- gymrat0187Lv 41 decade ago
When you read of a person signing a 50 million dollar contract the one thing you must remember is that not all of that money is gaurenteed. If a contract is valued at 50 mill over 5 years then you may see the break down go like this
6 million dollar signing bonus (this is gaurenteed money not to be paid all at once but over the length of the contract, only the amount paid that year goes against the cap)
Next would be the base salary say about 585,000 per year (this is money to be paid no matter how the player performs and cannot be reduced unless they are injured or a new contract is negotiate)
Next is performance bonuses such as how many TD's are made, How many yards, tackles, INT's etc.
Next is playoff bonuses
Next is awards bonuses such as if a person is voted MVP, Pro Bowl, Yards leader, Definsive player of year Etc.
Over the 5 year life of the contract that is Valued at 50 mil. if the player reaches all his said negotiated bonus levels then he would have recieved the whole 50 mil. but if not then he only gets a portion of that .
Just because a contract is valued at a certain dollar amount that doesn't mean they will ever get all of that money.Source(s): Go EAGLES
- Anonymous1 decade ago
Cap changes each year. Let's use $100 million just because.
Lets assume you are an expansion team with no players. You sign Dante Culpepper for 7 years. His signing bonus is $30 million. If you cut him tomorrow he keeps the $30 million - the rest is not guaranteed. 30 divided by seven is $4.29 million cap hit for the bonus. (I'm rounding.)
We are not done with Dante. His salary is $2.5 million this year. If he gets injured, you must pay him $2.5 million this year. Years 2-7 you don't need to pay him if he gets injured.
$4.29 + $2.5 = $6.79 million in cap charge for Dante this year.
We still are not done with Dante. His contract has bonuses. If he throws 10 TDs he gets $500,000. At 20 TDs he gets another $500,000. At 30 he gets another $500,000. At 40 he gets another $500,000. For reasons that will be clear later he also has incentives for special teams play. If he runs back a kick off for a TDs he makes $10 million.
(Yes, that is stupid, bear with me.)
The NFL, through a mysterious process, decides the 10 and 20 TDs is "likely to be earned" so they count against the cap this year. Dante is $7.79 million of your cap.
Then the special team incentive is considered likely to be earned. Dante is now $17.79 million of your cap.
The 30 and 40 TD bonus is called unlikely to be earned.
Then the year happens.
Dante threw for 39 TDs but ran back no kicks for TDs.
That is $500,000 that he made for 30 TDs you were not charged. For the 2008 season your cap is already got $500,000 on it before we do the rest.
You were also charged $10 million that Dante did not earn (no kick off returns, remember?:)) That is plus $10 million to your 2008 cap.
Back to 2007. Repeat this for the other 51 players. Salaries vary. Stay under $100 million. Have fun.
- jimLv 61 decade ago
The most important thing to remember about NFL contracts, is that they are not guarenteed, like in baseball. Also, that signing bonuses don't count against the salary cap. So teams give huge contracts with huge signing bonus, so they're player gets a boat load of cash, but the contract usually in never fully completed.
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- Steve jobsLv 41 decade ago
Most of these owners are billionares example: The guy that owns the lions is a Ford and has a lot of money but doesn't care much about the lions.They are paid with a check that they can cash in to a bank salary cap varys year to year I think its around 100mill. The reason nfl players are cut is so they don't exeed the salary cap