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- May 19, 2010
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Been looking into this after so many mention how the salary cap will take a hit from this years success.
Every salary cap has an allotment for bonuses. The Performance Bonus Cushion allows a team to exceed the Upper Limit by up to 7.5% due to performance bonuses. All performance bonuses, earned or not, count against the cap. If a bonus becomes impossible to achieve, then the team gets a cap credit back for the remainder of that season. At the end of the year, if the actual bonuses earned cause the team to exceed the Upper Limit, that excess is applied against the following seasons cap. Doing the math on the salary cap it allows for roughly $4.4 million in bonuses.
Every salary cap has an allotment for bonuses. The Performance Bonus Cushion allows a team to exceed the Upper Limit by up to 7.5% due to performance bonuses. All performance bonuses, earned or not, count against the cap. If a bonus becomes impossible to achieve, then the team gets a cap credit back for the remainder of that season. At the end of the year, if the actual bonuses earned cause the team to exceed the Upper Limit, that excess is applied against the following seasons cap. Doing the math on the salary cap it allows for roughly $4.4 million in bonuses.