PFT:Option bonus payments will count as signing bonus because of 30 percent rule

[DefenseRules]

http://www.profootballtalk.com/rumormill.htm

SPECIAL MASTER RULING COMPLICATES MATTERS

At a time when NFL teams are trying to figure out how in the hell they'll stay on the right side of the salary cap absent an extension to the Collective Bargaining Agreement, a league source tells us that a Special Master has ruled on Wednesday that option bonus payments will count as signing bonus money for the purposes of the so-called 30 percent rule.

This means that it will be even harder to construct contracts in 2006, the final capped year under the current CBA. Under the 30 percent rule, a player's compensation cannot increase in 2007 or beyond by more than 30 percent of the player's 2006 salary, excluding signing bonus.

In order to drive up the basis for the application of the 30 percent rule, some teams and agents had planned to transform all or part of the signing bonus into an option bonus due, for example, five days after the contract was signed.

Per the Special Master's ruling, this tactic won't permit the option bonus money to be treated as 2006 salary, which then will make it even harder for teams to strike deals that the players will accept under terms that will fit within the 2006 salary cap.

Instead, both signing bonus and option bonus money will now be excluded from the player's 2006 salary, for the purposes of applying the 30 percent rule.

We're also told that, in a separate ruling, the Special Master invalidated a device that the Colts had been using to fit recent deals under the cap. We presently don't have any further details in this regard, but it could spell trouble for a franchise that somehow has been finding a way to throw around money at a time when other teams are looking for ways to make cuts.

Unlike an arbitrator, who resolves issues such as player grievances, a Special Master handles matters requiring interpretation of the language of the CBA.

Things just got more complicated, and I wonder what the Colts were up to.

 

[Murphys95]

Things just got more complicated, and I wonder what the Colts were up to.

One year deals. One year deals.

 

[Box_O_Rocks]

Polian is going to have to push the Competition Committee to allow arena rules so they can play with half the 53 man roster. 8 man football!