Performance Bonuses

[TehDoak]

According to the CBA (50.2.c)

(C) "Performance Bonuses."
(1) "Performance Bonuses" means any Bonuses set
forth in a Player's SPC, the payment of which is
contingent on the Player's achievement of some
agreed-upon benchmark(s) related to his
performance as a Player or his Club's performance
during a particular League Year.
(2) Performance Bonuses shall be allowable under this
Agreement only for:
(i) Players with Entry Level SPCs under
Article 9 of this Agreement;
(ii) Players aged 35 or older as of June
30 prior to the League Year in which the SPC is to
be effective, who have signed a one-year SPC for
that League Year; and
(iii) Players who are "400-plus game
Players" for pension purposes, and who: (i) in the
last year of their most recent SPC, spent 100 days or
more on the injured reserve list; and (ii) have signed
a one-year SPC for the current or upcoming League
Year.
As to paragraphs (C)(2)(ii) and (C)(2)(iii), such Players are not
limited in the length of an SPC they may sign, but in the event any
such Player signs an SPC with a term of longer than one (1) year,
the SPC shall not be permitted to contain Performance Bonuses.
No Players other than those falling into one of the abovenumerated
categories set forth in this paragraph (C)(2) shall be
permitted to receive Performance Bonuses of any kind.
(ii) No bonuses other than those set forth in subsection (i) above shall
be permitted to be earned by or paid to any Players. No Player
other than a Player listed in paragraph (C)(2) above may receive a
bonus of any type other than a Signing Bonus, Reporting Bonus, or
Roster Bonus.

There are very strict standards, however, would it be possible use to the last section (the highlighted section) as an end around for Team based performance bonuses? For example, a "reporting bonus" for "game 1 of the SCF" or "Team Stanley Cup Parade activity"

Click to read more...

 

[Ted Hoffman]

The question is whether those situations fall under the definition of Performance Bonsues instead:

Article 50.2(b)(i)
(C) "Performance Bonuses."
(1) "Performance Bonuses" means any Bonuses set forth in a Player's SPC, the payment of which is contingent on the Player's achievement of some agreed-upon benchmark(s) related to his performance as a Player or his Club's performance during a particular League Year.

Since the reporting bonus isn't achievable unless the Club reaches certain a certain level of performace (here, reaching the Stanley Cup Finals or winning the Stanley Cup), then I'd bet the league would look at such a clause and declare that it is in fact a Performance Bonus - and thus unless the player fit the criteria in (2) of (C) in the quote, would refuse to accept the contract as a result.

 

[kdb209]

The question is whether those situations fall under the definition of Performance Bonsues instead:


Since the reporting bonus isn't achievable unless the Club reaches certain a certain level of performace (here, reaching the Stanley Cup Finals or winning the Stanley Cup), then I'd bet the league would look at such a clause and declare that it is in fact a Performance Bonus - and thus unless the player fit the criteria in (2) of (C) in the quote, would refuse to accept the contract as a result.

Reporting Bonuses are for reporting to training camp.

It's curious that the New CBA did not include definitions for "Roster Bonus" and "Reporting Bonus" in Article 1 (Definitions) - it does define "Signing Bonus" though:

"Signing Bonuses" shall mean any compensation paid for signing an SPC.

The expired CBA did include "Roster Bonus" and "Reporting Bonus"in the Article 1 definitions:

"Signing, Reporting and Roster Bonuses" means any Compensation, regardless of
when paid, for signing a Player Contract, reporting to training camp, making the roster or any other
activity not contingent upon a player's attaining or surpassing a particular level of performance. Any
non-cash item of value promised or received as Compensation shall automatically be deemed to be a
Signing, Reporting or Roster Bonus. Any Compensation for non-roster related services paid or
promised to be paid to a Player subject to the Entry Level System shall be deemed to be a Signing
Bonus.

 

[TehDoak]

The question is whether those situations fall under the definition of Performance Bonsues instead:


Since the reporting bonus isn't achievable unless the Club reaches certain a certain level of performace (here, reaching the Stanley Cup Finals or winning the Stanley Cup), then I'd bet the league would look at such a clause and declare that it is in fact a Performance Bonus - and thus unless the player fit the criteria in (2) of (C) in the quote, would refuse to accept the contract as a result.

You make loophole finding absolutley no fun

 

[Ted Hoffman]

You make loophole finding absolutley no fun

You make digging this stuff out of the CBA fun.