Signing Bonuses

[gibber1600]

Can someone explain on Capgeek http://www.capgeek.com/player/690 it says Brad Richards is Getting $12,000,000 this year and $8,000,000 in signing bonus so is he making $20,000,000 just for this year?

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[allan5oh]

Yes. $12,000,000 for playing, $8,000,000 for signing the contract. He already got that $8,000,000 at the beginning of the season I believe. They get that money wether there's a lockout or not.

 

[gibber1600]

Then why dont the owners just pay the players in signing bonuses instead of cap money? Doesn't make sense.

 

[allan5oh]

It still counts against the cap.

 

[gibber1600]

Are you sure? don't think it does. I will add it up. http://www.capgeek.com/player/690.

 

[gibber1600]

No he is showing a cap hit of 6,666,000 thats 9 yrs/60m. Signing bonuses are not in that figure.

 

[TonyFresco]

Can someone explain on Capgeek http://www.capgeek.com/player/690 it says Brad Richards is Getting $12,000,000 this year and $8,000,000 in signing bonus so is he making $20,000,000 just for this year?

No, that's not correct. The $12,000,000 figure includes the signing bonus. If you hover over the "?" beside the NHL Salary header, it reads "The Player's total salary in a given season, including signing bonuses."

So for this year, it is $8,000,000 signing bonus plus $4,000,000 salary for a total of $12,000,000 (before pro-ration for effect of the lockout).

 

[allan5oh]

After reading a bit I think I'm completely wrong.

 

[allan5oh]

So for this year, it is $8,000,000 signing bonus plus $4,000,000 salary for a total of $12,000,000 (before pro-ration for effect of the lockout).

I know the salary is pro-rated, but I'm pretty sure the bonus is not.

But I've been wrong before.

 

[almostawake]

All signing bonuses are counted as part of the contract's total value for purposes of calculating the cap hit.

On capgeek the portion of annual salary paid as signing bonuses is shown. Not the amount over and above annual salary.

 

[King Woodballs]

it all counts towards the cap.

Whom ever had one, got paid July 1.

Look at webers contract.

 

[gibber1600]

If these are guaranteed contract then whats the difference if they paid in one lump some July 1st or spread out over the year? Other than this year with the lockout.

 

[allan5oh]

The most obvious is they get their money July 1st. I'm sure there's a number of small ramifications as well. Buyouts would be one. Also it affects their value in trades, especially with low budget teams.

http://www.capgeek.com/player/1042

2017-2018 he gets paid $8 mil July 1st and $4 mil through the year with a cap hit of almost $8 mil. To a team like the Islanders that's extremely valuable. Nashville absorbs the $8 million then trades him to the Isles.

 

[Sweech]

Signing bonuses count just the same against the cap.

 

[cheswick]

If these are guaranteed contract then whats the difference if they paid in one lump some July 1st or spread out over the year? Other than this year with the lockout.

Bonuses are not subject to escrow as far as I know.