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Incentive Contracts

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  • tajallie@hotmail.com
    Anybody know how incentive contracts are calculated with regards to salary cap calculations? Do they count the maxmimum or some formula on likely achievable
    Message 1 of 4 , Jul 7, 2004
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      Anybody know how incentive contracts are calculated with regards to
      salary cap calculations? Do they count the maxmimum or some formula
      on likely achievable measures? I understand Camby's contract includes
      incentive based on games played and looking at his history I wonder
      if the Nugs will have more cap space than people think
    • igor eduardo küpfer
      ... I don t think it will affect the Nug s cap space much. http://members.cox.net/lmcoon/salarycap.htm#59 59. Can incentives be built into a contract? How do
      Message 2 of 4 , Jul 7, 2004
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        tajallie@... wrote:
        > Anybody know how incentive contracts are calculated with regards to
        > salary cap calculations? Do they count the maxmimum or some formula
        > on likely achievable measures? I understand Camby's contract includes
        > incentive based on games played and looking at his history I wonder
        > if the Nugs will have more cap space than people think
        >

        I don't think it will affect the Nug's cap space much.

        http://members.cox.net/lmcoon/salarycap.htm#59


        59. Can incentives be built into a contract? How do they count against the
        cap?

        Performance bonuses (incentives) are allowed, but they are limited to 25% of
        the value of the contract [...]

        Incentives are included in team salary if they are "likely to be achieved."
        They do not count if they are not likely to be achieved [...] The league
        office determines what is likely and what is not. Their general guideline is
        whether the criteria was achieved in the previous year. For example, if a
        player had seven assists per game the previous season, then an incentive
        based on seven assists per game would probably be classified as "likely to
        be achieved," but an incentive based on eight assists per game would
        probably be classified as "not likely to be achieved."

        [...]

        ed
      • Gabe Farkas
        according to what i ve read by larry coon, the incentives are judged based on whether they are likely or not likely and then the likely ones are counted as
        Message 3 of 4 , Jul 7, 2004
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          according to what i've read by larry coon, the
          incentives are judged based on whether they are
          "likely" or "not likely" and then the likely ones are
          counted as if they are there until they aren't.


          --- tajallie@... wrote:
          > Anybody know how incentive contracts are calculated
          > with regards to
          > salary cap calculations? Do they count the maxmimum
          > or some formula
          > on likely achievable measures? I understand Camby's
          > contract includes
          > incentive based on games played and looking at his
          > history I wonder
          > if the Nugs will have more cap space than people
          > think
          >
          >




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        • Kevin Pelton
          ... Based on this, I d imagine that any cap benefit to the Nuggets from these incentives would only be realized in future seasons (if Camby continues to have
          Message 4 of 4 , Jul 7, 2004
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            > according to what i've read by larry coon, the
            > incentives are judged based on whether they are
            > "likely" or "not likely" and then the likely ones are
            > counted as if they are there until they aren't.

            Based on this, I'd imagine that any cap benefit to the Nuggets from
            these incentives would only be realized in future seasons (if Camby
            continues to have injury problems). Because of the number of games
            Camby played last year, the games played incentive would probably be
            deemed "likely" for next season.

            That changes if the games threshold is something like 75 or 80.
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