Ascending and/or descending contracts Topic

Quick question regarding salaries.

What is the max and min difference salaries can be year to year? Is it a dollar amount or percentage?

9/22/2010 1:37 PM
From the Help section:

"In a two-year contract, neither season can comprise more than 60% of the total value of the contract. In a three-year contract, no season can comprise more than 40% of the total value of the contract. In a four-year contract, no season can comprise more than 30% of the total value of the contract. In a five-year contract, no season can comprise more than 25% or less than 10% of the total value of the contract."
9/22/2010 1:57 PM
This is one of the instances where the HELP is not entirely accurate.

The yearly max and min are not percentages of the "total value of the contract" but instead percentages of the total of the combined yearly salaries. This is primarily (exclusively?) an issue when you try and offer a bonus.

For example, a $30M total value contract over 5 years where $10M is in bonus money is treated differently (for max/min yearly salary) than a $30M total value contract over 5 years with no bonus money. If you  is have no bonus money, the max per season is $7.5M (25% of $30M); the min is $3M (10% of $30M). If you have $10M bonus money, the max per season is $5M (25% of $20M, the $30M total value minus the $10M bonus); the min is $2M (10% of that $20M).
9/22/2010 2:33 PM
Thanks guys, this is exactly what I was looking for.
9/22/2010 10:59 PM
Ascending and/or descending contracts Topic

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