Option Bonus
Definition and explanation for NFLPA exam preparation
Definition
A bonus paid when a team exercises an option in the contract. Can be prorated like a signing bonus for cap purposes.
Exam Tip
Understanding Option Bonus is essential for the NFLPA certification exam. This concept frequently appears in questions about contract terms and is often tested alongside related terms like Signing Bonus and Roster Bonus.
Related Terms
Signing Bonus
An upfront payment to a player that is prorated over the life of the contract (up to 5 years) for salary cap purposes.
Proration
The spreading of signing bonus money evenly across the years of a contract for cap accounting purposes, up to a maximum of 5 years.
Roster Bonus
A bonus paid to a player for being on the roster on a specific date. Unlike signing bonuses, it counts fully against the cap in the year earned.