Proration
Definition and explanation for NFLPA exam preparation
Definition
The spreading of signing bonus money evenly across the years of a contract for cap accounting purposes, up to a maximum of 5 years.
Exam Tip
Understanding Proration is essential for the NFLPA certification exam. This concept frequently appears in questions about financial and is often tested alongside related terms like Signing Bonus and Cap Hit.
Related Terms
Dead Money
Salary cap charges for players no longer on the team's roster, typically from remaining prorated bonus money when a player is cut or traded.
Cap Hit
The total amount a player counts against the salary cap in a given year, including base salary, prorated bonuses, and likely-to-be-earned incentives.
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.