Salaries and Compensation in the NFL
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Compensation in the NFL is complicated and consists of player salaries, incentive pay, and bonus pay. Compensation is impacted by the NFL salary cap, a limit on the amount a team can spend on compensation that was $67.4 million for the 2001-02 season, (Hall and Lim, 2002). Salaries and incentives both count against the salary cap each year, but signing bonuses are calculated over the life of the playerÆs contract.Both player salaries and incentives have a negative impact on players, coaches, agents, teams, and even fans, due to the fact that such compensation is often meted out based on salary cap concerns. For example, when a player is offered incentives for a certain number of rushing yards, receiving yards, tackles, or sacks, the playerÆs performance is often related to incentives and not what is in the best interest of the team. Coaches can often make decisions to bench a player, when they are close to attaining incentive pay during years when salary caps are tight. Teams will often
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Approximate Word count = 695
Approximate Pages = 3 (250 words per page)
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