Contracts and signing bonuses

Dose anyone have an idea that can be used to help increase the money spend on players, I understand the cfl has increased the salary cap but not by much, what about changing the signing bonuses to not be apart of the salary cap but have certain limits on how many players get big signing bonuses to help with making the league more attractive

Like have 2 players on roster that arnt limited to bounces then after have 3 to 5 players that are limited to $500,000 bounce and then limit the league wide signing bonuse to $150,000, and do not include signing bonuses to salary caps

Where’s the extra money coming from? Teams aren’t exactly rolling in cash.

No matter how you slice it, bonuses are part of the Salary Management System. Usually, if a player receives a larger than usual bonus, his base salary will be affected/reduced.

At the end of the calendar year, Teams know if funds are still available under the current year of the SMS. Quite often, Teams will then sign top players for the upcoming years and may give the player a larger bonus and pay the player less in the upcoming year, thus creating more flexibility. Ex: You want to pay your QB $450,000 but also know that other players will want more in the upcoming year. If your QB agrees, you give him a bonus of $125,000 -if funds available on current SMS- and a base salary of $325,000. for the upcoming year.


AND, from what I have read with previous contract re-works, for Americans moving money to signing bonuses means the contract total can be less as apparently signing bonuses are taxed at a lower rate.

Correct, here is a great read on it from Dunk

Why CFL players restructure their contracts
Posted on February 25, 2016 by Justin Dunk

While it’s easy to understand why Montreal Alouettes general manager Jim Popp would want to restructure the contracts of highly-paid stars like receiver S.J. Green and linebackers Chip Cox and Bear Woods – more salary cap flexibility – it does beg an important question: what’s in it for the player?

In a word: money.

American players pay income tax in Canada just like the rest of us do but a provision in the Canada-U.S. income tax treaty allows international players who maintain a permanent residence south of the border to be taxed just 15 per cent on any signing bonus – much less than their usual Canadian tax rate.

According to CFL sources, Green’s original contract called for a salary of $250,000 in 2016, meaning he would have expected to pay approximately $105,000 in federal and provincial taxes for take home pay in the $145,000 range.

Under the newly-restructured deal, Green will be paid $225,000 but he received a $100,000 signing bonus. The bonus is taxed at 15 per cent ($15,000) while the remainder is taxed less because of Canada’s progressive tax system which sees higher income earners taxed at a higher rate. His total tax burden now about $58,000, leaving $167,000 remaining.

So even though the Green’s total compensation is $25,000 less he is actually taking home $22,000 more – getting a significant chunk of that money immediately. Cox, meanwhile goes from approximately $190,000 to $160,000 with a $65,000 bonus and sees a net gain of around $6,000.

The Alouettes, meanwhile, have saved more than $50,000 off their $5.1 million salary cap.

More here … contracts/