Earnie the Eagle
Bencher
Craigm said:Earnie the Eagle said:Would someone be kind enough to explain backloading, thanks,
Player wants $300k per year for 3 years.
We only have $100k avail in our cap for this year, but $350k avail in year 2 and heaps in year 3.
So we can't pay player $300k each year because of the cap, but we cab still get him the equivalent $900k over 3 years by backloading his contract, so he gets the following
Year 1 - $100k
Year 2 - $350k
Year 3 - $450k
Total equals $900k over 3 years.
It is basically a legal way to rort the salary cap which I am amazed the NRL still hasn't shut down.
Thanks mate, hope it works in our favour.
Thanks BE.Berkeley_Eagle said:Moondog said:In financial terms, to backload is to defer payment until the end of a budget period or the end of a contract.Earnie the Eagle said:Would someone be kind enough to explain backloading, thanks,
Player signs a $1,200,000 x 5 years deal
year 1 $150,000
year 2 $150,000
year 3 $200,000
year 4 $250,000
year 5 $450,000