How does the NFL Salary Cap treat cash incentives?
All incentives are included in team salary if they are “likely to be earned” (LTBE). LTBE incentives are performance levels that the player or team has reached in the previous year. For example, if a quarterback threw twenty touchdowns last year and his incentive clause for this year is set at fifteen touchdowns, then this incentive is likely to be earned. Also, incentives that are in the sole control of the player, like non-guaranteed reporting bonuses and off-season workout and weight bonuses, are considered LTBE. An impartial arbitrator will hear disputes between the owners and the players concerning what should be considered LTBE (especially for rookies or veterans who did not play in the prior year). Conversely, if a player did not reach the performance incentive in the previous year, the incentive is deemed “not likely to be earned” (NLTBE) and is not included in team salary. To determine whether a clause is LTBE or NLTBE for Salary Cap purposes (i.e., not whether the player actu
