Interesting note (interesting to me anyway). DD hit an incentive last season, presumably for making the all-star game. 600k bonus money for him last year.
The interesting bit is that it adds 600k to last year's tax calculation (we were well clear), AND to THIS year's cap calculation.
This is because of the way incentives are classified. They are either likely or unlikely. Likely incentives count against the cap all year. Unlikely ones don't. And any incentives that are actually met count against the final tax calculation (and vice versa - likely bonuses that are not met do not count against the tax even though they counted against the cap all year long).
And the way they are classified is determined entirely (in most cases) by whether they achieved that incentive the year before. DD didn't make the 2013 all-star game, so for 2013-14, his incentive was classified as unlikely. So the 600k did not count against the cap. He achieved the incentive, so the 600k gets paid to him and counts against the tax.
This year, DD's incentive is listed as likely, since he made the 2014 all-star game. As such, the 600k will count against the cap all year long (I'm shocked this wasn't reported earlier, as it had implications in the event we lost Lowry or our other players, and has implications for the tax calculation). And will count against the tax only if he makes the all-star team again this year.
The interesting bit is that it adds 600k to last year's tax calculation (we were well clear), AND to THIS year's cap calculation.
This is because of the way incentives are classified. They are either likely or unlikely. Likely incentives count against the cap all year. Unlikely ones don't. And any incentives that are actually met count against the final tax calculation (and vice versa - likely bonuses that are not met do not count against the tax even though they counted against the cap all year long).
And the way they are classified is determined entirely (in most cases) by whether they achieved that incentive the year before. DD didn't make the 2013 all-star game, so for 2013-14, his incentive was classified as unlikely. So the 600k did not count against the cap. He achieved the incentive, so the 600k gets paid to him and counts against the tax.
This year, DD's incentive is listed as likely, since he made the 2014 all-star game. As such, the 600k will count against the cap all year long (I'm shocked this wasn't reported earlier, as it had implications in the event we lost Lowry or our other players, and has implications for the tax calculation). And will count against the tax only if he makes the all-star team again this year.
Comment