Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
The Benefits of Performance Bonuses in NFL contracts
Author: Scarinci Hollenbeck, LLC
Date: June 22, 2015
Key Contacts
Back
Performance bonuses are included in many sports contracts, and are given out for fantastic feats of athleticism, such as reaching touchdown milestones or for making one of the NBA All-Defense teams.
By fulfilling these performance bonuses, athletes can earn millions more than their base contracts would otherwise indicate, making them an attractive option in their contract.
For example, incentives and salary escalators are included in some NFL contracts. Performance bonuses are often used in professional football when two sides can’t come to an agreement on base salary. If a team is unsure how a player will perform in the upcoming season – and thus, isn’t willing to pay them the extra $1 million they demand – but isn’t yet ready to give up on them either, performance incentives can prove to be an effective negotiating tool.
Salary escalators boost a player’s base pay when they reach a performance milestone. Elvis Dumervil, of the Baltimore Ravens, managed to fulfill an incentive that triggered escalators in his contract last season. In a December 2014 game, he reached the 12-sack mark for the season, and set off boosts in his base salaries for 2015, 2016 and 2017. His pay for each of those three seasons jumped by $1 million when he took the New Orleans Saints’ quarterback to the ground.
As for incentive payments, Vince Wilfork’s contract offers an example of how they work. The defensive tackle took a pay cut to resign with the New England Patriots last season, after suffering a season-ending injury the year before. Though he agreed to a lower salary, his contract included a performance bonus clause. If Wilfork managed to play 50 percent of New England’s defensive snaps, he would earn $500,000 – which he did.
For players who are coming off of injuries, who haven’t yet proved themselves on the field or who are simply aging, performance incentives can function as helpful contract clauses for both sides of salary negotiations.
- Industries: Entertainment & Media
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.