Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: June 22, 2015
The Firm
201-896-4100 info@sh-law.comBy 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.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!