Are signing bonuses included under the 30% Rule?

The correct understanding is that signing bonuses are generally not included under the 30% Rule. The 30% Rule refers to how much a player's salary can increase in subsequent years of their contract compared to the previous season's salary within the constraints of the salary cap. This rule primarily applies to base salary and certain forms of compensation, but signing bonuses are treated differently.

When a signing bonus is paid, it is typically amortized over the length of the contract for cap purposes, which means it is spread out and accounted for in the salary cap calculations. Therefore, signing bonuses do not directly count against the 30% salary increase limitation for future salary amounts, which allows teams to structure contracts in a way that maximizes flexibility within salary cap constraints.

Options that suggest that signing bonuses are included or only partially included could lead to confusion regarding how player contracts are structured and evaluated under the salary cap. Understanding that signing bonuses are excluded helps clarify how contracts can be negotiated and how teams can manage their salary cap effectively.