If a veteran player has a 3-year contract with a club option for Year 4 and receives a $3M option bonus in Year 2, how is it prorated?

The option bonus a veteran player receives in Year 2 can be prorated over the remaining years of the contract, which includes Year 2, Year 3, and Year 4. This is because the salary cap rules dictate that option bonuses are not only accounted for in the year they are paid but also spread over the remaining length of the contract.

In this scenario, since the contract is three years with a club option for the fourth year, the $3M option bonus is prorated over these three years, which includes the year it is received (Year 2) and the subsequent two years (Years 3 and 4). This approach to prorating helps teams manage their salary cap more effectively, allowing for a smoother distribution of the cap hit associated with the bonus.

This method aligns with standard practices in salary cap management, which aim to balance immediate financial impact with long-term planning.