What happens if a veteran player did not meet the performance threshold in the prior year?

If a veteran player did not meet the performance threshold in the prior year, the correct understanding is that the incentive is considered Not Likely To Be Earned (NLTBE). This designation implies that the player did not perform at a level that would make the achievement of the incentive probable based on their previous performance.

NLTBE incentives are not counted against the salary cap until they are actually earned; thus, they represent a lower risk for teams when budgeting for cap space. They vary from Likely To Be Earned (LTBE) incentives, which are calculated differently and do have immediate salary cap implications because the player had previously met the threshold.

Understanding the implications of NLTBE in veteran contracts helps clarify team financial strategies and how player performance influences contract negotiations and cap management.