What is a signing bonus, and how does it affect the salary cap?

A signing bonus is indeed a one-time payment given to a player when they sign a contract, but its impact on the salary cap is what makes option B the correct choice. When a team pays a signing bonus, it doesn't count entirely against the salary cap in the year it is paid. Instead, the signing bonus is prorated, meaning that it is spread out evenly over the life of the contract for salary cap purposes. This allows teams to manage their salary cap more effectively by distributing large bonuses over multiple years.

For example, if a player receives a $10 million signing bonus on a five-year contract, only $2 million would count against the salary cap each year. This prorated method enables teams to free up immediate cap space while still committing to the bonus over time.

The other options do not accurately reflect the mechanics or purpose of signing bonuses in relation to salary cap management. Understanding this concept is essential for grasping how teams negotiate contracts while adhering to salary cap regulations.