What is the proration limit on signing, option, or OATSB bonuses?

The proration limit on signing bonuses, option bonuses, or other types of bonuses that are subject to the salary cap is five years, which also includes any option years if applicable. This means that if a team issues a signing bonus, it can spread out the cap hit over a maximum of five years. This limit is designed to provide teams with flexibility in managing their salary cap while ensuring that they account for the costs of bonuses over multiple seasons.

This rule assists in leveling the playing field within the league by preventing teams from excessively pushing cap hits into future years beyond this limit, which could create an imbalance in team spending and roster management. Thus, when bonuses are given, they are amortized over up to five years for salary cap purposes. This is an important aspect of salary cap strategy as teams must carefully plan their contracts and bonuses within these constraints.