What is the proration period for option bonuses?

The proration period for option bonuses occurs from the League Year when the option is exercised, extending over the remaining contract years. This means that when a player has an option bonus, that bonus amount is spread out or "prorated" across the remaining years of the contract after the option is picked up.

This approach helps teams manage their salary cap effectively, as it allows them to allocate the financial impact of the bonus over several seasons rather than incurring the full cost in just one year. Understanding the implications of this proration helps in strategic planning for roster management and financial flexibility, as teams need to account for how these bonuses will affect their salary cap situation in subsequent years after the option is exercised.

In contrast, the other options do not reflect the correct handling of option bonuses. Starting from the beginning of the contract or only the last year of the contract does not align with how bonuses are typically structured in terms of salary cap management. Similarly, treating it as if it applies only in the year the option is earned disregards the impact that proration has across the life of the contract.