What is the treatment difference between guaranteed and non-guaranteed reporting/workout bonuses?

The distinction between guaranteed and non-guaranteed reporting or workout bonuses is crucial in the context of salary cap management and player contracts. Guaranteed bonuses are treated in a specific way: they are prorated across the duration of the contract. This means that if a player receives a guaranteed bonus, its value is divided over the remaining years of the contract for salary cap calculations. Consequently, if a workout bonus is guaranteed, it gets spread out, allowing for better salary cap management.

In contrast, non-guaranteed bonuses are treated differently. They count fully against the salary cap in the year they are earned, irrespective of the contract duration. This distinction emphasizes the more predictable financial impact of guaranteed bonuses versus the more volatile accounting of non-guaranteed bonuses in any given season.

Understanding these differences is key for teams when planning their salary caps and constructing their roster each season.