When does an NLTBE roster bonus count against the cap?

The understanding of when a Not Likely To Be Earned (NLTBE) roster bonus counts against the salary cap is crucial for teams managing their financial resources. A roster bonus is classified as NLTBE when, based on prior performance metrics, it is considered unlikely that the player will reach the required conditions to earn that bonus during the upcoming season.

When an NLTBE bonus is earned during the season, it counts against the salary cap immediately. This reflects the principle that salary cap accounting operates on the basis of actual performance and incentives achieved during the current season. So, once the player meets the performance metrics that allow them to earn that bonus, the corresponding cap hit is recorded.

This timing is essential for teams to understand, as they must plan their cap space accordingly once those bonuses are recognized due to performance achievements within that season. The dynamic nature of NLTBE bonuses highlights how teams must remain vigilant throughout the season regarding player performances and potential cap implications.