Which rule applies to the treatment of signing bonuses upon player release?

The treatment of signing bonuses upon a player’s release is governed by specific prorating regulations that depend on when the release takes place. When a player is signed, the signing bonus is typically spread out (prorated) over the life of the contract for salary cap purposes, allowing teams to manage their cap space over multiple years effectively.

If a player is released, the unamortized portion of the signing bonus accelerates into the current year's salary cap, impacting the team's cap space significantly. The timing of the release is crucial because the earlier a player is released in the contract's life, the more unamortized bonus remains, potentially leading to a larger cap hit. This nuanced treatment ensures that teams must carefully consider the financial implications when making roster decisions, particularly near the end of the season or during critical cap adjustments. For instance, releasing a player before a certain date could lead to different cap ramifications compared to releasing them after that date, hence the importance of adherence to specific prorating regulations based on timing.