Ahh... that scene from the holiday classic National Lampoon's Christmas Vacation when Clark Griswold is forced to confront his boss about the lack of bonus in this particular year. "I've gotten a Christmas bonus every year but this one. You don't want to give bonuses, fine. But when people depend on them as part of their salary, well what you did just plain... sucks."
Bonuses... Heading into NFL week 18 there are two big stories across the league - finalizing the Playoff positioning and individual player bonuses that are still up for grabs with 1 game to go. NFL players and other professional athletes are likely to have contracts riddled with incentives and bonuses. Starting bonus, scoring bonus, win bonus, many personal statistical bonuses, playing time or participation bonuses, playoff bonuses, post season award bonuses are all examples of how athletes may significantly impact their annual salary.
Heading into week 18, quarterbacks Baker Mayfield and Geno Smith both had $2M playoff bonuses on the line. Jadeveon Clowney needs a half of a sack to secure $750K. Wide Receiver Darius Slayton needs to just be active for the final game against the Eagles to earn $750K. These incentives are quite significant. There was a memorable moment where Rob Gronkowski needed one more catch to earn a $1M bonus. Tom Brady obliged and the celebration of that catch resembled a late game touchdown.
Contracts play a massive role in the Business of Sport. What are the advantages and disadvantages to these contract incentives? Should more contracts be based on performance? Why are guaranteed contracts both valued and avoided? Think of some examples where each of these arrangements could be positive or negative for teams and players.
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