Welcome to today's Free Question of the Day from Athlete Rep Lab, your trusted resource for NFLPA Contract Advisor Certification Exam preparation.
Every day until the NFLPA Contract Advisor Certification Exam, we publish an original exam-style question designed to help aspiring Contract Advisors master the NFL Collective Bargaining Agreement (CBA) and the NFLPA Regulations Governing Contract Advisors.
Today's Topic: Likely To Be Earned (LTBE) Performance Incentives
One of the most frequently tested Salary Cap concepts under Article 13 is determining whether a performance incentive is classified as Likely To Be Earned (LTBE) or Not Likely To Be Earned (NLTBE).
Many candidates mistakenly believe that an incentive becomes LTBE only after the player begins achieving the performance during the current season.
That is not how the CBA works.
Let's see if you can avoid today's exam trap.
Today's Question
A veteran running back signs a contract that includes a $500,000 performance incentive if he scores 10 rushing touchdowns during the regular season.
During the previous regular season, the player scored 11 rushing touchdowns.
During the current preseason, he scores 3 rushing touchdowns.
Under Article 13 of the NFL Collective Bargaining Agreement, how is this incentive treated for Salary Cap purposes during the current League Year?
A) The entire $500,000 incentive is Likely To Be Earned (LTBE) and counts against the Club's Team Salary on the first day of the League Year.
B) The incentive is Not Likely To Be Earned (NLTBE).
C) The incentive becomes Likely To Be Earned (LTBE) immediately after the player scores his 9th regular season touchdown.
D) The incentive does not count against the Salary Cap until the player scores his tenth regular-season rushing touchdown.
Take a moment to answer before scrolling.
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Answer & Explanation
Correct Answer
A) The entire $500,000 incentive is Likely To Be Earned (LTBE) and counts against the Club's Team Salary on the first day of the League Year.
The Rule Under Article 13
Article 13, Section 6(c)(i) provides that incentive amounts are included in Team Salary if they are "likely to be earned" during the League Year based upon the player's and/or the team's performance during the prior League Year.
For an individual performance incentive, the player's performance during the immediately preceding regular season determines whether the incentive is LTBE or NLTBE.
In this example:
Incentive threshold: 10 regular-season rushing touchdowns
Previous regular season: 11 rushing touchdowns
Because the player exceeded the required threshold during the prior regular season, the entire $500,000 incentive is classified as LTBE and is charged against the Club's Team Salary on the first day of the current League Year.
Article 13 reinforces this principle with an example stating that if a player's incentive is based on rushing touchdowns and the player achieved that performance level during the previous season, the corresponding incentive amount is automatically deemed Likely To Be Earned and counts immediately against the Salary Cap.
Core Concept for Your Exam
Remember this simple rule for individual performance incentives:
Met or exceeded the performance level during the prior regular season? → Likely To Be Earned (LTBE) → Counts against the Salary Cap at the beginning of the League Year.
Did not meet the performance level during the prior regular season? → Not Likely To Be Earned (NLTBE) → Does not count against the Salary Cap unless and until it is earned.
Most importantly, preseason statistics have no effect on whether an incentive is classified as LTBE or NLTBE.
This is one of the foundational Salary Cap concepts in Article 13 and a favorite topic on the NFLPA Contract Advisor Certification Exam.
Correct Answer: A) The entire $500,000 incentive is Likely To Be Earned (LTBE) and counts against the Club's Team Salary on the first day of the League Year.