Quote:
Originally Posted by Manhattanboy
What is the reason for the split between salary and signing bonuses with the huge difference in allocation?
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- Signing bonuses are a lump sum payment on July 1. Salary is paid twice monthly from the start to end of the regular season. Might as well get as much up front as you can.
- If the contract is bought out, the player still receives all signing bonuses in full, so it effectively makes the contract buyout proof (see Lucic, Milan).
Contrary to what some people say (including some media members), signing bonuses are still subject to escrow withholding, so it's not to avoid paying escrow.