Signing bonus
A signing bonus or sign-on bonus is a sum of money paid to a new
To encourage employees to stay at the organization, there are often clauses in the contract whereby if the employee quits before a specified period, they must return the signing bonus. In sports contracts, the full amount of signing bonuses is not always paid immediately, but spread out over time. In such cases, the main difference between a signing bonus and base salary is that the former is "guaranteed" money meaning the team is obligated to pay the bonus when due even if it cuts the player, unless the player retires or the contract is otherwise terminated due to a significant breach on the part of the player.
As of March 2019, Aaron Rodgers had received the highest signing bonus in National Football League history, at $57.5 million.[2] As of July 2023, Paul Skenes had received the largest signing bonus in Major League Baseball draft history, at $9.2 million.[3]
See also
- Advance payment
- Bonus rule, a defunct policy within Major League Baseball
- Golden hello
- Play or pay contract
- Roster bonus
References
- ^ "Baseball Signing Bonus". Baseball-almanac.com. Retrieved 19 November 2019.
- ^ "Aaron Rodgers, Khalil Mack lead 2019 All-Paid Team". NFL.com. Retrieved 19 November 2019.
- ^ Beck, Jason (30 June 2020). "Tigers, top pick Torkelson agree to deal". MLB.com. Retrieved 1 July 2020.