unlvmariners
Well-Known Member
I think they would do it with the highest possible amount. Businesses always believe it is better to be safe than sorry.
That is how I would think they would do it, its the smart way. I haven't been able to find much info online about how it all works and each organization could do it a little differently. My guess is they have two different payroll numbers first one being guaranteed contracts and the second being how much possible incentive contracts they will allow. Example: The team is allowed to spend around $90 million in guaranteed contracts, on top of that they are allowed to spend a maximum of $10 million in incentives. At the end of the season the total payroll would end up being between $90-$100M, of course players being traded, called up, released etc. could change the overall number.
From our point of view though it can make their payroll numbers a little misleading. Giving the fans the appearance that they are increasing payroll X amount from last season when in reality it is much less.
I don't know but if anyone out there knows the answer I am curious to know how it works.