Beyond Signing Bonuses: Performance Pays

Think about a star athlete signing a huge contract. The headlines usually scream about the massive guaranteed salary. But behind the scenes, there's often another layer called performance bonuses. These bonuses mean extra cash on top of that base salary if a player hits certain milestones.

Think of it like this: signing bonuses are the foundation, the guaranteed money. Performance bonuses are the potential upside. Maybe it's a bonus for scoring a certain number of goals in hockey, or leading the league in strikeouts as a pitcher. Sometimes there are even team-based bonuses tied to making the playoffs or winning the championship.

This system is nothing new and is often seen in many other places, beyond sports. Lots of industries use signing bonuses to attract top talent, for example, tech companies when luring skilled engineers. Welcome bonuses at online casinos are another example, designed to create an incentive for new customers to sign up. The system works for everyone, so why change it? Well, there are a couple of reasons why performance pay might make more sense.

We Love to Do Things a Bit Different

When it comes to contracts, the Green Bay Packers do things a little differently than most teams. You won't find a whole lot of fancy structures or complicated guarantees in those deals. Signing bonuses are pretty much the main source of guaranteed money for a new Packer, and even those can come with some strings attached.

See, sometimes they'll have roster bonuses payable a few years down the line. At first glance, they look like extra guaranteed money, but they're really more like incentives to stick around. The Packers have been known to use these instead of spreading out the signing bonus more evenly, or offering other forms of guaranteed money.

This approach might seem a little old-fashioned, even a bit risky for players compared to what they could get elsewhere. But when you're dealing with a historic franchise like Green Bay, there's a certain prestige factor that comes into play. Plus, the Packers have a track record of taking care of their star performers, even if the initial contract doesn't scream guaranteed dollars.

Shaking Things Up From The Ground Up

It's pretty cool to see guys like Zach Tom and Rasheed Walker cashing in on their performance, isn't it? These young tackles stepped up big time for the Packers last season, especially considering they weren't exactly expected to be starters. Tom showed versatility and a strong work ethic, while Walker, even with some rookie mistakes, displayed flashes of the physical talent that made him a draft prospect. And that’s the thing about the NFL. It’s all about opportunity, so performance pay makes more sense here than in some other sports. But, as good as it is, the performance pay system in the NFL certainly had a few ripple effects within the league. It gave under-the-radar players a chance for a significant payday. It also impacted how teams build their rosters. Smart teams got the opportunity to find diamonds in the rough. Players with potential who are on cheap rookie contracts. If these guys develop and contribute major minutes, the team gets great value, and the players get a well-earned bonus.

You can see why this appeals to a team like the Packers. It directly rewards players for being on the field and contributing. In a sport as grueling as football, where injuries are a constant risk, it incentivizes our guys to stay healthy and available. It's also considered a fairly objective system. You either played or you didn't, which takes some of the guesswork out of traditional contract bonuses.

Of course, this system doesn’t come without a few cons. Performance pay can lead to taking unnecessary risks, or even discourage veterans from mentoring younger players in fear of them taking their spot. Football is a team sport, and if players feel like their teammates' success directly impacts their own paycheck, it gets tricky. It wouldn’t be the first time money created friction, not only between the athletes, but also between the team owners. Hell, even between the union. Bottom line, we think performance pay benefits the Packers, because the Green Bay Packers are all about valuing young talent and rewarding hard work.

 

 

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Comments (2)

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stockholder's picture

May 23, 2024 at 07:16 am

And then Joe Gibbs wins 3 Super-Bowls
with less.
So when it comes to overpaying a QB.
Maybe it's old thinking and the Packers
should trade love, before he breaks the bank

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Johnblood27's picture

May 23, 2024 at 07:53 am

...or just hire Joe Gibbs...

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