Do likely to be earned incentives count against the salary cap?

The reasoning behind the correct answer is that likely to be earned incentives do indeed count against the salary cap. Incentives are classified in two categories: likely to be earned and not likely to be earned.

Likely to be earned incentives are those that the player achieved in the previous season, and therefore, it is anticipated that the player will achieve these incentives again. Since the salary cap is about ensuring that teams do not exceed a certain threshold for payroll, teams must account for these incentives in their salary cap calculations. This is to maintain fairness and competitive balance within the league.

Understanding this concept is crucial for evaluating team financial strategies and how they manage player contracts in relation to the salary cap.