What is the consequence of being deemed LTBE for a player's contract?

When a player is deemed "likely to be earned" (LTBE) in terms of their contract bonuses, it impacts how those bonuses are treated concerning the salary cap. Specifically, LTBE bonuses are factored into a team's salary cap calculations as if they will be paid out. If a player achieves a performance milestone that qualifies as LTBE, the team incurs an increased salary cap penalty when those bonuses are officially earned.

In contrast, if a bonus is classified as "not likely to be earned" (NLTBE), it does not count against the salary cap until it is actually achieved, which can alleviate immediate cap pressure for the team. Thus, designating a bonus as LTBE carries the potential for increased salary cap hits if the player achieves those performance metrics.

This nuanced structure underscores why the classification of bonuses in contracts can significantly influence a team's financial planning and salary cap management, as it can lead to increased penalties if the bonuses are subsequently earned.