What condition triggers the semi-monthly payment schedule if a contract is terminated?

The semi-monthly payment schedule is triggered when the player is owed less than $250K upon the termination of the contract. This payment mechanism is designed to ensure that players who do not have a high outstanding balance receive their payments more frequently, which can be crucial for players who may rely on those payments for their living expenses.

Implementing this system helps maintain financial stability for players while also managing the payment process effectively for teams. In contrast, higher amounts owed may entail different contractual or financial priorities, resulting in alternative payment schedules or terms. Understanding this threshold is essential for agents and players alike to manage expectations regarding contract termination scenarios.