Restructuring Contracts

[jcoombs16]

This will create a more liquid market for long-term contracts.  This is a good rule to put in place.

[Colby]

We need some voting action on this old topic.

[Dan Wood]

Not that I have a vote, but I am a little fuzzy on what is being proposed here. Can someone use an example of a current player to break it down for me?

Thanks
D

[Colby]

Restructuring Contracts

• Annual salary after such restructuring must be $4m+
• Restructuring allows annual salary to be reduced if player's market value (extension price) is less than or equal to half that of what he is paid.
• Total reduction in salary is converted into a guaranteed signing bonus during the current (or upcoming for off-season) year.
• Restructuring of contracts is not allowed during the period after the trade deadline and before the off-season.

Deal must be multiple years -- can't be last year of contract.

This part was taken out because it doesn't matter if there is one year left.  The annual salary would remain the same.

Here is an example using hypothetical rankings and market values with a real contract.

Derek Lowe, $15.5m (2012)

Let's say his market value is $5.5m, and the team owning him at the time has plenty of cap space.  The restructuring says that his new annual say is $5.5m.  However, the leftover money now front-loaded to him in the form of a bonus (100% guaranteed).  The signing bonus is then a whopping $30m.

Now, let's say the team doesn't have that cap room, but they want to restructure the contract a little bit.  Well, that example is the extreme... the team can play the middle ground and reduce the annual salary to $10.5m per say for a signing bonus of $15m.

Such restructuring of contracts is not allowed from August 1st to the end of the playoffs to prevent teams from abusing the restructuring to make it count for an additional season.

[Mr.TradeKing]

I cringed when I read that name.  D. Lowe is a cuss word around these parts lol.

[lp815]

I'll approve.

[clidwin]

ill approve.......been a little busy, sorry fellas

[rcankosy]

I do NOT approve.  We already have a rule on the books for buyouts.

[Colby]

I do NOT approve.  We already have a rule on the books for buyouts.

Buyouts are for dropping the player.

[joeshmoe]

hey, like in the real leagues, do bonuses move around with a player?  Say Lowe is signed to the 5.5, the bonus stays with the team who negotiated the restructure, right?  If he's traded, from team A to team B, team A would still have the bonus on their books correct?