Proposed rule changes for 12/13

[norrya66]

Revised contract limits for extensions
$6.5m+ - 5 years (the overall limit)
$5 to $6.4m - 4 or 5 years
$3.5 to $4.9m - 3 or 4 years
$2 to $3.4m - 2 or 3 years
$0 to $1.9m - 1 or 2 years

This incorporates maximums since the current proposal for minimums does not jive with our maximum contract length rules.  These maximums would also be used for our contract limits.  Of course, minimums won't apply to FA acquisitions. 

Revised contract buyout
Teams are now given the option to buyout player contracts at a reduced rate.  The buyout for a player is equal to 66% of the players total remaining contract.  This buyout may be paid out all at once in the current contract year, or it may be financed over a maximum of 3 years.  The buyout cannot be financed longer than the current remaining contract.  For example, a player with 2 years left on his contract cannot be bought out over 3 years.  The maximum buyout years for that player is 2 years.

Example:
D Drew Doughty, $6.8m (2014-2015)
Remaining contract value: $20.4m
1 year buyout: X D Drew Doughty, $13.5m (2012-2013)
2 year buyout: X D Drew Doughty, $6.8m (2013-2014)
3 year buyout: X D Drew Doughty, $4.5m (2014-2015)

***A GM may at any time decide to re-allocate funds to a buyout.  For instance, if LA is to buyout Doughty over 3 years, but in year 2 he realizes he has funds to spare, he may use funds in the 2nd year to pay off some or all of what he owes in the 3rd year in order to clear up future cap space.

How do you all feel about these revisions?

 

[snugerud]

Are the rule changes in effect for this years extensions? 
Or will it only be for next year? 

[Rob]

This year.

[Whomp]

What would be my buyout for Scott Gomez with the new rules and the fact I now am on the hook for 50% of his current contract?

[Rob]

What would be my buyout for Scott Gomez with the new rules and the fact I now am on the hook for 50% of his current contract?

Unfortunately his contract would be grandfathered in under the old rules.  You won't be able to buyout any contracts you released in 11/12.

[Rob]

These changes are now official and effective immediately.   

Thanks everyone for your input!

[jmtrops]

So if I want to buy out a players contract and he is in his last year then my cap hit will be 66% of that last year?

[Rob]

So if I want to buy out a players contract and he is in his last year then my cap hit will be 66% of that last year?

Yup!