New Extension, Cap, and Trading Rules Effective Immediately

[Colby]

The RC has been discussing several adjustments to the rulebook to close a lot of issues we have noticed over the past few years.  We are hoping much of this will eliminate confusion and make the league both fairer and realistic.

Rule #1 - Future Cap Management inspired by the 2010 Angels: Management of salary caps for not just current year but future six years.  This is something we are doing in New Era and is much more realistic for a franchises' books.  It also prevents GMs from financially ruining future years with cash exchanges.  Future salary caps will have a buffer of 30% but no more than $20m.  For example, if the Pirates’ cap in 2013 is expected to be $62m then the 30% buffer allows the team to have a projected salary based on current contracts of $80.6m in 2013.

Rule #2 – Signing window for expired prospect contracts: Prospect extensions on expired prospect contracts will be the only type of extensions allowable for expired contracts in the offseason.  Therefore, after the 2011 regular season is over, a P-2011 contract is still eligible for the prospect extension at the 2011 rate.  This window for prospect extensions is open until one week prior to the beginning of offseason free agency.

Rule #3 – True Extensions: Extensions are being changed, so that they are true contract extensions that take place after the current contract expires. The extension is added on in future years, and can be given to a player at any time during their current contract.  For example, a 2011 contract could get a three year extension starting in 2012 and ending in 2014.   We still have minimum and maximum years protecting this new contract status, so the total number of years may not increase more than six.  For extensions, term limits apply for years after the current year, so for that 2011 contract example, a $1.5m salary could be given across three years: 2012-2014.  Another example, say it is 2011, and a player has a $1m (2012) contract.  You want to give them an extension at $1.5m/year (term limit of 3 years).  The term limit says that the contract extension can only run through 2014, so the player is paid $1m in 2011, $1m in 2012, $1.5m in 2013, and $1.5m in 2014.  The three-year limit applies to future years!

Rule #4 - Prince Fielder Rule: Contract extensions on expired veteran contracts not be allowed after the regular season ends.  It really isn't feasible to have this for such a realistic league.  This puts more onus on the trade deadline and free agency.  Players signed to an extension cannot be traded for 60 days.

Rule #5 – June 1st window: In addition to our 60-day NTC rule, any players signed to extensions and FA contracts in the offseason cannot be traded until June 1st the following year.

Rule #6 – Extending players less than MV: A player may be given an extension that is less than their current salary.  However, such an extension has three restrictions. 
1) The eligibility period for granting a player an extension below their current salary is only in the last year of their contract.
2) On top of the minimum and maximum years for contracts, the longest this type of extension can be is two years.
3) New salary may be no less than 70% of previous salary.  Therefore, a player with market value of $2.5m, current one-year deal of $5m, can have an extension for two years equal to $3.5m (0.7 * 5 = 3.5).

[Daniel]

Great job, guys, everything looks real good. Couple of questions though: Do we round up or down using the 70% rule depending on which amount is closer? Or do we always round up? Also, when signing players to extensions at regular rate or at the discount rate can it become effective immediately? Or will it always start the following season? Thanks.

[Dan Wood]

Great job, guys, everything looks real good. Couple of questions though: Do we round up or down using the 70% rule depending on which amount is closer? Or do we always round up? Also, when signing players to extensions at regular rate or at the discount rate can it become effective immediately? Or will it always start the following season? Thanks.

.5 and up, round up....4 and down, round down... extension catch the following year at the discount

[Dan Wood]

I just came across a loop hole... with prospect contracts, do they take effect the following year or immediately? My vote is for immediately.

Just an example. I recently extended Ike Davis, the money started this year. Should it have started next year given the recent rules?

Personally with the steep discount of the prospect extension, I think it should take place immediately, especially since you will have the chance to sign the player in the off season now. But you will risk the chance of his value improving. Just my two cents. I think this needs to be discussed, unless it was discussed and I missed it.

[Colby]

We discussed the prospect extension issue... and for simplicity sakes, the extension kicks in after the current one similar to how the Longoria deal happened (I think).

Daniel, rounding is always to the nearest $500k.

[Dan Wood]

I'm confused... so if someone signs their prospect to an extension, the extension kicks in following the end of his prospect eligibility, or the following year... cause if that is the case take the extension off of Ike until this is sorted out. I didn't foresee this becoming an issue when he was signed.

My take on it, if you want the full percentage then you take it that year. You want the player signed for the following year you take the following years percentage. For instance, Ike again. Signed this year it is 60%, if I want the contract to take hold next year, then it should be 50%, so on and so forth. I think this needs to be discussed further.

[Dan Wood]

Colby would you mind moving this to/ starting a separate topic... Thanks

[Flash]

Contract info above :agent: