Restructuring Contracts

[Mr.TradeKing]

Im pretty sure my last trade I didnt inherit any prospect bonuses (Mier)...am I wrong?

I have in all of mine...

~MTK

[Colby]

With it being made clear that bonuses stay with a team, let's vote on this issue.  It is my understanding that Jake and I vote YES and Roy votes NO.

[lp815]

With it being made clear that bonuses stay with a team, let's vote on this issue.  It is my understanding that Jake and I vote YES and Roy votes NO.

Correct, my vote remains yes.

[Canada8999]

 :iatp:

[clidwin]

 :iatp:

[mjmezzetti]

approve

[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.

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.

 :judge: Approved 5-1.

[MOLI643]

 :iatp:

[Colby]

Are we allowed to restructure the same deal more than once?  It seems that this could be an administrative nightmare.  Also, many of the contract extension values will be lower next year because of this.  It gives teams the ability to cheat and throw money under the cap for this year to change the entire market landscape in the future.  I think the losing vote had something right when they voted against this.

Just me $0.02 but the RC should reconsider this and realize how destructive this could be for the league's future.

This was mentioned today about our recent legislation.  This was not my intention with the original proposal, and I didn't think about this one upon it being passed.

I want the RC to consider a first-ever repeal this amendment to the rules.  Roy may have been spot on when suggesting that we shouldn't do this and keep it simple with our current rules.

[Canada8999]

Lets see how the discussion plays out in the other thread before we worry about a repeal... as I posted there, I'm not convinced yet that we made a mistake.