Restructuring Contracts

[Colby]

Restructuring Contracts
To keep it simple, here is how I propose it.

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

No taxes or anything for this since much more is guaranteed to the player.  Like the contract buyout, this would be a rarely used contract strategy, but it correlates well to real life and keeps all of the money there for the player.

[bridgestone]

I like this a lot and would love it if it would have been a rule a year ago.  I would certainly use this to front load Chipper's contract.  One issue I have with this is that a GM could do this the last day of the season.  Perhaps it shouldn't be allowed from the trade deadline to the end of the playoffs?

[Canada8999]

I haven't had a chance to think this one through yet, but if we did pass it I think it should include a clause that the contract must be at least 1 year old before it can be restructured - we are not allowed to front-load contracts during FA, we shouldn't be able to circumvent that through this rule (would make bidding too complex).

[Colby]

I haven't had a chance to think this one through yet, but if we did pass it I think it should include a clause that the contract must be at least 1 year old before it can be restructured - we are not allowed to front-load contracts during FA, we shouldn't be able to circumvent that through this rule (would make bidding too complex).

Correct.  I want this to be used for special circumstances like the buyout.  I think the buyout has only been enacted twice so far.  Teams still avoid it because they want the cap room for the current year.

[lp815]

I'll agree, a contract should have an age of at least one year before a GM can restructure.  Everything else looks pretty good so far with this, when Colb wants a vote (and barring any other changes), I think I'll approve.

[Colby]

This has been sitting around for two weeks, but I think we have everything ready for a vote.  Jake appears to have support for this, as well as do Ben and I, but I want to hear something official.

I vote YES.

[Mr.TradeKing]

Sadly, I do not have a vote but I think with the requirements being atleast a 1 year old AND before the trade deadline, makes this a very good option. I can't think of any loopholes with the current requirements.

~MTK

[lp815]

Colby, does your proposal include Mike's idea of this transaction being prohibited from the trade deadling to the end of the playoffs?

[Colby]

Colby, does your proposal include Mike's idea of this transaction being prohibited from the trade deadling to the end of the playoffs?

Correct... here is the updated proposal.

Restructuring Contracts

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

[lp815]

I'll approve.