Question: Now that 2009 is the last capped year, are there rules that impact player contract negotiations and a club’s salary cap planning?
Answer: Yes. Here are the key differences:
* After the last game of the 2008 regular season, signing bonus proration is reduced from a maximum of six years to a maximum of five years.
* In 2009, there is no June 1 rule for Signing Bonus acceleration. If a player is removed from the roster or his contract is assigned via waivers or trade at any time in the 2009 League Year, any unamortized signing bonus will be immediately included in Team Salary.
* There is no year-end netting of incentives in 2009. Not-likely-to-be-earned incentives are charged to team salary immediately when earned, and likely-to-be-earned incentives are deducted when they are no longer possible to earn.
* Guaranteed salary from 2010 and beyond is reallocated to capped years unless the entire 2009 salary is guaranteed.
* 50% of guaranteed salary in any League Year beyond 2012 is reallocated to capped years.
* The 30% increase rule restricts salary increases from 2009 to 2010. For example: a player with a $500,000 Salary in 2009 would be limited to annual salary increases of $150,000 ($500,000 x 30%) beginning in 2010.
* A team can include only three veteran team incentives in a player contract covering 2009 and beyond. These incentives must also be coupled with a playtime requirement. Previously, clubs were limited to eight team incentives and no playtime requirement.
Question: In addition to the right to designate a Franchise (or Transition) Player each capped year, can clubs designate additional players in the uncapped year?
Answer: Yes, one additional player can be tagged. In capped years (2008 and 2009), a club may designate a Franchise Player or a Transition Player. In the uncapped year (2010), a club may designate one additional Transition Player. A Transition Player must be offered a minimum of the average of the top 10 salaries of the prior season at the player’s position or 120 percent of the player’s previous year’s salary, whichever is greater. A Transition Player designation gives the club a first-refusal right to match within seven days an offer sheet given to the player by another club after his contract expires. If the club matches, it retains the player. If it does not match, it receives no compensation.
Question: What is the Final Eight Plan?
Answer: During the uncapped year, the eight clubs that make the divisional playoffs in the previous season have additional restrictions that limit their ability to sign Unrestricted Free Agents from other clubs. In general, the four clubs participating in the Championship Games are limited in the number of free agents that they may sign; the limit is determined by the number of their own free agents signing with other clubs. For the four clubs that lose in the Divisional playoffs, in addition to having the ability to sign free agents based on the number of their own free agents signing with other clubs, they may also sign players based on specific financial parameters.
