9-A) Contracts, Player Extensions, Restricted Free Agents
a) Teams may keep players from season to season through contract extensions, franchise tags, and transition tags.
b) Rookies acquired in the rookie draft are automatically given a 4 year contract regardless of how long they stay on the DTS. All rookie players placed on the DTS can therefore remain there for a maximum of 4 years. If activated prior to this, they will either play out their original rookie contract or be extended at the discretion of the team owner. Rookies are the only players that can be extended in the final year of their contract. For example, if a rookie is drafted in 2013, then is left on the practice squad for 4 years, he can be activated as late as February 28th, 2016 and signed to a 4 year extension.
c) Players contracts can range from 1-5 years, depending on the owners designation. Except rookies who are drafted as they get a 4 year contract.
d) Owners have 1 week after the free agent auction or the date specified by the league commissioner on the league calendar to designate the length of their newly acquired player’s contracts. If the owner fails to submit the contract lengths the players will be automatically given a 1 year deal.
e) Owners retain the rights to each player until the owner releases the player or the player’s contract expires. On March 1 of each year, players on the final year of their contract are dropped from the roster and become free agents.
f) On march 1st of each year players contracts reduce by 1 year.
g) Player salaries increase by 20% over the previous year. Therefore, there is a escalating of salaries over multiple years, so be watchful when extending expensive contracts over additional seasons. Using the below table as a guide, for every $1 in initial base salary, in year 5, that salary will be $2.07. Below is contract structure chart for players bidding or winning auctions.
Contract Length Each $1 in Salary, Inflated 20% Each Year
- Year 1 $100.00
- Year 2 $120.00
- Year 3 $144.00
- Year 4 $173.00
- Year 5 $207.00
h) Owners can extend any player’s contract after week 16 with the exception of players on the last year of their contract. Rookies are the only players who may be extended in their final contact season.
i) When extending a contract, the current salary at the time is increased by 20% and becomes the new salary for the current year. The team owner can specify a salary in the extension post greater than a 20% increase, but it must be a MINIMUM of 20% above current. This effectively creates a “double” hit in terms of salary inflation, which is the price paid for extending a contract without letting the player test free agency.
j) The minimum salary for extending any player contract is $10. If the player has a $5 contract and you wish to extend him his new contract will start at $10.
k) When extending a player’s contract the owner must provide the commissioner with the players name and the new contract length.
l) Players contracts may not be extended after week 5 of the regular season until after week 16.
m) It is the owners responsibility to extend his players contracts and ensure the commissioner gets the numbers correct.
n) When a rookie on the Dynasty Taxi Squad (DTS) is extended, he may no longer remain on the DTS. Extending their contract will automatically promote them to the active roster.