Commissioner
2005-12-29, 13:17
Salary Increases
When a contract extension is offered, EFS will increase the salary of the player. The increase is based on the lack of player agent representation, which is the NFL’s method of bargaining for fair salaries. If you want to extend a contract the highest value calculated using the following two methods will be put into effect reflecting the player’s new salary for the life of the contract.
After January 1st of next year (2006), the contract extension formula will change. The new formula will be a two-part formula and will be exactly the same as the Veteran Draft Formula.
If a player is extended, the following formula will be applied:
Example: Player A is playing under a contract paying him $.900mm a season. In 2005, he averaged 14.00 pts/gm and 10 pts/gm in 2004. In the event his contract is extended, his salary for the new contract would be calculated as follows:
[(14.00 * .65) + (10.00 * .35)] * .255M = $3.187 mm per year. – 10% hometown discount, bringing his new salary for 2006 to $2.868
If you extend a rookie after only one season, the formula would use 100% of the current year's APPG.
As you can see, the player receives a substantial raise based on his performance, putting his value at real-market levels in-lieu of the real-world negotiations or hold-out which would undoubtedly take place.
Part 2-------------------------------------------------
A high priced veteran such as Shaun Alexander currently at $4.3 million/season injures his leg in week 3 and misses most of the season with a torn ligament. His APPG for the current season falls from 18 to 2. Team B extends his contract with 3 years remaining on his deal. Using the above formula, his salary would drop to $1.938. SALARY REDUCTIONS ARE NEVER ALLOWED!!!!!!!!
Under the aforementioned circumstances, the contract extension formula in-use currently will be applied.
The greater of the two values generated by each method will be applied.
When a contract extension is offered, EFS will increase the salary of the player. The increase is based on the lack of player agent representation, which is the NFL’s method of bargaining for fair salaries. If you want to extend a contract the highest value calculated using the following two methods will be put into effect reflecting the player’s new salary for the life of the contract.
After January 1st of next year (2006), the contract extension formula will change. The new formula will be a two-part formula and will be exactly the same as the Veteran Draft Formula.
If a player is extended, the following formula will be applied:
Example: Player A is playing under a contract paying him $.900mm a season. In 2005, he averaged 14.00 pts/gm and 10 pts/gm in 2004. In the event his contract is extended, his salary for the new contract would be calculated as follows:
[(14.00 * .65) + (10.00 * .35)] * .255M = $3.187 mm per year. – 10% hometown discount, bringing his new salary for 2006 to $2.868
If you extend a rookie after only one season, the formula would use 100% of the current year's APPG.
As you can see, the player receives a substantial raise based on his performance, putting his value at real-market levels in-lieu of the real-world negotiations or hold-out which would undoubtedly take place.
Part 2-------------------------------------------------
A high priced veteran such as Shaun Alexander currently at $4.3 million/season injures his leg in week 3 and misses most of the season with a torn ligament. His APPG for the current season falls from 18 to 2. Team B extends his contract with 3 years remaining on his deal. Using the above formula, his salary would drop to $1.938. SALARY REDUCTIONS ARE NEVER ALLOWED!!!!!!!!
Under the aforementioned circumstances, the contract extension formula in-use currently will be applied.
The greater of the two values generated by each method will be applied.