Salary increase %

[kcgregg]

I've got a question, is the salary increase % greater when you increase the years of a contract or is it higher at the end of the year when the salaries are increased for the next year? or are they the same increase % for both?


Thanks,

kcgregg

[tec]

the salary increase at the end of the year is determined by the performance of that player during the season relative to his peers (see table in EFS Rules).

Salary increase a player receives when you extend his contract during a year is dependent upon the number of years remaining on his contract and the number of years you extend him (see table in EFS Rules). Generally the higher the number of years on his present contract plus the longer you extend him, the lower the percentage increase.

Obviously there are tradeoffs to extending a player during the season:

a. after extending a player during the season, his performance based percentage increase at the end of the year is based upon his now elevated salary.
b. by waiting to extend him until Jan-Feb next year, his contract years have been decreased by 1 so his percentage increase will then be higher.
c. remaining salary contracts- if you dont use them this year you lose them, they dont roll over.

Example:

lets say you have QB Peyton Manning at $5.00 Million salary and a 2 yr contract. You want to extend him 2 years, that requires a 20% bonus in order to do so. AFter this extension he would now have a $6 Million salary and a 4 yr contract. After the season ends his new salary will be based upon where his performance lies with respect to his peers-likely in top 5- so his salary increase will be substantial; for arguements sake lets say its 10%. His new salary would then be $6.6 Million.

Your other option is to wait until 2010 to extend him. Since that is the new year his contract years will be decreased by 1, from 2 to 1. To extend him now with an existing 1 year contract will mean a 25% increase no matter how many years you extend him. So his new salary would first have the 10% increase we used above, making it $5.5 Million. Adding on 25% of that makes his final 2010 salary= $6.875 million.

basically you have to make the decision to extend a player by the deadline date, which is before the end of the season.

bottom line is this....lots of things to consider!!