Had this in my head for awhile now and don't know why I bring it up now, but thought it was worth discussing.
Situation: Draft a rookie and sign him to a 2 year and after their rookie season you could reneg him for + 350 up to 5 years.
Issue: Does the rookie get the rookie bonuses for ONLY the original 2 years he was issued or do rookie bonuses apply for the ALL the reneg years up to a max of 5 years?
Quote:
In addition to these base salaries, rookies will earn bonuses based on their performance each year of their original rookie contract. These bonuses will be based on their year end ranking among players of the same position. Players drafted after round 1 will receive a lower bonus for equal performance. That is, second round players receive a bonus 75% of that of a 1st round pick, 3rd round receive 25%, and 4th round receive 25%. Performance bonuses are earned on top of the standard 10% raise, not in place of it.
The minimum raise is 10% of the previous years salary. Any incentive bonus earned is above and beyond the standard minimum raise.
Further, each rookie will have a maximum salary that his contract can hit with incentive bonuses. The maximum salaries will vary on position and round drafted. When calculating for the maximum salary, the player will first be assessed his 10% annual contract increase, and then any applicable signing bonus will be applied up to the maximum salary payable according to the players position and the draft round and pick the player was drafted in. Once an incentive clause bumps the contract at or above the maximum salary, incentive bonuses will no longer apply, although the 10% annual contract will still apply on any remaining years of the contract.
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- So the rookie rules state the bonus is applied to the "original rookie contract" until they meet MAX salary.
Quote:
7I. Renegotiation
Players with more than one year remaining on their contract can have their contracts renegotiated by the team holding their rights. When a contract is renegotiated, the current years salary gets a 10% or 300cb raise, whichever is greater, and the contract can be extended up to the standard maximum of five years.
A player with less than one year remaining on his contract can only have his contract renegotiated if he is traded to another team. Once traded, the contract can be renegotiated with a raise of 5% or 150cb to the current year salary, whichever is greater. The contract can be extended up to the standard maximum of five years.
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- The issue I believe is if we determine if "renegotiation" is an extension of the ORIGINAL rookie contract or a brand new deal.
So what do you guys think? I just want to make sure everyone is on the same page as allowing reneg to cancel bonus is a major loophole around rookie contracts.
MY OPINION: I think reneged years should count towards the original rookie contract and the bonus would be applied for up to 5 years or until the player reaches MAX salary.
It is against the spirit of the rookie bonus, IMO as the rookie bonus has a MAX salary that is still under market value. Also, the rookie bonus scale was formulated in Frenzy where there are no renegs.