Post by Rams GM (Frank) on Dec 31, 2016 8:55:54 GMT -5
Considering a changing of the rule in regards to the contract buyout. The proposed change will better reflect accountability for the contract agreements made, however with a pending increase to the salary cap, a 3 year buyout would include a 105% buyout which would make the buyout extremely punitive to the point where there would be very little incentive to utilize such an option. The current league rule will lead to a small discount of the agreed upon contract on a 3 year contract buyout, but comes at an excessive penalty over the average of the league waiver penalty in the second year.
Proposal #1 Proposed Changes to the Contract Buyout:
An owner can choose to pay off all of the waiver penalty in one year if they choose to. This can only be done during the league 'contract options' period we designate every offseason.
Example 1: A 3 year, $1,000,000 contract at 30% cap penalty would carry a waiver hit of $300,000 for 3 years. However if the owner decides to use a contract buyout then they would receive a cap hit of $900,000 for 1 year and pay nothing for the following 2.
Example 2: A 2 year contract at 30% cap penalty would carry a waiver hit of $300,000 for 2 years. However if the owner decides to use a contract buyout then they would receive a cap hit of $600,000 for 1 year and pay nothing for the last year of the contract.
And an owner has the option to use TWO contract buyouts in any given offseason. (This is my little twist of the rule).
Proposal # 2 Here is a Second Proposed Option
Contract buyout options will exits as a flat rate based on how many years left on the contract during the contract options period during the offseason.
2 years left on contract 60%
3 years left on contract 75%
4 years left on contract 90%
Proposal # 3 Keep Current League Rule on Contract Buyout:
As an added option to the standard 25% cap hit for the duration of a contract for a player that is waived and not claimed, we have contract buyout. If an owner chooses to buy out a players contract, we then take the average salary per year remaining on his contract, and apply a 75% buyout rate for the current year, but that owner would no longer be responsible for future money for that player.
Example: Tony Romo (QB-DAL) 21.78/25.28/15.1/19/UFA
The average salary works out to 20.29M per year.
A 75% buyout would mean a 15.22M cap hit for the current year, but that owner would be off the hook for future seasons.
There will be only one contract buyout per season.
This buyout will only happen during the offseason, when other league duties are due such as franchise tags, contract extensions and contract restructures. Once the deadline for contract buyouts expires, no organization will be allowed to use that contract buyout until the following offseason. Thus, we will never have a contract buyout in the middle of the season, creating a free agency crisis in the midst of a playoff race.
Once a contract buyout has taken place, the team buying out the contract cannot bid on that player once he heads into free agency until the following offseason.
Since we have 3 proposals up for vote, a majority vote of 17 GM's has to be surpassed if any of these propositions are to pass. If no majority if reached, a second league wide vote with the top two proposals will take place.
Proposal #1 Proposed Changes to the Contract Buyout:
An owner can choose to pay off all of the waiver penalty in one year if they choose to. This can only be done during the league 'contract options' period we designate every offseason.
Example 1: A 3 year, $1,000,000 contract at 30% cap penalty would carry a waiver hit of $300,000 for 3 years. However if the owner decides to use a contract buyout then they would receive a cap hit of $900,000 for 1 year and pay nothing for the following 2.
Example 2: A 2 year contract at 30% cap penalty would carry a waiver hit of $300,000 for 2 years. However if the owner decides to use a contract buyout then they would receive a cap hit of $600,000 for 1 year and pay nothing for the last year of the contract.
And an owner has the option to use TWO contract buyouts in any given offseason. (This is my little twist of the rule).
Proposal # 2 Here is a Second Proposed Option
Contract buyout options will exits as a flat rate based on how many years left on the contract during the contract options period during the offseason.
2 years left on contract 60%
3 years left on contract 75%
4 years left on contract 90%
Proposal # 3 Keep Current League Rule on Contract Buyout:
As an added option to the standard 25% cap hit for the duration of a contract for a player that is waived and not claimed, we have contract buyout. If an owner chooses to buy out a players contract, we then take the average salary per year remaining on his contract, and apply a 75% buyout rate for the current year, but that owner would no longer be responsible for future money for that player.
Example: Tony Romo (QB-DAL) 21.78/25.28/15.1/19/UFA
The average salary works out to 20.29M per year.
A 75% buyout would mean a 15.22M cap hit for the current year, but that owner would be off the hook for future seasons.
There will be only one contract buyout per season.
This buyout will only happen during the offseason, when other league duties are due such as franchise tags, contract extensions and contract restructures. Once the deadline for contract buyouts expires, no organization will be allowed to use that contract buyout until the following offseason. Thus, we will never have a contract buyout in the middle of the season, creating a free agency crisis in the midst of a playoff race.
Once a contract buyout has taken place, the team buying out the contract cannot bid on that player once he heads into free agency until the following offseason.
Since we have 3 proposals up for vote, a majority vote of 17 GM's has to be surpassed if any of these propositions are to pass. If no majority if reached, a second league wide vote with the top two proposals will take place.