Amendment - Write-off Rule

[Former Rockies GM (Peter)]

The rules pertaining to writing off contracts have been revised. The new rule is:


6. DROPPING A PLAYER TO FA

[3] If the player is signed to a contract by another franchise, continued responsibility for that player's salary will be reduced in part or full depending on the degree to which the new salary is less than the salary being written off. If the player’s contract with his new team is higher than his contract was with the old team, the previous owner will no longer be obligated to pay any further reparations for the player and thus no further penalty on that franchise's salary cap.

Example: Player A salary: $4M (2010), $5M (2011) can be written off as: (i) $2M (2010) and $2.5M (2011) or (ii) $4.5M (2010)

If the player signs a new contract of $3M (2010), $6M (2011) the team will be credited with either (i) $1.5M (2010) and $2.5M (2011) or (ii) $4M (2010)

[4] If for whatever reason you drop a minors player to free agency during the season, the penalty is for that GM to pay the player 1/2 the amount for the remainder of the season.

[5] Once you waive a player, you may NOT bid on him and offer him a new contract until a period of 2 weeks have passed.[/ul]

[Former Reds GM (Patrick)]

just curious as to what the change is?

[BK Dodgers GM (Man)]

There had been some confusion over how exactly the remaining obligation should be calculated, if the waived player was signed to a new contract.

The LO has decided to go w/ the simplest approach and amended the rule accordingly (in 6.3).

Please note I made a slight correction to the example Peter posted since there was an error there. I've also highlighted the changed section of the rule (ie. 6.3) in bold red to make it more obvious to see at a glance.

FYI, this amendment had actually been discussed on and off w/in the LO for a long while before and then revisited in early February, but we just never got around to finalizing on it until now. Hope this is not a problem for anyone.

[Former Rockies GM (Peter)]

That wasn't an error but a deliberate cange in contract with $6M assigned in 2011 to illustrate that credit for the new contract value in 2011 would only have been up to the $5M level as stipulated in the original contract.

[BK Dodgers GM (Man)]

Aaaaah... Got it. Guess I'll go and change it back for you.

[BK Dodgers GM (Man)]

For clarification, the reduction is on a year-to-year basis, not cumulative basis -- that's why the given example works out the way it does.

Also, we only allow a one-time reduction of the buyout obligations for each contract. You will *NOT* receive additional reductions if the player is re-signed yet again to another new contract.