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Post by scottc on Nov 21, 2011 14:21:37 GMT -5
Hi Guys, I hate to be the "fly in the ointment" here but I just noticed something problematic about our contract extensions:
Let's say we have a player signed to a $10 per year contract and you choose to extend that player:
Scenario 1: You extend for 5 years all at once at $20 per year (20%*5= %100 of present AAV added to extension)
$20*5 years = $100MM salary committed
Scenario 2: You extend the contract by just 1 year each year for 5 years:
Year 1: $10*20%= $2 ($12 salary)
Year 2: $12*20%= $2.40 (rounds up to $14.5)
Year 3: $14.5*20%= $2.90 (rounds up to $17.5)
Year 4: $17.5*20%= $3.50 ($20.5 salary)
Year 5: $20.5*20%= $4.10 (rounds up to $25)
12+14.5+17.5+20.5+25= $89.5MM salary committed.
Our system currently rewards going year to year instead of making longer-term commitments when resigning. You would have to extend a player 7+ years to see any cost savings vs. just going year to year.
Should this be tweaked? It seems counter-intuitive to pay less to go year to year than to commit years to a player.
EDIT: A simple solution would be to have a minimum 2 year length on contract extensions. This would eliminate the option of going year to year and you would definitely save money extending once for 4 years vs. twice for 2 years each.
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Post by Commissioner (Athletics GM) on Nov 21, 2011 14:35:54 GMT -5
I thought it was 20% time's the current contract.
1.2*15 = $18 a year 1.2*12 = $14.4 = $14.5 a year
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Post by scottc on Nov 21, 2011 14:39:18 GMT -5
From the league rules:
Re-signing:
Add 20% extra from the current AAV of the contract for each year you'd like to extend the player
Example: You have Evan Longoria for $10 for the next 3 years but you'd like to extend him for 3 more beyond that. You'd sign him to an extension that kicks in at the end of his current deal for $16/3 more years. If you wanted to go 5 more years beyond the current deal you'd have to sign the extension at $20/5 years to kick in at the end of the current deal.
Check out my edit above, I figured out a really simple solution to the "year to year" problem I outlined...
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Post by Commissioner (Athletics GM) on Nov 21, 2011 14:41:37 GMT -5
That will lead to astronomical salaries after like 4 years though no?
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Post by rocky on Nov 21, 2011 14:43:29 GMT -5
What about no resigning at all and all players out of contract after one year are available for free agency
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Post by scottc on Nov 21, 2011 14:48:45 GMT -5
That will lead to astronomical salaries after like 4 years though no? Yes, and this is the point. Owners will have to make tough calls on re-signing players vs. letting them go to FA and re-bidding on them to re-set their contract value. Do you see my point about it being more favorable under the current set up to do 5 separate 1 year extensions vs. extending for 5 years up front? I think we should ban 1-year extensions so that there is some benefit to committing to more years up front.
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Post by scottc on Nov 21, 2011 14:50:01 GMT -5
What about no resigning at all and all players out of contract after one year are available for free agency I for one already made 2 of my draft picks planning to take advantage of the re-signing aspect of this league. I'm sure I'm not the only one.
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Post by rocky on Nov 21, 2011 14:51:22 GMT -5
Well then taking that into account I'm on board with the banning of one year extensions. It's really the only option
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Post by Commissioner (Athletics GM) on Nov 21, 2011 15:05:12 GMT -5
Could also do a reverse system.
1 Year Contract: Add 50% of previous year
1 Year/$10 = 1 Year/$15
2 Year Contract: Add 45% of previous year
1 Year/$10 = 2 Years/$14.50
3 Year Contract: Add 40% of previous year
1 Year/$10 = 3 Years/$14
4 Year Contract: Add 35% of previous year
1 Year/$10 = 4 Years/$13.50
5 Year Contract: Add 30% of previous year
1 year/$10 = 5 Years/$13
This basically gives players incentive to sign longer deals. It would only focus on the previous season so you aren't punished for a long term contract in the previous year.
So say, you wish to resign Stanton next year.
1 Year/$15 = 5 Years/$19.5
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Post by scottc on Nov 21, 2011 15:10:32 GMT -5
That would work too and have the proper inverse correlation of AAV to guaranteed years. I'm all for it.
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Post by Commissioner (Athletics GM) on Nov 21, 2011 15:14:06 GMT -5
So assuming Stanton plays out the 5 year contract I listed and the manager would like to resign him again:
Previous season was 19.5 = 5 Years/$25.50 a year
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Post by hylianhero on Nov 21, 2011 17:08:31 GMT -5
I like that idea Connor. I think that it's a good way to have incentive for people to sign long term contracts, but not so much that you have to sign a 5 year for it to make sense. I vote for the inverse system.
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