Post by bossman on Sept 15, 2018 2:01:50 GMT
Contract Extensions Idea
I've been talking to a few coaches about this idea and I think it has some merit.
When people decide to extend players coming off-contract, every coach chooses to take the one to three year extension idea. You'd be crackers to extend the vast majority of players by 5 years as it costs 200k to do so. Every coach would choose the less riskier AND cheaper option of two three year contracts (6 years total) which would add $170 000 to the players value rather than the 5 year option for 200k. No coach is ever tempted to take the four or five year option on players.
I think the four and five year extension costs are too high. I would like to introduce an element of risk regarding both short and long term signings. I think short term signing extensions should be more expensive (risk being a salary cap squeeze for taking short contracts/reward being able to let the player go early if his form turns bad) and long term signings cheaper (risk being having a dud in your squad long term/reward being keeping a player you really want long term and getting a slight discount).
At the moment, there is no risk for coaches giving short term contract extensions. Coaches will keep players they really want to keep no matter what contract system we use. This way, the temptation to retain a guy on a long term deal will be higher but there is also a higher risk regarding awarding a 5 year contract than two 3 year ones.
Here is the proposed scheme.
1 year = $50 000
2 years = $75 000
3 years = $100 000
4 years = $120 000
5 years = $150 000
With the present system, here are the comparisons
Joe Bloggs = 1 five year extension = $200 000
= 2 three year contract extensions = $170 000 (cheaper by $30 000, one season longer, less riskier extension.)
= 1 three year and 1 two year extension = $160 000 (cheaper by $40 000 for the same duration with less risk than a five year extension.)
With the proposed system, there is a lot more temptation to sign someone long term and some reward if the extension works out. Some risk if it doesn't as well.
Joe Bloggs = 1 five year extension = $150 000
= 2 three year contract extensions = $200 000 ($50 000 extra)
= 1 three year and 1 two year extension = $175 000 ($25 000 extra)
I'd like to know what you guys think. If there is an appetite for it, I will put it to a vote. If the appetite is not there, I won't put it forward.
If it goes ahead, I would not implement it in the next off-season but the one after that. Coaches would need one contract period to adjust their squads for the change.
I've been talking to a few coaches about this idea and I think it has some merit.
When people decide to extend players coming off-contract, every coach chooses to take the one to three year extension idea. You'd be crackers to extend the vast majority of players by 5 years as it costs 200k to do so. Every coach would choose the less riskier AND cheaper option of two three year contracts (6 years total) which would add $170 000 to the players value rather than the 5 year option for 200k. No coach is ever tempted to take the four or five year option on players.
I think the four and five year extension costs are too high. I would like to introduce an element of risk regarding both short and long term signings. I think short term signing extensions should be more expensive (risk being a salary cap squeeze for taking short contracts/reward being able to let the player go early if his form turns bad) and long term signings cheaper (risk being having a dud in your squad long term/reward being keeping a player you really want long term and getting a slight discount).
At the moment, there is no risk for coaches giving short term contract extensions. Coaches will keep players they really want to keep no matter what contract system we use. This way, the temptation to retain a guy on a long term deal will be higher but there is also a higher risk regarding awarding a 5 year contract than two 3 year ones.
Here is the proposed scheme.
1 year = $50 000
2 years = $75 000
3 years = $100 000
4 years = $120 000
5 years = $150 000
With the present system, here are the comparisons
Joe Bloggs = 1 five year extension = $200 000
= 2 three year contract extensions = $170 000 (cheaper by $30 000, one season longer, less riskier extension.)
= 1 three year and 1 two year extension = $160 000 (cheaper by $40 000 for the same duration with less risk than a five year extension.)
With the proposed system, there is a lot more temptation to sign someone long term and some reward if the extension works out. Some risk if it doesn't as well.
Joe Bloggs = 1 five year extension = $150 000
= 2 three year contract extensions = $200 000 ($50 000 extra)
= 1 three year and 1 two year extension = $175 000 ($25 000 extra)
I'd like to know what you guys think. If there is an appetite for it, I will put it to a vote. If the appetite is not there, I won't put it forward.
If it goes ahead, I would not implement it in the next off-season but the one after that. Coaches would need one contract period to adjust their squads for the change.
