Chapter 13: Contracts

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Chapter 13: Contracts

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CHAPTER 13: CONTRACTS

13.1. General Information
In order to play for a team, a player must be signed to a contract. Contracts cannot exceed the maximum annual salary (See sec 13.2) or be below the minimum annual salary (See sec 13.3). Contracts cannot be longer than the maximum limit allowed by their status (see sec 13.4). Contracts may include stipulations such as a no-trade clause (See sec 13.5). Signing bonuses can also be offered on certain contracts (see sec 13.6). Contracts must be negotiated with the appropriate OTHLPA representative (see sec 16.1). Players who are on the farm roster are paid 10% of their full contract for the time they are in the minors.

13.2. Maximum Salaries
An OTHL contract may not exceed the maximum allowed by the CBA. That figure is determined as 20% of the total salary cap for a team. The OTHL mirrors the NHL on this rule. When the NHL releases their maximum salary figures, the OTHL will reflect this change.


13.3. Minimum Salaries
An OTHL contract must meet the minimum allowed by the CBA. The OTHL mirrors the NHL on this rule. When the NHL releases their minimum salary figures the OTHL will reflect this change.

13.4. Contract Lengths
Contract lengths are dependent on the status of the player. The following table illustrates the maximum contract length, based on the type of contract being signed:

Type Length
ROOKIE 3 Years (Auto)
RFA Max 5 Years
UFA Max 5 Years
UFA (Team Owns Rights) Max 6 Years
UDFA Max 3 Years (Auto)


13.5. No Trade Clause
UFA players who have signed a new contract longer then 1-year, will be given a 1-year no-trade clause. The 1-year no-trade clause cannot be waived. The no-trade clause will be removed at the start of the offseason period the following off-season.

UFA players who sign 1-year contracts will be given a “limited” no-trade clause which will be in effect until January 1st the following season.

RFA's and Rookie contracts do not include no trade clauses.

13.6. Signing Bonus
A UFA contract may include a signing bonus, however that bonus may not exceed 25% of the total salary of the contract. This total doesn’t include the bonus. For example: 4 year contract of $2,500,000 per year = $10,000,000, max signing bonus would be $2,500,000.

Coaches, RFA's and Rookie contracts cannot include signing bonuses.

13.7. Salary Arbitration – Contract Disputes
A GM or player may request salary arbitration should contract negotiations enter into an impasse. Each GM may only select one player for arbitration per year, unless the player requests it. The BOD will act as the board. Each side will present their proposed salary, and reasoning behind it. The BOD will then pick which side they believe is the most reasonable, and award that salary for 1 year as the agreed upon contract. The team can walk away from the award and chose to let the player become a UFA. Once agreed upon, the judgment is final. RFA players are the only ones who can elect for arbitration.

13.8. One-Way Contracts
Any player (RFA or UFA) who has a contract with a $4,000,000 or more AAV, will be considered a one-way contract in the OTHL. One way contracts can still be sent to the minor leagues, but a portion of their cap hit will remain on the pro team. This portion mirrors the NHL. You can read more about it here: https://www.capfriendly.com/faq#buried
The players salary cap hit, minus the sum of the minimum NHL salary for the respective season and $375,000, still counts towards the team’s salary cap total. The cap hit relief is therefore equal to the minimum salary of the respective season + $375,000:
  • 2021-22: $750,000 + $375,000 = $1,125,000
  • 2022-23: $750,000 + $375,000 = $1,125,000
  • 2023-24: $775,000 + $375,000 = $1,150,000
  • 2024-25: $775,000 + $375,000 = $1,150,000
  • 2025-26: $775,000 + $375,000 = $1,150,000
Examples:
  • Player has a $4,000,000 cap hit and is sent to the minors. He will still count for $2,875,000 towards the team's pro salary cap ($4,000,000 - $1,125,000)
  • Player has a $6,000,000 cap hit and is sent to the minors. He will still count for $4,875,000 towards the team's pro salary cap ($6,000,000 - $1,125,000)
  • Player has a $10,000,000 cap hit and is sent to the minors. He will still count for $8,875,000 towards the team's pro salary cap ($10,000,000 - $1,125,000)
  • Player has a $3,500,000 cap hit and is sent to the minors. He will not be counted against the team's pro salary cap because he will not qualify as a player with a one-way contract.

13.9 Buying out a player
A team may terminate a player's contract at anytime, however the team is obligated to pay 150% of the player's remaining contract as one lump sum at the time of termination. This process is referred to as "buying-out" the remaining life of the contract. At the point of termination, the player becomes an unrestricted free agent (UFA) regardless of age. If the player is currently retired from the NHL or playing overseas at the time of the buyout, then the player will be removed from the sim. The formula for determining the buyout amount is as follows: (Years * Salary Per Year = Total Contract Value * 1.50 = Buyout Amount)

Examples:
  • Player has 1 year remaining on a contract that pays him $1,000,000 per. Buyout amount is $1,500,000. [1 Years * $1,000,000 * 1.5]
  • Player has 2 years remaining on a contract that pays him $4,000,000 per. Buyout amount is $12,000,000. [2 Years * $4,000,000 * 1.5]
  • Player has 5 years remaining on a contract that pays him $9,000,000 per. Buyout amount is $67,500,000. [5 Years * $9,000,000 * 1.5]

13.9.1 Re-signing a bought-out player
Teams are not allowed to release a player and then re-sign him to a new contract. If a team buys out a player, that player is not allowed to re-sign with that team for 1 season. The other teams in the league are allowed to try and sign the player as a unrestricted free agent.
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