Multiyear Contracts

Owners have the option to lock players onto their teams for additional years at current salary rates.  This is highly beneficial for younger players whose salaries will most likely increase after a great year early in their careers or for one of those journeymen veterans who have a career year.  There are, however, a few risks involved.

Players may be signed for the following year by August 1 (actually the final transaction deadline on or before August 1).  The team must have the funds available for the entire salary, as it will be deducted immediately.  The salary does not get deducted again in the following year.  However, the player's contract will be counted toward the salary cap for remaining years (at the contracted salary, not the published salary for that season).

Players may be signed for another year at their current salary rate.  They may be signed for a third or more years given the following formula: each successive year is at a 33% increase or at a minimum indicated below, whichever is higher.

• A player may be signed for 2005 and beyond. The salary for each year beyond 2005 will be calculated with a 33% raise, given the following minimums:

* old values prior to 2004.  Also new in 2004 is the 33% increase, replacing the original rule of 25%.

Players on multiyear contracts that are traded keep their contracts and the receiving team enjoys the benefit (teams should take that into consideration when trading).  The receiving team does not have to pay for the remaining years on the contract. The team trading the player will not receive any rebate of future salary, but will still receive a rebate for the prorated portion of the current season's salary, provided that this is the first year of the contract.  If a player on a multiyear contract is released, there is no salary rebate.  These are, in effect, guaranteed contracts.  However, at that point the contract is void, and any team wishing to claim the player will do so using normal procedures and the player's published salary for the season.

Any other stipulation based upon salary, such as whether or not the player may be put on the minor league roster, are dependent upon his published salary for that particular season.

One final provision is that no player on a multiyear contract may be left unprotected in any expansion, redistribution, or other off-season draft.  This applies even if his current team was not the one to originally sign him to the multiyear deal.

Important Note

Should a season be interrupted or cancelled due to players' strike or a lockout by the owners or other work stoppage, there will be no adjustment to contracts.