What is a Restricted Free Agent in the NHL?
A player who has completed his entry-level contract, but does not have enough NHL service to become an unrestricted free agent. This player qualifies as a restricted free agent when his contract expires.
What's an Offer Sheet, and what happens when a Restricted Free Agent signs it?
An offer sheet is a contract negotiated between an NHL team and a restricted free agent on another team. It includes all the terms of a standard player contract, including length, salary, bonuses, etc.
When a player signs an offer sheet with a new team, his current team is notified. That team has the right to "match" the offer sheet with an identical contract, and keep the player. Or it can decline and let the player join the new team under the terms of the offer sheet.
The original team has seven days to make its decision.
Can a team trade a Restricted Free Agent who has signed an Offer Sheet?
No. Once an offer sheet has been signed, the original team has only two options: match the offer or let the player go.
Can a team match an Offer Sheet and then trade the player?
No. If the original team chooses to “match” the offer sheet, the player cannot be traded for one year.
Is there compensation for an NHL team that loses a Restricted Free Agent on an Offer Sheet?
Yes. The team that declines the offer sheet and loses the player receives draft picks from the player’s new team.
Compensation for losing a restricted free agent is on a sliding scale, depending on how much the new contract is worth. The exact numbers change every year.
The numbers as of 2011:
- A team signing a restricted free agent to a contract worth more than $7,835,219 per season loses four first-round draft picks to the player's old team.
- For a contract with an annual value of at least $6,268,176, the acquiring team gives up two first-round picks, one second-round pick, and one third-round pick.
- There are another four levels of compensation, going down to a contract worth up to $1,034,249 per year, for which there is no compensation.
Can an NHL Restricted Free Agent sign an Offer Sheet if he is awaiting Salary Arbitration?
No. A player going to salary arbitration is effectively off the market. He can only continue negotiations with his current team, or go to arbitration.
What is a Qualifying Offer?
A contract offer extended to a restricted free agent by his current team. By making a qualifying offer, an NHL team maintains the player's status as a restricted free agent, even if the qualifying offer is rejected.
If the qualifying offer is not made by the current team, the player becomes an unrestricted free agent, free to sign with any NHL team.
- Players who earned less than $660,000 in the previous NHL season must be offered at least 110 percent of last season's salary in a qualifying offer.
- Players who earned up to $1 million must be offered 105 percent.
- Players who earned over $1 million must be offered 100 percent.
Why is December 1 a pivotal date for restricted free agents?
A restricted free agent who does not sign a new contract by December 1 becomes ineligible to play for the rest of the season. It's essentially a deadline for contract negotiations that drag into the new season.