Restricted Free Agents
Players who are no longer considered "entry-level" but do not qualify as unrestricted free agents become restricted free agents when their contracts expire.
- Qualifying Offers
The current team must extend a "qualifying offer" to a restricted free agent to retain negotiating rights to that player.
Players who earned less than $660,000 in the previous season must be offered 110 percent of last season's salary. Players making up to $1 million must be offered 105 percent. Players making over $1 million must be offered 100 percent.
If the qualifying offer is not made, the player becomes an unrestricted free agent.
If the player rejects a qualifying offer, he remains a restricted free agent.
Offer Sheets and Restricted Free Agents
- The Offer Sheet is a Contract
An offer sheet is a contract negotiated between an NHL team and a restricted free agent on another team.
The offer sheet includes all the terms of a standard player contract, including length, salary, bonuses, etc.
A player who has signed a qualifying offer or is going to salary arbitration with his original team cannot sign an offer sheet.
- Accept or Decline
When an offer sheet is signed, the player’s current (original) team is notified. That team can keep the player under the terms of the offer sheet, or decline and let the player join the new team under those terms.
The original team has seven days to make its decision.
- No Turning Back
Once an offer sheet has been signed by a player, the original team cannot negotiate a new contract under different terms or trade the player’s rights. It’s only options are to accept or decline the offer sheet.
- The No-Trade Clause
If the original team chooses to accept, or “match” the offer sheet, the player cannot be traded for one year.
If the original team declines the offer sheet and loses the player, it receives draft picks from the player’s new team as compensation.
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 most a team can lose for signing an RFA is four first-round draft picks.
For 2011, a team signing a restricted free agent to a contract worth more than $7,835,219 per season loses four first-round picks to the player's old team.
For a contract worth $6,268,176 or more per year, the acquiring team gives up two first-round picks, one second rounder, and one third.
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.
A team or player can file for salary arbitration as a mechanism to settle contract disputes.
A team can take a player to arbitration once in his career, and cannot ask for a salary reduction greater than 15 percent. Players can ask for salary arbitration as often as they want.
See also: salary arbitration explained
December 1 Deadline
Restricted free agents must sign NHL contracts by December 1, or they are not eligible to play in the NHL for the rest of the season.
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