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 RULE 18 Bad Contracts

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Join date : 2012-06-22

PostSubject: RULE 18 Bad Contracts   Thu Sep 13, 2012 1:47 am

18.1) If there is a trade involving "bad debt" (cap space) then IT MUST BE INCLUDED IN THE COMMENTS BOX of that trade or it will not be included in the trade.
EX: Team A trades Jerry Rice ($9 million/3 years) to Team B for Santana Moss ($4 million/3 years) and 3 million in bad debt. That bad debt being dealt must be included in the comments box and a clear concise breakdown of the exact "bad debt" contracts must be notated by the owners in the deal.
The Treasurer will keep the books on all teams bad contracts and any deal involving bad debt will need to be cleared through him first. It is highly recommended that each team keep a ledger of his contracts to know exactly what, if any, bad debt a team has and how long he has it for.
There will be several ways a team can trade bad debt:
1) Player/Bad Debt for Player
2) Picks/Bad Debt for Picks
3) Bad Debt for Picks straight up
Options 1 & 2 will be left up to the owners and all deals involving bad debt will be closely monitored by the commissioner and treasurer. These options will not have a set of rules and will not be regulated. As long as the deals makes sense and there are no signs of collusions, then they will be allowed.
Option 3 will have a clear structure of how a team will be able to trade their bad debt
Option 3 - Picks for Bad Debt
If a team wishes to deal his rookie picks for bad debt, that team will use the rookie wage scale as the multiplier to figure out how much cap space he can free up in a given trade. The following scale will be used when dealing picks for bad debt (straight up):
1st Round 2nd Round 3rd Round 4th Round 5th Round 6th Round
1: 2.85 mil 1.65 mil 800K 350K 300K
300K

2: 2.75 mil 1.60 mil 800K 350K 300K
300K

3: 2.65 mil 1.55 mil 800K 350K 300K
300K

4: 2.55 mil 1.50 mil 700K 300K 300K
300K

5: 2.45 mil 1.45 mil 700K 300K 300K
300K

6: 2.35 mil 1.40 mil 700K 300K 300K
300K

7: 2.25 mil 1.35 mil 600K 300K
300K
300K

8: 2.15 mil 1.30 mil 600K 300K
300K
300K

9: 2.10 mil 1.25 mil 600K 300K
300K
300K

10: 2.00 mil 1.20 mil 500K 300K
300K
300K

11: 1.95 mil 1.15 mil 500K 300K
300K
300K

12: 1.90 mil 1.10 mil 500K 300K
300K
300K

13: 1.85 mil 1.05 mil 400K 300K
300K
300K

14: 1.80 mil 1.00 mil 400K 300K
300K
300K

15: 1.75 mil 950K 400K 300K
300K
300K

16: 1.70 mil 900K 400K 300K
300K
300K

The mulitplier will be 1.35 in any deal involving a pick for debt (straight up).
EX: Team A has 1.05 rookie pick and wants to deal it for cap space (straight up). He would multiply the wage due to that rookie at 1.05 by 1.35 to determine the value of cap space he can trade for that pick. If Team B was not sending him anything in return and was only offering cap relief to Team A, then he would need to free up $3.31 million in order to do this deal.
Again, this is strictly for trades involving one team taking on cap relief only in exchange for draft picks
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