Contract Extensions

[kylerap]

Salary Cap- $150 million
For a 40 man roster, it has average salary of 3.75m.

Contract extensions:
Players can only be extended in the final year of their contract.
A player can be extended by finding their extension value using the ranking system in Hitter Rank and Pitcher Rank sections of the spreadsheet, which correspond to their Fantrax rankings.
For can go to the league page in fantrax, click on players, click where it says All Available Players and select ALL Players. Then select either hitting or pitching based on the position of your player and find their rank in the order listed. For other years, select that tab and select on the appropriate season.


Years & Values
Max extension is a 5 year deal. There are limits based on the $ value of the contract.


Contract Limits (after initial startup values)
Total Salary - Maximum Years
$3.2m or less, 2 years
$3.3m to $19.9m, 3 years
$20m to $49.9m, 4 years
$50m+, 5 years (the overall limit)


What does this mean?
A contract of 1.0m per year can only be a 2 year deal. In order to give someone a 4 year deal or extension, it must average at least $5m per year.
A 5 year deal, the total value has to equal $50m, or $10m per year



To find their value, it's dependent on the time you're extending them. See below:
For 2023 Season:
PRE & EARLY SEASON - PRE-APR 30 (2023): 2021, and 2022 rankings are used
REGULAR SEASON, AFTER MAY 1ST (2023): 2021, 2022, 2023 rankings are used
OFFSEASON (2023-24): 2022 and 2023 rankings are used


Prospect extensions:
Any player who is currently under a prospect contract may be signed to a regular contract extension, but they may also be signed to a prospect extension. Such an extension must be a 3-year deal where the annual salary is X% of their market value (see extension thread). The annual salary must be no less than $4m in any year. To receive the prospect extension discount, the player must be re-signed before the trade deadline of the final year of their current deal. If John Smith is P-2018 then he must be resigned before the 2018 trade deadline to get the discount.
If giving a prospect extension, it begins the next season, not at the end of the prospect contract.


Example-
Joe Schmoe was great as a rookie, entering his rookie season �as p-2025 (500k contract through 2025). If his extension value in 2025 is, say, $20m per year, you can extend him then at 75% of that being its the last year of his contract. To do it early, in this example the 2023 season, you could do it at 50% with a larger discount, but you're wiping out the cost controlled years you get with a prospect eligible player. This is a risk you take of how good a player is/may become.


For the 2023 season, the following percentages would be used per prospect status.


2023- 75%
2024 - 60%
2025 - 50%
n/a - 40%


Extension values:
Because the major leagues are increasingly versatile, our extensions will have hitter and pitcher overall rankings. They will not be by position.
An overall hitter rankings, and overall pitcher rankings will be used to find the extension value of your player.


Hitters:
Will be ranked 1-160 based on contract values. Max value for #1 will be $28 million.
full rankings to come...
Minimum extension value is $2m.



Pitchers:
Will be ranked 1-135 based on contract values. Max value for #1 will be $22 million.
full rankings to come...
Minimum extension value is $1.5m