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Compensation for RFA


Guest SgtMikal31

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Everyone keeps talking about the compensation that would be owed to Nashville if they elect not to match the offer sheet, and saying that it would be 4 first round draft picks. i don't think that is correct anymore. All of the research that I have done indicates that it would be 2 firsts, a second, and a third. The compensation levels changes each year as the average salary of all NHL players changes. When the lockout ended originally, it would have been four 1sts for anyone whose cap hit was above $5m. Check out this site: http://www.mynhltraderumors.com/2012/07/06/draft-pick-compensation-for-2012-nhl-restricted-free-agents/. It says that if the offer is between $6,728,781 and $8,410,976, then the compensation would be 2 1st round picks, 1 2nd and 3rd round pick. I don't know anything about what years, though.

Also...from NHL.com (http://www.nhl.com/ice/news.htm?id=636658#&navid=nhl-search):

OFFER COMPENSATION

$1,110,249 or below None

Over $1,110,249 to $1,682,194 Third-round choice

Over $1,682,194 to $3,364,391 Second-round choice

Over $3,364,391 to $5,046,585 First-round and third-round choice

Over $5,046,585 to $6,728,781 First-round, second-round and third-round choice

Over $6,728,781 to $8,410,976 Two first-round choices, one second- and one third-round choice

Over $8,410,976 Four first-round choices

The offer sheet to Weber was a cap hit around $7.8m, right?

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Here is the relevant clause from the CBA (Section 10.4):

"The number and quality of draft choices due to the Prior Club shall be based on the average annual value of the compensation contained in the Principal Terms (as defined in Section 10.3(e) hereof) of the New Club's Offer Sheet (determined by dividing such compensation by the lesser of the number of years of the Offer Sheet or five), based on the following scale..."

Since the terms of the offer sheet are greater than 5 years, the compensation is based on the 5 years, not the length of the contract. 110 divided by 5 is 22,hence the 4 1st round picks.

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Since the terms of the offer sheet are greater than 5 years, the compensation is based on the 5 years, not the length of the contract. 110 divided by 5 is 22,hence the 4 1st round picks.

Wow. Thanx for clarifying. That seems a bit screwy to me, but it is what it is.

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Here is the relevant clause from the CBA (Section 10.4):

"The number and quality of draft choices due to the Prior Club shall be based on the average annual value of the compensation contained in the Principal Terms (as defined in Section 10.3(e) hereof) of the New Club's Offer Sheet (determined by dividing such compensation by the lesser of the number of years of the Offer Sheet or five), based on the following scale..."

Since the terms of the offer sheet are greater than 5 years, the compensation is based on the 5 years, not the length of the contract. 110 divided by 5 is 22,hence the 4 1st round picks.

Nice research AJ.

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