Anaheim Ducks – San Jose Sharks
Hockey. NHL
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Qualifying offer
The qualifying offer is the balancing measure under the bargaining agreement in the league. For example, the first qualifying offer appeared in MLB in the 2012 Collective Agreement and was reissued in 2017. The teams failed to accept the proposal to eliminate it in the following agreement. Thus, the system remains in effect.
The system supposes any club wishing to compensate the loss of a free agent on the current draft can propose the qualifying offer in the amount of salary of 125 MLB high-paid players to the impending free agent(-s). There are two conditions for that. A player can accept this proposal only once, plus it must spend the entire season on the active roster. In-season acquisitions don’t participate in this privilege. The player can negotiate with any team while considering whether to accept or reject the proposal.
The dependency of the qualifying offer and Draft pick
If the player signs the qualifying offer, the team becomes eligible for a compensatory pick in the next year’s Draft. If the team pays the Competitive Balance Tax and goes over its threshold, the position of the compensatory pick will be in the fourth round.
The revenue-shared deals are given in a draft according to the signed money. If the deal exceeds $50 million, the pick will be between the first round and Competitive Balance Round A. All other revenues happen after the Compensatory Balance Round B.
The sanctions for signing the players who rejected the qualifying offer
The owners often pressure the players to sign the contract even if they reject or repeat the offer. It violates the rules, and the initiator loses more than gains. The cost is several picks aborted, exempting the first one.
If the team pays CBT, it loses the second and fifth-round regular picks, plus a $1 million fine from the international bonus pool. Multiple incidents during the same period caused the forfeiture of the third and sixth-highest picks. So, the possible price is five picks less than expected.
The revenue deals lose the third-highest pick. On two occasions, such a team loses the fourth pick too. All other teams reduce the bonus pool for $500,000 and lose the second pick. Two players add the third pick to the ban contribution.