Arbitration Policies

[Virtual Jarmo]

Per the new financial policy, any players between 28 and 31 years and 364 days old and ALL goaltenders are subject to the arbitration process. Here is how this will work:

Teams will post that they wish to send players to arbitration in the Contract Offers forum. Please note this for goaltenders as well. Even though arbitration is the only option, some teams may not wish to even go to arbitration with some players.

I have already spoken to the four GMs who will serve on the arbitration board. Depending on who you are, I will give the case to whoever would appear to have the least to gain from your hearings. There are two Western Conference and two Eastern Conference arbitrators. I will serve as the chairman of the arbitration board, so I will have final say after discussing with whatever arbitrator is assigned to that case.

We will set arbitration hearing deadlines once we determine who is in and who is out of the playoffs.

Here is how the process will work. Teams will be PMed with the date (range) for their hearing. They will have ample time, probably 2-3 days, to find SIMILAR players in the file and suggest a salary number. GMs are also responsible for the contract length (no more than 4 years). I would suggest that you find similar players who are paid less. The arbitrator will then compare those players' attributes and production with your player. Looking at similar players and the production, as well as other intangibles (CON and LE namely, as well as importance to the team he is playing on), the arbitrator will then decide on a figure.

After both figures are submitted to me, I will determine the final salary for the player.

For example: Player X is 29 years old and made 1.5M on his previous contract. Player Y makes 1.8M and had similar production. Meanwhile, Player Z makes 2.5M and had slightly higher production, but has a lower CON and is on a better team. Both the GM and the arbitrator will look at these comparable players, as well as others in the league, and determine what they feel is fair market value for that player.

My final salary will fall in between those numbers, whether it be exactly the GM's suggestion, exactly the arbitrator's suggestion, or somewhere in between. The player cannot make less than 75% of his previous year's salary (the NHL is 85%). So, if the player made 4M in the year before, he cannot make less than 3M. Please keep this in mind when submitting your number.

The GM whose player is in arbitration will have the option to accept or decline that ruling. If the ruling is declined, that player will become an unrestricted free agent and subject to the bidding process.

The PMs will be sent to me and I will forward them to the proper arbitrator. Everything will be done via private message or off-site messaging client.

For GMs and arbitrators, comparable players CANNOT include free agent signings in their comparables. So, for example, if I were to send Mike Fisher to arbitration, Bobby Ryan (signed on free agency) could not be used as a comparable.

Please post any questions here. Or we can discuss it in tonight's chat.