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Posted by / 05-Mar-2016 11:20

An offer sheet is a contract negotiated between an NHL team and a restricted free agent on another team.

It includes all the terms of a standard player contract, including length, salary, bonuses, etc.

Is there compensation for an NHL team that loses a Restricted Free Agent on an Offer Sheet? The team that declines the offer sheet and loses the player receives draft picks from the player’s new team.

Compensation for losing a restricted free agent is on a sliding scale, depending on how much the new contract is worth. The numbers as of 2011:- A team signing a restricted free agent to a contract worth more than ,835,219 per season loses four first-round draft picks to the player's old team.- For a contract with an annual value of at least ,268,176, the acquiring team gives up two first-round picks, one second-round pick, and one third-round pick.- There are another four levels of compensation, going down to a contract worth up to ,034,249 per year, for which there is no compensation.

This player qualifies as a restricted free agent when his contract expires.

What's an Offer Sheet, and what happens when a Restricted Free Agent signs it?

When a player signs an offer sheet with a new team, his current team is notified.

That team has the right to "match" the offer sheet with an identical contract, and keep the player.

A player who has completed his entry-level contract, but does not have enough NHL service to become an unrestricted free agent.

Can an NHL Restricted Free Agent sign an Offer Sheet if he is awaiting Salary Arbitration? A player going to salary arbitration is effectively off the market.

Can a team trade a Restricted Free Agent who has signed an Offer Sheet? Once an offer sheet has been signed, the original team has only two options: match the offer or let the player go.

Can a team match an Offer Sheet and then trade the player? If the original team chooses to “match” the offer sheet, the player cannot be traded for one year.

Or it can decline and let the player join the new team under the terms of the offer sheet.

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The original team has seven days to make its decision.

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