Post#1986 » by MettaWorldPanda » Sun Jul 4, 2021 12:37 am
Restricted Free Agency
A restricted free agent (RFA) can sign an offer sheet with any team, but the player’s original team can retain him by matching the terms of that offer. The original team is said to have the “right of first refusal.”
Restricted free agency exists in the following situations:
Following the fourth year of rookie “scale” contracts for former first-round Draft picks.
For all veteran free agents who have been in the NBA for three seasons or less. The exception to this rule is a first-round Draft pick following his second or third season if his team doesn’t exercise its option to extend his rookie-scale contract for the following season. These players then become unrestricted free agents.
A player coming off a two-way contract was on an NBA active or inactive roster for at least 15 days in the season beforehand.
There are five basic options for a restricted free agent:
Accept his team’s prior qualifying offer, play out the season and become a free agent the next summer.
Accept his team’s maximum qualifying offer (where applicable) and play under that long-term deal.
Negotiate a new contract with his original team that is independent of the qualifying/max qualifying offer.
Sign an offer sheet with another team through March 1, which his original team has an opportunity to match.
Negotiate a sign-and-trade if he hasn’t signed an offer sheet with another team.
If there is no qualifying offer, contract or offer sheet signed for one year, the original team can submit a new qualifying offer and the player will be a restricted free agent the next summer.
Offer sheets
When a restricted free agent wants to sign with another team, he and the new team sign an offer sheet. The terms of that deal — which must be for at least two seasons — are given to the player’s original team, which has two days to match. If the team matches, then the player is under contract with his original team, but at the principal terms of the offer sheet. If the team passes on matching within two days, the player is under contract with the new team.
If the player for some reason refuses to report for a physical with the original team within two days of the match, the first refusal exercise notice is in play until the player reports. The original team also can withdraw its first refusal exercise notice if the player doesn’t report for a physical. At that point, the notice and the offer sheet are invalidated and the player becomes a restricted free agent again. He cannot sign with or be acquired by the offer sheet team for one year.
The team making the offer must have enough salary cap room for the offer sheet and must maintain that room until the offer sheet becomes official or the original team exercises the right of first refusal. The original team cannot match an offer greater than its salary cap room. That original team must have room for both the regular salary and any unlikely bonuses the offer sheet includes
