The first of three trials on the long-awaited return of UFA (Uzbekistan) stock market prices has failed. The reason for this is that a group of traders from New York City misjudged the market by paying too high a premium on their nationalized stock. The corrected prices were less than half of what they had paid for the shares. This shows the market can be gamed if a few people are careless about paying too high a premium for a stock.
The market has indeed changed. UFA is now available to all players on international free agent contracts. The healthy financial results, lower debt service and strong cash position led the outlook to change, the brokerage firm said. The long-term view of the new UFA structure, the region’s regional capital of the Volga River area of Bashkorton`s old souk no longer of benefit to the clubs, it is said. Instead, the new capital, with its new skyline, spectacular dancers in the 60s with brand new 3D animated projection that takes into account not only the ‘UFA’ building`s interior space – with state-of-the-art windows – but the long-term view of the region for now, is no longer in favor of the clubs. The clubs have now defaulted on their contracts with the regional government and there is no turning back now.
Now the focus turns to the future. What do players become in the new UFA system? First, they can sign one player and become an unlimited salary earner. The player can sign a second contract with the team and increase his salary and benefits through decades of limited participation. A third contract extension is possible, which means four years at maximum, or ten years at the most, provided the player reaches the age of forty before his contract expires.
The system is open ended though, so another player, a senior citizen in his prime, is added to the roster and plays all ten seasons. So a forty-year-old senior player, who plays all eight seasons at the professional level becomes an unrestricted free agent. Another forty-year-old player, who starts all four seasons at the amateur level, is now a two-time UFA and may well get more money than the teams are willing to give him now that he is at the age of forty. If a player has reached the age of fifty before his contract is terminated, he has reached an ‘end of life’ period for that contract, meaning he will not be able to sign an extension.
Contracts are terminated after the fifth season, at which point there is no longer any way to sign an extended UFA contract. That term, technically called the “bye-year,” enables free agents to sign deals with other clubs for the entire season. So a player, who is eligible for an offer sheet, may choose to enter the restricted market and negotiate a new deal with a potential new team. Or he may choose to enter the unrestricted free agency pool and compete against other players for the same rights to sign contracts.
Re-signing a UFA that is already signed is a complicated process. Teams want their players to re-sign because it makes much more sense financially to do so. Teams are penalized for losing a UFA, and they pay him a reduced salary, prorated for the remaining time on his contract. That’s why, if you’re worried about a pending contract termination, you should speak to your agent. Unless you plan to play next season, however, you probably don’t want to re-sign a guy that may not even be in your future, even if the offer sheet is very attractive.
In order to ensure that you receive the maximum contract offer available, you must submit a qualifying offer. Some people believe that if you offer a player less than four years of service, he has no chance of getting a new contract. However, this is simply not true. Most successful agents will tell you that most qualified free agents will not sign offers below four years unless they receive an eight or nine year deal. If you have a player that fits this description (most agents recommend that you get a four-year deal), you can most often lock a player into a one-year contract after he receives his qualifying offer.
While a sign-and-trade may not seem like the best option, it can actually save you a bundle when you’re trying to balance your budget. Signing an offer sheet is only one part of the trade. You also need to give a player notice that he is a UFA. While you don’t need to do this when a player is injured or has a bad year, you still should do it once a player has hit the waiver wire. This ensures that you have the right to match any offer sheet that a team sends your way. As long as you know what your alternatives are, signing a UFA contract and having a quality player on your team should be easy.