How to Negotiate an Offer Sheet

A restricted free agent in professional sports has limitations on where they will be playing the following season. The player can go out into the open market and receive contract offers from other teams, but each professional sports league has legal protection for the team who holds his original rights. The player must bring back an offer sheet to his original team, as they have must decide to either keep him on the roster or let him leave the organization.

Instructions

    • 1

      The National Football League (NFL) players have to accrue a certain amount of time of service before they can receive a "qualifying" offer from their current team. Then the player can begin negotiating with other teams during a predetermined time frame.

      If a player agrees to an offer sheet with another club, his old team has a "right of first refusal" option, which is a seven-day period for them to decide to either accept or decline the offer. If they choose not to accept the contract offer, the player's original team can receive draft choices as compensation.

    • 2

      In the National Hockey League (NHL), a player can accept an offer sheet from a prospective employer. His current team is then notified and they cannot negotiate a contract with him or try to trade his rights to a different team.

      If his current team accepts the terms of the offer sheet, then the player remains on their roster and cannot be traded for one full season. If offer sheet is declined, the player is awarded to his new team and compensation will be determined by a salary scale.

    • 3

      In the National Basketball Association (NBA), restricted free agents can sign offer sheets, and their original team have seven days to match the contract. The offer sheet must be at least two years in length to be a valid contract. If the original team exercises their right of first refusal, then the player is their property once again.

    • 4

      In professional sports a "poison pill" is an important component of an offer sheet to secure the services of a player via free agency. It's usually a clause or provision inside the contract that's impossible for the original team to match. It's often disrupting to their current salary structure, and accepting the offer will hinder them from making future player transactions.