ARTICLE 9 - THE ENTRY-LEVEL SYSTEM

[This section currently under construction]

        Players under age 25 as of September 15 in the calendar year their first NHL contract is signed are subject to the terms of Article 9 and must sign an entry-level contract (ELC).  This means the amount of salary and team-paid performance bonuses is capped, depending on his draft year or the year he signs.  The length of the ELC is also specified based on the player’s age, and may not be modified for any reason.

          Age               Length of ELC
       18-21                                         3 years    
       22-23                                         2 years    
       24                        1 year   
             25+                   Not Subject     

         The only exception to the final line in the table is a player age 25-27 from Europe who was drafted and is signing his first NHL contract; such players are subject to the Entry-Level System for one (1) year.

        All ELC’s are by definition 2-way contracts; no player subject to the Entry-Level System may receive a 1-way contract.  “Age” is as of September 15 in the calendar year of signing an SPC, regardless of the player’s actual age when signing.

        A player’s ELC may be extended for three reasons:
        1. If a player age 18 or 19 signs an SPC and does not play at least ten (10) NHL games in the first season, his contract will extend for one (1) year.
        2. If a player age 18 signs an SPC and his contract is extended as above, and in the 2^nd year does not play at least ten (10) NHL games, his contract will extend for one (1) additional year.
        3. If a player fails to give his playing services called for under his SPC [except as a result of injury, illness, or disability] while in the Entry-Level System, his contract will extended while he fails to offer those services.

The maximum allowable salary for each Entry Draft are as follows:
2001:  $858,800
2002:  $900,600
2003:  $942,400
2004:  $984,200
2005:  $850,000
2006:  $850,000
2007:  $875,000
2008:  $875,000
2009:  $900,000
2010:  $900,000
2011 and after:  $925,000

       If the player is drafted, the maximum salary is based on the year he was drafted; otherwise, it is based on the limits applicable to the prior Entry Draft.  “Salary” includes signing bonus and games played bonuses.  No player signing an ELC may receive bonuses other than games played, Exhibit 5, and signing bonuses.  Exhibit 5 bonuses are limited to $2.85 million and are explained below.  Signing bonuses are limited to 30% of the total compensation [excluding Exhibit 5 bonuses] for players drafted in 2004 and prior, and 10% for players drafted in 2005 and later.  Terms for draft picks from 2004 and prior are fully explained in Exhibit 16 of the CBA and are a carryover from the prior CBA.

       Examples:
    1. A player born on July 1, 1990 which is drafted in 2008 and signs a contract in 2008 is considered 18 years of age and receives a 3-year contract and may receive a salary of up to $875,000 [of which $87,500 may be a signing bonus].
    2. A player born on July 1, 1989 which is drafted in 2007 and signs a contract in 2008 is considered 19 years of age and receives a 3-year contract and may receive a salary of up to $875,000 [of which $87,500 may be a signing bonus].
    3. A player born on September 1, 1987 which is drafted in 2005 and signs in 2008 is considered 21 years of age and receives a 3-year contract and may receive a salary of up to $850,000 [of which $85,000 may be a signing bonus].
    4. A player born on September 20, 1986 which is drafted in 2004 and signs in 2008 is considered 21 years of age and receives a 3-year contract and may receive a salary of up to $984,200 [of which $295,260 may be a signing bonus].
    5. A player born on June 1, 1986 which is drafted in 2004 but whose rights are relinquished and subsequently signs in 2008 is considered 22 years of age and receives a 2-year contact and may receive a salary of up to $875,000 [of which $87,500 may be a signing bonus].
    6. A player born on June 1, 1986 which is drafted in 2004 and signs in 2008 before his rights are relinquished is considered 22 years of age and receives a 2-year contract and may receive a salary of up to $984,200 [of which $295,260 may be a signing bonus].
 

       Exhibit 5 Bonuses

       Players on an entry-level contract may also earn certain performance bonuses.  These bonuses are split into two types:  Schedule A and Schedule B bonuses.  Schedule A bonuses are paid only by the team and must be specified in the contract; they are limited to $212,500 per individual bonus [teams may pay less than this amount] and $850,000 for all Schedule A bonuses in total, no matter how many contracted bonuses are achieved.  Schedule B bonuses paid by the team must be specified in the contract; teams may pay no more than $2 million in the aggregate to any player.  All ELC players may earn Schedule B bonuses paid by the league even if such bonuses are not paid by the team, with the amounts the league will pay stated in Exhibit 5.

       Thus, the maximum any player may earn in Exhibit 5 bonuses under this CBA is $2.85 million - this applies to every player signed to an ELC, regardless of when [or if] the player was drafted.