Player has 3 years at $15M/year remaining ($45M total).
Option A: Pay NPV approximately $41.3M immediately, counts toward current year only
Option B: Pay $15M/year for 3 years, counts toward each respective year
If ARSD = $160M, salary floor = $112M (70%). Team spending only $95M and missing playoffs pays $17M (difference) + $32M (20% of ARSD) = $49M total penalty, resulting in $144M total expenditure (90% of ARSD).
(X1,6-139.1M) = First year of 6-year, $139.1M extension contract
(X3,4-67.3M) = Third year of 4-year, $67.3M extension contract
If signed at the start of Block 8 with 7 blocks remaining in the 14-block season:
Base amount = $700,000 × 1.10 = $770,000
Pro-rated value = $770,000 × (7 ÷ 14) = $385,000
If a player finishing (F3, 5-75M) with $15M AAV rejects a $22.5M qualifying offer and signs a 6-year/$120M contract ($20M AAV) elsewhere, and this contract ranks in the top 10 free agent signings by APCV, the original team receives a Type A compensatory pick after Round 1.
3-year, $30M offer: APCV = ($30M × 1.80) ÷ 3 = $18M
5-year, $45M offer: APCV = ($45M × 2.30) ÷ 5 = $20.7M
The 5-year offer wins despite lower AAV ($9M vs $10M) due to higher APCV ($20.7M vs $18M)