PLAYER CONTRACTS

Contract String Format: All player contracts are designated using a standardized string notation that identifies the contract type, year, length, and value.
Contract Type Designations:
- AA: Minor League (Non-carded)
- AAA: Minor League (Carded)
- Y1, Y2, Y3: Type Y Entry-Level Contracts (Years 1-3)
- Arb4, Arb5, Arb6: Arbitration Contracts (Years 4-6)
- L: Type L Long-Term Extension
- F: Type F Free Agent Contract
- X: Type X Extension Contract
- U: Type U Utility/Emergency Contract
- Q: Type Q Qualifying Offer
- q (lowercase): Permanent marker added to a player's contract string after after being offered a qualifying offer, indicating the player is ineligible to receive another qualifying offer in their career
Asterisk Notation: When a player repeats a contract year due to not achieving a qualifying season, an asterisk is added to the contract designation (e.g., Y2*, Arb5*).
Multi-Year Contract Notation: For contracts spanning multiple years (Type F, Type L, Type X, and Type U), the format is: (Type#, Years-TotalValue)
Type = Contract type designation (F, L, X, or U)
# = Current year of contract (1, 2, 3, etc.)
Years = Total years of contract
TotalValue = Total contract value in millions (with M suffix)

Qualifying Season Thresholds: A player achieves a qualifying season by meeting ANY of the following criteria during a single season with a printed Strat-O-Matic card:
80 plate appearances (PA) for position players
20 innings pitched (IP) total for any pitcher
Service Time Accrual: Players who achieve a qualifying season accrue one year of service time, which determines contract progression and free agency eligibility.
Contract Progression: Achieving a qualifying season advances a player to the next contract level (e.g., Y1 to Y2, Arb4 to Arb5).
Non-Qualifying Seasons: Players who do not achieve a qualifying season repeat their current contract year with an asterisk designation. Type Y players receive the same salary. Arbitration players go through the entire arbitration process again with the asterisk designation.

Arbitration Eligibility and Timeline:
All players on Arb4, Arb5, or Arb6 contracts at the start of the off-season must go through the arbitration process.
Teams have until November 15th to decide whether to tender a contract offer or non-tender (release) arbitration-eligible players.
Arbitration Process Mechanics:
- Team Bid Submission (November 20th deadline):
The team submits a sealed salary offer to the Commissioner
The offer must meet minimum arbitration year requirements
The team does not know the calculated player request at time of bid
- Player Request Calculation:
After team bids are submitted, the Commissioner calculates each player's salary request using the PQF formula (Rule 4.11)
The calculation includes a variance roll (d100) that makes the exact request unpredictable
The variance multiplier is applied to the base PQF calculation
- Bid Comparison:
The Commissioner reveals both the team's offer and the player's calculated request
If the team's offer meets or exceeds the player's request, the player automatically accepts the team's offer
If the team's offer is below the player's request, the team must choose to either:
Accept the player's request amount, OR
Proceed to arbitration hearing
Arbitration Hearing:
- If the parties proceed to arbitration hearing, an independent arbitrator (Commissioner or designated neutral party) must select either the team's offer OR the player's request - no compromise amount is allowed.
- Arbitration Hearing Decision Table (d100):
- The arbitration decision is final and binding.
- Immediate consequences of arbitration hearing:
Player permanently loses eligibility for Type L (long-term) contracts with this team
Team cannot sign this player during his first free agency period
Commissioner will publicly post: "Player X ineligible to sign with Team Y until [year]"
- Long-term consequences:
If player reaches free agency after Arb6 expires, the team that arbitrated cannot bid on the player in his first FA period
Player can sign with any other team immediately upon reaching free agency
Team regains bidding eligibility in player's second FA period or later (if player is still available)
- Exception to arbitration penalty: If a player is traded to a new team and plays a full season with that team, the new team becomes eligible to offer Type L contracts regardless of previous arbitration history with the original team.
Variance Chart (d100):
The variance roll modifies the player's base PQF calculation:

Type AA Contracts:
- Eligibility: Non-carded prospects who have been drafted but have not yet received a Strat-O-Matic card
- Salary: $100,000 annually
- Progression: Upon receiving a Strat-O-Matic card, players automatically advance to AAA contracts
Type AAA Contracts:
- Eligibility: Carded players who have not yet achieved a qualifying season
- Salary: $200,000 annually while in the minors; $700,000 prorated when called up to the majors
- Progression: Upon achieving a qualifying season, players advance to Y1 contracts
Roster Status: Both AA and AAA players count toward the 50-man roster. Only AAA (carded) players count toward the 40-man roster.

Eligibility: Players who have achieved their first qualifying season advance from AAA to Y1 status.
Contract Salaries:
Y1: $750,000
Y2: $800,000
Y3: $850,000
Contract Progression: Players advance from Y1 to Y2 to Y3 upon achieving a qualifying season in each respective year.
Repeat Years: Players who do not achieve a qualifying season repeat their current Y contract year with the same salary and an asterisk designation (Y1*, Y2*, Y3*).

Eligibility: Players who complete their Y3 contract and achieve a qualifying season become eligible for Arb4.
Contract Progression: Players advance from Arb4 to Arb5 to Arb6 upon achieving a qualifying season in each respective year.
Repeat Years: Players who do not achieve a qualifying season repeat their current Arb year with an asterisk designation (Arb4*, Arb5*, Arb6*) and go through the arbitration process again.
Salary Determination: Arbitration contract salaries are determined through the arbitration process detailed in Rule 4.6, using the Player Quality Factor (PQF) methodology outlined in Rule 4.11.

Eligibility:
- Eligibility Window: Players are eligible for Type L contracts after completing their Y1 contract but before completing their Arb6 contract.
- Contract Timing: Type L negotiations must be completed before opening dat.
Contract Structure:
- Type L contracts have an equal annual value in all years of the contract.
- Minimum Length: 2 years
- Maximum Length: 7 years total
Type L contracts are calculated using the PQF formula (Rule 4.11) with discount factors applied based on the player's current contract stage.
Type L contracts immediately replace all remaining Y-contracts and arbitration years.
A minimum of 1 free agent year must be purchased, but it is possible to buy out years of free agency.

Definition: Type F contracts are standard free agent contracts signed through the free agency process detailed in Rule 5.
Eligibility: Players become eligible for Type F contracts upon:
Completing Arb6 and reaching free agency
Being non-tendered with 3+ years service time
Completing a previous Type F, Type L, Type X, or Type U contract

Eligibility and Timing:
- Teams may offer Type X extensions to players currently under Type F contracts.
- Type X negotiations must be completed by March 31st deadline.
Type X contract value is calculated using the PQF formula (Rule 4.11) with premium factors applied.
Contract Length Restrictions:
Maximum Extension Length: The Type X extension may be up to 4 years longer than the number of years remaining on the original Type F contract, with a maximum total contract length of 8 years.

Eligibility: Type U contracts are for fill-in players for the remainder of the regular season or selected in secondary free agency.
Type U Salary Calculation: Base annual amount = $700,000 × 1.10 = $770,000

Type Q contracts are signed through the qualifying offer process.
After a player is offered a qualifying offer they will have a lowercase q added to their contract string as a reminder that the player cannot be offered a qualifying offer.
Players on a Type Q contract are ineligible to be traded.

The Player Quality Factor (PQF) is a universal formula used to calculate fair market value for Type L, Type F, Type X, and Arbitration contracts. The complete PQF formula and its application are detailed in Appendix B.