ARTICLE 9: ENTRY LEVEL COMPENSATION
9.1 Applicability and Duration. Effective with SPCs entered into after the execution of this Agreement:
(a) No Club may enter into an SPC with a Rookie that provides for compensation in excess of that permitted by this Article.
(b) Subject to subsection (c) below, the period covered by the SPC for every Rookie, and the number of years that such Player will be in the Entry Level System and subject to the compensation limits set out in this Article, shall be as indicated on the chart immediately below, and during such period, the Player shall be deemed to be a "Group 1 Player":
First SPC Signing Age Period Covered by First SPC
and Years in the Entry Level System
and Subject to Compensation Limits
18-21 3 years
22-23 2 years
24 1 year
25 and older No required number of years, not in the Entry Level
System and not subject to limits on compensation
(c) Notwithstanding the chart set forth in (b) above, a Player who at the time he was drafted was playing for a team outside North America or who meets the qualifications set forth in Article 8.4(a)(v) (a "European Player") who signs his first SPC at ages 25-27 shall be subject to the Entry Level System for one (1) year. A European Player who signs his first SPC at age 28 or older is not subject to the Entry Level System under any circumstances.
(d) (i) In the event that an 18 year old or 19 year old Player signs an SPC with a Club but does not play at least ten (10) NHL Games in the first season under that SPC, the term of his SPC and his number of years in the Entry Level System shall be extended for a period of one (1) year, except that this automatic extension will not apply to a Player who is 19 according to Section 9.2 by virtue of turning 20 between September 16 and December 31 in the year in which he first signs an SPC. Unless a Player and Club expressly agree to the contrary, in the event a Player's SPC is extended an additional year in accordance with this subsection, all terms of the SPC, with the exception of Signing Bonuses, but including Paragraph 1 Salary, games played bonuses and Exhibit 5 bonuses, shall be extended; provided, however, that the Player's Paragraph 1 Salary shall be extended in all circumstances.
(ii) In the event that a Player signs his first SPC at age 18 and has had his SPC extended pursuant to Subsection (i), and such Player does not play at least ten (10) NHL Games in the second season under that SPC, then the term of his SPC and his number of years in the Entry Level System shall be extended for one (1) additional year. Unless a Player and Club expressly agree to the contrary, in the event a Player's SPC is extended an additional year in accordance with this Subsection, all terms of the SPC, with the exception of Signing Bonuses, but including Paragraph 1 Salary, games played bonuses and Exhibit 5 bonuses, shall be extended; provided, however, that the Player's Paragraph 1 Salary shall be extended in all circumstances.
(iii) In the event a Player ceases to render his playing services called for under his SPC (except as a result of injury, illness or disability) during such period that he is in the Entry Level System, then during such non-playing period, the Player's number of years in the Entry Level System shall be extended for a period equal to the remaining unfulfilled portion of his SPC.
(iv) The return dates to Major Juniors (as established by Agreement between the NHL and the Canadian Hockey League, dated May 2, 1995 (or any successor or similar agreement so long as there is no material change in those return dates)), and the minor leagues (as set forth in Section 8.7) are hereby confirmed and affirmed and are continued during the term of this Agreement and any extension hereof (e.g., return dates, prohibition on sending underage players to minors).
9.2 Age of Players. As used in this Article, "age," including "First SPC Signing Age," means a Player's age on September 15 of the calendar year in which he signs an SPC, regardless of his actual age on the date he signs such SPC.
9.3 Entry Level Compensation Limits.
(a) The maximum annual aggregate Paragraph 1 NHL Salary, Signing Bonuses and games played bonuses permitted to be paid to a Group 1 Player shall be as follows:
Draft Year NHL Compensation
2005 US$ 850,000
2006 US$ 850,000
2007 US$ 875,000
2008 US$ 875,000
2009 US$ 900,000
2010 US$ 900,000
2011 US$ 925,000
If the NHLPA exercises its right to extend this Agreement until 2012, the maximum annual aggregate Paragraph 1 NHL Salary, Signing Bonuses and games played bonuses permitted to be paid to a Group 1 Player shall be U.S. $925,000. All amounts are the maximum annual aggregate amounts for each League Year of the Player's first SPC. For example, an 18 year old Player drafted in 2005 and signing an SPC at the age of 19 must sign a three-year SPC, with a maximum compensation of U.S. $850,000 per League Year.
(b) The aggregate of all Signing Bonuses attributable to any League Year to be paid to a Group 1 Player may not exceed 10% of the Player's compensation for such League Year. Games played bonuses attributable to a League Year shall be included in compensation for that League Year at their full potential value (i.e., assuming all such bonuses are earned) and shall be treated as Paragraph 1 NHL Salary. A Group 1 Player may not contract for or receive any bonuses whatsoever other than a Signing Bonus, a games played bonus and Exhibit 5 Bonuses.
(c) The provisions of this Article 9 (including without limitation, the terms specified in Exhibit 5) shall have no application to any Player other than a Player who is subject to the Entry Level System in accordance with this Article 9.
(d) Draft-related Unrestricted Free Agents will be subject to the maximum annual aggregate compensation limits set forth in this Section 9.3 applicable in the Entry Draft year immediately preceding the date on which the Player signs his Entry Level SPC. For example, a Draft-related Unrestricted Free Agent Player signed after the date of the 2005 Entry Draft and prior to the 2006 Entry Draft will be subject to the maximum annual aggregate compensation for Players drafted in the 2005 Entry Draft (i.e., $850,000). Such a Player will be subject to all of the other terms and provisions of this Article 9, including without limitation, the terms of Exhibit 5 and the maximum annual Signing Bonus for a Draft-related Unrestricted Free Agent will be limited to 10% of the Player's compensation in any League Year.
9.4 Minor League Compensation. Each SPC entered into with a Rookie in the Entry Level System shall automatically be deemed to be a "two way" SPC with a minor league salary equal to the Paragraph 1 Minor League Salary set forth in such SPC or, if no minor league salary is set forth, the greater of (i) $35,000 (Native Currency) and (ii) the minimum minor league salary provided for Players in the Minors; provided, however, in no event may such an SPC provide for minor league compensation, including any bonuses for games played, greater than the amount indicated on the following chart:
Draft Year Maximum Minor League
Compensation (Native Currency)
2005 $ 62,500
2006 $ 62,500
2007 $ 65,000
2008 $ 65,000
2009 $ 67,500
2010 $ 67,500
2011 $ 70,000
A Group 1 Player may not contract for or receive any bonuses for minor league service other than a games played bonus.
If the NHLPA elects its right to extend this Agreement to 2012, as set forth in Article 3, the maximum minor league compensation in 2012 shall be $70,000 (Native Currency).
The maximum compensation payable to a Group 1 Player who is playing in the Major Juniors shall be $10,500 per League Year.
9.5 Exhibit 5 Performance Bonuses. Clubs and Players may negotiate, and a Player who is subject to the Entry Level System under Article 9 may be paid bonuses for the types of performance, and in the maximum amounts, set forth in Exhibit 5.
9.6 Player Contract Extensions. SPCs for Group 1 Players may not be extended.
9.7 Loans to East Coast Hockey League. Players who are party to an Entry Level SPC may be Loaned to the East Coast Hockey League ("ECHL") without the requirement of Player consent, provided the Player will continue to be paid the stated amount of the AHL portion of his two-way SPC in the Native Currency of the NHL Club.
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