What Is An Entry Level Contract In The NHL?

If you’re new to the NHL or hockey in general, you may be wondering what an entry level contract is. Here’s a quick explanation of what an entry level contract is and what it entails.

Introduction

In the National Hockey League (NHL), an entry level contract (ELC) is a contract that limits the amount of money a player can earn in his first few years of play in the league. The specific terms of the contract are governed by the NHL’s collective bargaining agreement (CBA) with its players.

All players who sign their first NHL contract must sign an ELC, regardless of their age or experience. The CBA stipulates that all ELCs must be for a minimum of two years and a maximum of three years in length. In general, players on an ELC will earn less money than veteran players in the league.

The main purpose of an ELC is to help teams control their costs as they build their rosters with young, inexperienced players. Many players will never play a single game in the NHL and will instead spend most of their careers in the minor leagues. However, for those players who do make it to the NHL, their entry level contracts will provide them with a solid foundation on which to build their careers.

What is an Entry Level Contract (ELC)?

An entry-level contract (ELC) in the National Hockey League (NHL) is a standard contract used by all teams that controls a player’s rights for the first three years of their professional career within the league. The contract is worth a maximum of $925,000 per season and can include signing and performance bonuses. Players on an entry-level contract are also subject to the league’s Collective Bargaining Agreement (CBA), which includes provisions such as rookie salary caps and restrictions on movement.

After the expiration of an entry-level contract, a player becomes a restricted free agent (RFA), meaning that their team has the right to match any offer sheet that the player may sign with another team. If the player’s team does not match the offer sheet, they may be entitled to draft pick compensation from the signing team. Once a player has completed seven years of professional service, they become an unrestricted free agent (UFA) and can sign with any team without restriction.

The NHL Entry Draft is held annually in late June and is used by teams to select players who have been indentured to them through an ELC. These players are typically 18-21 years old and have been playing hockey at the junior level, in college, or in Europe. Players who are 23 or older and have completed four years of college hockey are also eligible for selection in the draft.

After being drafted, a player must be signed to an ELC before they can play in the NHL. If they are not signed within two years of being drafted, they become ineligible to play in the NHL and become re-entered into the draft.

The Different Types of ELCs

An entry level contract (ELC) in the National Hockey League (NHL) is a contract a player signs upon his entry into the NHL. There are three different types of ELCs, which are all governed by the NHL’s collective bargaining agreement (CBA): Standard Player’s Contract (SPC), Two-Way Player’s Contract (TPC), and One-Way Player’s Contract (OPC).

A Standard Player’s Contract is the most basic and common type of ELC. It is a one-year contract that pays the player a set salary, known as the “NHL minimum salary,” regardless of whether he plays in the NHL or is sent down to play in the minor leagues. The minimum salary for the 2019-20 season is $700,000.

A Two-Way Player’s Contract is similar to an SPC, except that it pays the player a different salary depending on which league he plays in. For example, if a player on a two-way contract was earning $700,000 in the NHL but was sent down to play in the AHL, his salary would be reduced to $300,000. The two-way contract gives teams more flexibility when it comes to managing their salary cap.

A One-Way Player’s Contract is basically an SPC with one key difference: even if the player is sent down to play in the minor leagues, he still receives his full NHL salary. One-way contracts are typically given to players who have proven they can be successful at hockey’s highest level.

The above descriptions are just brief overviews of each type of ELC. For more detailed information, please consult the relevant sections of the CBA or speak with an experienced hockey lawyer.

How Long is an ELC?

An entry level contract (ELC) in the National Hockey League (NHL) is a contract staff gave to a player who is new to the NHL. These are typically given to players who have played in junior hockey, college hockey, or overseas and are now making their debut in the NHL. The contract is for a set length of time, which is usually three years, and the salary is also predetermined. The most common reason why an ELC is only three years long is because it allows the player and team to see how well the player adjusts to the professional level before signing a longer, more lucrative contract. If a player meets certain standards during their ELC, they may be eligible for what’s called an “entry level slide.” This means that their contract will be extended by one year but their salary will stay the same.

What is the Salary Cap for an ELC?

The NHL’s salary cap for entry level contracts is $925,000 per season. This figure represents the maximum amount of money that a team can spend on a player’s salary in any given year. Players who are on an entry level contract are also subject to a yearly bonus structure, which cannot exceed 10 percent of their base salary in any given year.

What Happens if a Player is Traded During their ELC?

If an NHL player is traded during their entry level contract (ELC), the new team will assume the player’s contract and the player will continue to be paid by the original club. However, if a player is traded after their ELC has expired, they will become an unrestricted free agent and can sign with any team.

Are There Any Bonuses Included in an ELC?

An ELC may also include some form of bonus, either in the form of a signing bonus given to the player upon signing the contract, or a performance bonus given to the player based on certain statistical thresholds being met during the course of the contract. These types of bonuses are typically included in an ELC in order to incentivize a player to sign with a team, as well as provide additional financial compensation should the player outperform expectations.

What Happens After an ELC is Completed?

After a player completes his three-year entry-level contract, he becomes a restricted free agent. If the player is still within his first four professional seasons, he will remain under team control and is not eligible to become an unrestricted free agent. The team has the right to match any offer sheet the player signs with another team. If the team elects not to match the offer sheet, it will receive draft compensation from the signing team.

Conclusion

In conclusion, an entry level contract in the NHL is a great way for young players to get their start in the league. It can be a great way to showcase your skills and earn a spot on an NHL roster. However, it is important to understand the ins and outs of an entry level contract before signing one.