In the NHL, the term RFA stands for restricted free agent. Players who fall under this category can generally expect to receive a raise in pay, but they cannot freely sign with another team without that team giving up draft picks. NHL teams usually stay away from restricted free agents because signing them brings inherent risk.
Definition
The NHL Collective Bargaining Agreement allows teams to protect players who have not played in the league for lengthy periods and prevents other teams in the league from signing them without compensation. Restricted free agents have had their initial contracts expire, but the team retains their rights because of this rule. Players between 18 and 21 must have three years of professional experience, players between 22 and 23 must have two years of experience and players 24 or older must have one year of experience to qualify as restricted free agents.
Qualifying Offer
To retain a player's rights as a restricted free agent, the team must make him a qualifying offer. If a player made $660,000 or less in the previous season, the team must offer him 110 percent of his previous salary. If a player made more than $660,000, but less than $1 million, the team must offer him 105 percent of last season's wages. Players who make $1 million or more must receive a qualifying offer equal to the previous season's salary. Teams must make these offers by the first Monday after the NHL Entry Draft.
Offer Sheets
If another team wants to sign a restricted free agent, it must extend an offer sheet for that player to sign. Once a player signs an offer sheet, his team has the right to match that offer and retain him for another season. If the player's original team does not match the offer, the player can sign a contract with the team that tendered the offer sheet.
Compensation
When a restricted free agent signs with another team, his original team usually receives compensation through draft picks. The quality of the draft picks depends on the amount that the new teamed offered the player through the offer sheet. The previous team does not receive any compensation for players who sign for $660,000 or less. If a player signs a contract for $660,001 to $1 million, his new team will give a third-round draft choice to his old team. Contracts between $1 million and $2 million require a second-round pick in exchange, while contracts between $2 million and $3 million require a first- and a second-round pick. If a player signs for between $3 million and $4 million, his new team will send the old team one first-, one second- and one third-round draft pick. Signings between $4 million and $5 million cost two first-rounders, along with a second- and a third-round pick. Any contact over $5 million requires four first-round draft choices as compensation.
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