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CBA 101 Part 9: Restricted Free Agent Compensation

As the name suggests, restricted free agency is a type of free agency in which the player has the ability to entertain offers from other clubs; but there are certain restrictions in place. The “Prior Team” who owned the player’s rights throughout the previous season, maintains those rights and can retain that player if they so choose. The first step in maintaining those rights is to present a qualifying offer to the restricted free agent, which would grant the team what is known as the “Right of First Refusal”. If the restricted free agent were to sign an “offer sheet” …