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11-13-2012, 02:26 PM
  #135
rojac
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Another reason to limit contract lengths is to protect "franchises" from owners and GMs who may sign players to irrationally long contracts to obtain them, but aren't worried about the consequences because they don't plan on being there when the contract becomes a burden.

For example, a team signs a 27 year old star to a $8M a year contract (each year pays him $8M with no back- or front-loading) for 12 years. For the first few years, the star probably going to earn his money, but after, say, 5 or 6 years, he is going to start to decline and no longer be worth it. However, the GM offers the deal and the owner approves it because neither one figures they'll be there for more than 5 or 6 years themselves, so the declining years are going to be happening on someone else's watch. With shorter contract lengths, you can limit the long-term damage to a franchise that can be done by an owner or GM.

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