OVERVIEW OF THE PLAYER CONTRACTS:
Each year prior to the draft you will select one which players to extend. Every year a player is extended the cost will go up an additional $12,001. There is no maximum that the player can reach however. The annual salary cap is $822,073 which accounts for all players, active, bench and injured list, with exception to you Minor Leagues.
MINOR LEAGUE CONTRACTS:
You are allowed to own minor leaguers that are allowed to be carried over from year to year with no penalty. That is so long as they never play a game at the MLB level. The following year after they make their MLB debut will force them to be contracted. However note that if they get sent back to the minors they are eligible to go back into the Minor League Roster, but will still need to be under contract.
TRADING CONTRACTED PLAYERS:
If you trade a player that is under contract the salary of said player maintains that value until the person is dropped. The team receiving the player will take on the full contract and the team that traded away will open up the cap space left behind.
DROPPING CONTRACTED PLAYERS:
If you drop a player that is has been contracted previously (aside from dropping before the draft), the system will penalize you at 50% of the salary owed for the remainder of that year.
