Contracts of Unrestricted Free Agents

NCAA Income Tax Teams have two distinct functions. The first is to collect all of the tax-free money from college athletic revenue, and distribute it to the different schools as is. The second is to process the money owed to the schools by collecting payment from the athletes who receive it. Each school has its own processes for doing this, and these processes change from year to year. However, in general, each school follows one of the following methods for disbursing NCAA income tax:

Academic Repayment (ASA): Each college athlete signs a one year Master Scholarship Agreement. On July 1st of his/her freshman season, the player signs a one year Master Scholarship Agreement. If he/she is not injured during the course of his/her Sophomore or Junior season, the player may sign a two year Agreement. In these cases, the athlete must sign a one year Master Scholarship Agreement if he/she is a sophomore or junior. He/she may sign a one year Agreement if he/she is a senior on that same year of college. Thus, if he/she signs an Agreement in any of these years, he/she must sign a one year Master Scholarship Agreement if he/she is a junior or a senior. Click here for more details about ufa

Compensation Over Time (COT): Each year, a player has the opportunity to sign a compensation over time (COT). Each coach has the option of which players can receive COT payments. A player becomes a restricted free agent (RFA) on July 1st of his/her sophomore season if he/she has not been signed as a scholarship. If he/she is signed as a scholarship, he/she becomes a restricted free agent on July 1st of each of the following three seasons. If he/she signs an RFA Agreement, he/she becomes a unrestricted free agent on July 1st of the fourth season in which he/she was a scholarship player. If he/she signs an RFA Agreement, he/she becomes a restricted free agent on July 1st of the fifth season in which he/she was a scholarship player.

Covered Players (Covered UFA): In order for a player to be considered a Covered Player, he/she must sign a one year Master Scholarship Agreement and make his/her F-1 Visa eligible to play at the university of his/her choice for one year. The Covered player will also be required to participate in the NCAA's Auto hump Tournament. He/she may have up to one year of scholarship available after he has met all of the eligibility requirements. In addition, a Covered player may play in the United States National Team Training camp for a period of one year following his/her signing of a one year Master Scholarship Agreement.

Michael Redd, a NBA player for the Philadelphia 76ers was recently bought by the Denver Nuggets as a minimum salary player. Michael Redd has a contract that runs through the end of this season. However, according to ESPN, it was reported that Michael Redd has requested a release from his contract and is seeking a signing four-year deal worth of 20 million dollars.

Redd is coming off of a very good season with the Denver Nuggets where he played in 36 games scoring 14 points a game. He is one of only three players in the NBA's history to have their name in the Basketball Writers Association's Top 5 Most Valuable Players list. Michael Redd's demand for a big pay day is based upon the fact that he is only a restricted free agent who doesn't have a full no-trade protection in his RFA years.