I only give high value contracts to those that have a lot of potential value (according to my spreadsheet), those that have a decent level of potential (but have a lot of experience banked), or perennial starters who have zero roster competition. Everyone else is offered their requested salary +20%, but with no bonus. They end up being release fodder down the line if I find someone better/cheaper in FA or in the draft.
Edit: Adding this little bit. I don't extend a backup to a long term high value contract if they have high potential, but aren't the projected starter. An example in my past offseason, I had a MLB go down in preseason with a season ending injury. His backup came in, dominated, and nearly won Defensive Player of the Year (second in total tackles, top 5 in sacks, decent forced fumble amount). He was also in a contract year (and had 110k experience points saved up...mind you, I gave him no game prep and simmed the entire season). He wanted a $7m/4 year contract. Without spending his experience, he was still considered the backup, but I knew with spending his experience, he would jump up and become the starter. I ended up giving him $8m/2. More than twice the annual he asked for, for half the years. This would at least give him the chance to get a huge contract when he hit 26 (he was 24 at this time). After resigning him, I pumped him up, and he jumped from 74 to 91 (also bumped him to superstar from normal). 2 years down the line, he will most likely be 95+ and be asking for a ton of cash.
I want to try and play this as close to real as possible. Id never try to sign a player like the previous mentioned to a max length contract for the minimum he will accept, then boost him. But that's just my style.
Edit#2: As for deserving roster spots. If someone played 0 downs for me, I most likely won't resign them, unless they are a project. If someone had an amazing season, and is in their prime, I'll give them a contract. Average season (prime or not), may get an offer depending on position depth and what the draft looks like. If someone has played poorly for their contract length, they won't stay (typically these people get released in preseason prior to needing to resign them).
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