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Contract Length: In BBM, the contract length means that players can be kept as Keepers for a maximum of three years, which means the year he is initially drafted, plus an additional two years. Owners, however, are not required to keep the players for three years. The three year period for a player is only reset if a team does not retain him, or if he is released into the Free Agent pool. Even if you pick him back up after releasing him as Free Agent, then his keeper term is still reset.
But, note that a player's Keeper term will go with the player even if he is traded. If a player is traded, then whatever restrictions he has (i.e., 2nd year player) will continue to apply to the new team.
First Rights: You can also designate a player as someone you want to keep after three years, and you retain 'First Rights' to him. The player goes back into the draft lists for everyone, and his salary is recalculated as usual. You will draft him at the new salary, as long as your salary cap is set high enough.
'First Rights' players count against the 7-10 players that you are allowed to retain. And as long as you retain that player every year, you will continue to have 'First Rights' to him.
Salaries: The salaries will be fixed at the previous year's salary with 10% cost-of-living increase per player. There will be a minimum $100K increase, and the maximum salary of $5M. The salaries are determined by taking their previous year-end salary and adding a 10% cost of living increase. This 10% increase applies each year that you designate a Keeper.