New NHL contract formula may be used next on Leon Draisaitl extension with the Edmonton Oilers
The new Seth Jarvis contract could give the Oilers a new way to save money on some massive upcoming extensions.
With Seth Jarvis signing his contract earlier today, many were very confused on the exact figures that he's making. Jarvis signed a $63.2M dollar contract earlier today, which only carries a $7.5M dollar cap hit through the 8 years of the contract.
The other $3.2M dollars is granted as a «signing bonus», the day after the contract expires. This figure hits the Hurricanes in the following year, going against their books for the 2033-34 season.
This contract setup is one that has been more popular in other sports, but has barely been explored in the NHL. This Jarvis contract may be huge for the NHL, as it may be the first contract to publicize the use of deferred salary contracts.
One team that could definitely use deferred salary contracts is the Oilers. With Draisaitl's contract coming up, the Oilers are looking towards a massive payday for his extension. Draisaitl's team has been looking towards a contract around $14M AAV.
If the Oilers can give Draisaitl a deferred contract, they can reduce the AAV of his contract by anywhere from $100,000 to $1.5M dollars. The restraints of a deferred contract are almost limitless, and are only limited by the amount of time the Oilers are willing to sacrifice in the future.
https://oilersnation.com/news/could-the-oilers-leon-draisaitl-be-the-next-nhl-player-to-have-deferred-money-in-a-contract
These deferred salary contracts would be great for a team in win-now mode, as they would sacrifice their future cap after the contract expiration. If the Oilers did this with Draisaitl, they could reduce the cap hit of his contract now to pay for it in 9 years from now.
This contract could also work with McDavid, since he is due for an extension next year. If both McDavid and Draisaitl take deferred salary contracts, the Oilers can have a lot of money in savings from their contracts to spend elsewhere. This kind of contract could be a massive game changer for teams in their win-now window, and could be a great strategy for teams to utilize in the future.
| POLL | ||
Would you want to see Draisaitl's contract have deffered money? | ||
| Yes, it'll help win a cup | 124 | 64.9 % |
| No, it'll mess up the future | 67 | 35.1 % |
| List of polls | ||
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