Edmonton Oilers followers proceed to carry their breath whereas they look forward to a contract extension for famous person Leon Draisaitl. Whereas most anticipate Draisaitl to re-sign with the Oilers, every day that passes with out an announcement is worrisome. Whereas Draisaitl may demand north of $14 million yearly in the marketplace if he turns into a free agent after this season, the Oilers may look to the Carolina Hurricanes to deliver down the typical annual worth (AAV) on Draisaitl’s subsequent deal.
Associated: Maple Leafs Ought to Make the most of Deferred Cost with Marner’s Subsequent Contract
The Hurricanes lately prolonged ahead Seth Jarvis on an eight-year contract value $7.42 million yearly. Nevertheless, Jarvis’ new deal has a deferred cost construction, which suggests among the cash he earns from signing bonuses will get paid to him the day after the present deal ends on July 1, 2032. Whereas Draisaitl and Jarvis aren’t comparable gamers, the Oilers may do one thing just like give Draisaitl the cash he deserves, whereas bringing down the cap hit.
Within the new Jarvis deal, the Hurricanes will defer $15.67 million of his complete contract which stems from his signing bonus in years one, two, and 7 of the contract. As defined beneath by PuckPedia, nearly annually of the contract has a unique cash payout which impacts his cap hit for that particular season.
Jarvis #Canes 8 yr $7.42M Cap Hit:
Yr 1 $2M Base & $7.233M Signing Bonus
Yr 2 6M & 3.41M SB
Yr 3 4.25M & 4M SB
Yr 4 6.57M
Yr 5 6.57M
Yr 6 6.57M
Yr 7 1M & 5.187M SB
Yr 8 1M & 5.57M SBQuantities above embrace the current worth of all deferred compensation. 15.67M Whole is…
— PuckPedia (@PuckPedia) August 31, 2024
One of these deal has not been seen for some time. Whereas the Phoenix Coyotes did it for Shane Doan’s contract, extra lately, the MLB’s Los Angeles Dodgers’ famous person Shohei Ohtani had $680 million of his contract deferred till after his present deal was full. This offers the Dodgers a bonus each season to try to compete with that extra cash as Ohtani defers $68 million per season and solely makes $2 million yearly whereas enjoying.
Whereas Jarvis is a big a part of the Hurricanes’ future, this contract construction was sudden. However, it was a wise transfer by administration. By the tip of his eight-year deal, the Hurricanes shall be in a totally totally different class and sure received’t be contending anymore, giving them the possibility to rebuild when he turns into a free agent. On the similar time, that $15.67 million sits towards the cap for just one season, which shouldn’t trigger any points in the event that they’re in the midst of a rebuild by that time.
Oilers Ought to Use Comparable Technique With Draisaitl
If the Oilers wished to avoid wasting cash whereas they continued to contend for a Stanley Cup for the subsequent few seasons, they need to take an analogous method. Whereas many individuals have tried to foretell what Draisaitl shall be asking for on his subsequent contract, it’s protected to imagine it will likely be round $13 million yearly. With some deferred cash, the Oilers may drop that to round $12 million per season.
A deferred contract would assist administration re-sign gamers who want new offers within the coming season, together with Connor McDavid and Evan Bouchard. Saving some cash on Draisaitl’s cap hit, and if all three are open to taking much less cash to stay in Edmonton, the Oilers will be capable to signal free brokers or add large names on the commerce deadline.
Utilizing the Jarvis extension as a reference may velocity up the method for Draisaitl and the Oilers. Now that there’s a totally different option to get an extension accomplished, it wouldn’t be shocking if the 2 sides sped up negotiations heading towards coaching camp, and this was the construction they adopted. This unorthodox extension would profit the Oilers and the crew’s future. On high of that, I wouldn’t be stunned if many groups began to make use of this technique to assist themselves out.
Whether or not or not the Oilers determine to discover this route throughout negotiations with Draisaitl, it’s value contemplating.
