Edmonton Oilers fans continue to hold their breath while they wait for a contract extension for superstar Leon Draisaitl. While most expect Draisaitl to re-sign with the Oilers, each day that passes without an announcement is worrisome. While Draisaitl could demand north of $14 million annually on the market if he becomes a free agent after this season, the Oilers could look to the Carolina Hurricanes to bring down the average annual value (AAV) on Draisaitl’s next deal.
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The Hurricanes recently extended forward Seth Jarvis on an eight-year contract worth $7.42 million annually. However, Jarvis’ new deal has a deferred payment structure, which means some of the money he earns from signing bonuses gets paid to him the day after the current deal ends on July 1, 2032. While Draisaitl and Jarvis aren’t comparable players, the Oilers could do something similar to give Draisaitl the money he deserves, while bringing down the cap hit.
In the new Jarvis deal, the Hurricanes will defer $15.67 million of his total contract which stems from his signing bonus in years one, two, and seven of the contract. As explained below by PuckPedia, almost each year of the contract has a different money payout which impacts his cap hit for that specific season.
Jarvis #Canes 8 year $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 SBAmounts above include the present value of all deferred compensation. 15.67M Total is…
— PuckPedia (@PuckPedia) August 31, 2024
This type of deal has not been seen for a while. While the Phoenix Coyotes did it for Shane Doan’s contract, more recently, the MLB’s Los Angeles Dodgers’ superstar Shohei Ohtani had $680 million of his contract deferred until after his current deal was complete. This gives the Dodgers an advantage every season to try and compete with that extra money as Ohtani defers $68 million per season and only makes $2 million annually while playing.
While Jarvis is a huge part of the Hurricanes’ future, this contract structure was unexpected. But, it was a smart move by management. By the end of his eight-year deal, the Hurricanes will be in a completely different category and likely won’t be contending anymore, giving them the chance to rebuild when he becomes a free agent. At the same time, that…
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