The Toronto Maple Leafs and Mitch Marner are once again in a contract negotiation that continues to have an unknown ending. It could be one where Marner signs an extension and gets to remain with the organization, which is what he has mentioned before. Or he could end up walking at season’s end when he’s an unrestricted free agent.
With the salary cap going up and John Tavares a pending UFA as well, many are wondering what general manager Brad Treliving is going to do with two key players that can hit the market. Tavares might be reasonable to keep as he’s not worth the $11 million on his current deal. That alone could free up a lot of money for Marner, but there’s an option that can work for both sides.
And it’s thanks to the Carolina Hurricanes and the recent signing of restricted free agent, Seth Jarvis.
Hurricanes, Jarvis Deferring Salary
Recently, the Hurricanes not only signed one of their key players in Jarvis, but they managed to do it in a unique way where it actually makes sense as it is an option in the Collective Bargaining Agreement.
Jarvis and the Hurricanes came to an agreement on an eight-year deal worth $63.2 million, making his average annual value (AAV) $7.42 million. Initially, his cap hit would’ve been $7.9 million, but he’s making less than what the current cap hit would be. How did this happen? Both sides came to an agreement to defer some of Jarvis’ contract until the end of the deal. At the moment, the Hurricanes save about $480,000 in cap space. CapWages did an in-depth look on the math behind the deferred payments, along with the interest rates, present value and savings. The total amount that will be deferred to Jarvis during the duration of his contract will be $15.67 million. Though the present value will be $11.83 million, a difference of $3.84 million that he will get back at the end of the contract.
This has been done a few times in the NHL. One instance was the Coyotes with Shane Doan’s contract as stated from TSN’s Chris Johnston. A different, but more recent example, is Shohei Ohtani’s contract with the Los Angeles Dodgers. When he signed his $700 million deal, he…
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