James Guillory-USA TODAY Sports
The Carolina Hurricanes made headlines on Saturday by signing Seth Jarvis to an eight-year, $63.2-million contract.
It was how Jarvis’ contract was structured that raised eyebrows. Instead of having an average annual value of $7.9 million, the 22-year-old Hurricanes winger agreed to defer salary, lowering the average annual value to just over $7.42 million as per PuckPedia. Jarvis will receive the deferred money on July 1, 2032, one day after his contract expires.
TSN’s Chris Johnston reported deferred payments have been part of the NHL’s collective bargaining agreement since 2005. He indicated it’s seldom used because players typically prefer to get as much money upfront as possible.
The Hockey News’ Ryan Henkel wondered if the Hurricanes have discovered the latest NHL salary-cap loophole, although Jaccob Slavin also had a deferred payment.
It’ll be interesting to see what effect the Jarvis contract could have on current contract negotiations involving this summer’s remaining notable RFAs.
Among them are Detroit Red Wings defenseman Moritz Seider and winger Lucas Raymond. Detroit Hockey Now’s Kevin Allen wondered how Jarvis’ deal might affect the Wings’ negotiations with Raymond. Both players had comparable stats last season.
Others include Boston Bruins goaltender Jeremy Swayman, Winnipeg Jets center Cole Perfetti and New Jersey Devils forward Dawson Mercer.
Negotiations with those RFAs might be too far along for one of those clubs to propose deferred salary if they haven’t done so already.
The Jarvis contract could have the most immediate impact on next summer’s UFA superstars, such as Edmonton Oilers center Leon Draisaitl, Toronto Maple Leafs winger Mitch Marner and Vancouver Canucks winger Brock Boeser.
Those three will seek hefty raises on their next contracts, especially Draisaitl. He’s concluding an eight-year deal with a cap hit of $8.5 million that is well below his true worth.
Related: Could the Oilers Use Deferred Payments to Lower the Cap Hits for Draisaitl and McDavid?
Some observers anticipate the AAV on Draisaitl’s next contract will exceed Maple Leafs captain Auston Matthews’ league-leading $13.25 million. Daily Faceoff’s Frank Seravalli wondered if the Oilers could try to convince him to defer part of his salary to garner a lower cap long-term cap hit.
Related: NHL’s Top Issues Facing the Detroit Red Wings: Raymond and Seider’s New Contracts, Consistency and Goaltending Picture
Related: NHL’s Top Issues Facing The Boston Bruins: Swayman, the Lindholm and Young Forwards
Related: NHL Rumor Roundup: The Latest On Linus Ullmark, Nikolaj Ehlers, the Oilers and Flames
News Summary:
- Will Seth Jarvis' New Contract With the Hurricanes Affect Other NHL Free Agents?
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