“We ensure our clients in this climate understand the importance of not only their average annual salary on a longer term contract but the structure of the contract. In the past we would insist on front-loaded contracts. This is attractive due to the time value of money, but also due to the fact that you can reduce the dollar exposure in the event of a buyout. There is a misconception that all NHL contracts are guaranteed, but the fact is that teams can buyout player contracts under the CBA and so getting more money out earlier helps in this regard.”
Scott added that the goal, in part, is to backload contracts while also keeping an eye on signing bonuses.
“In this free agency period, we are focusing on structuring contracts that minimize the salary in the higher escrow seasons which means we are seeking to back-load contracts to save dollars,” Scott said. “At the same time we are looking to add signing bonus protection due to the fact that these are not susceptible to a buyout.”