Fourier
Registered User
Wow! Fantastic find. The Oilers should be all over this with both McDavid and Leon. Maybe this is even being considered.
Rumor: Rumors & Proposals Thread | Broberg, Holloway and Ceci are Gone, Do We Add Another D Before Camp?
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Wow! Fantastic find. The Oilers should be all over this with both McDavid and Leon. Maybe this is even being considered.
McDrai
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I bet the league rejects our Drai signing after trying this “Carolina” method and we are forced to give up compensation in the form of a draft pick.
Fixed to Ruin
Come wit it now!
... That somehow goes to the Flames
Fourier
Registered User
Well I am sure that the League would be involved in the conversation. If the CBA explicitly permits deferrals like this it is only a question of how far you can go. If the deferral is upfront and the league is consulted I don't see how they can later determine it to be circumvention. They could reject the contract of course. But there should be no penalty.
Mr Positive
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It makes sense to defer at least some of the cap hit. When McDavid and Draisaitl age out we are crashing and burning anyway
Because you don’t trust coaches who get paid millions and know more about the team than anyone else and who depend on certain players to do the needed so they don’t get fired. Minutes on the ice is an undervalued stat to compare players on the same team. I think an evaluation could be made using traded guys as a form of mathematical analysis.
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Mr Positive
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I totally agree about the time on ice stat. To me that is the most underrated stat, and a measure of coach's trust. On a bad team a player might have some very poor stats but if they have a high TOI then that player is a good bet to flip their stats into the positive in a hurry if the team as a whole turns it around
Jimmi McJenkins
Sometimes miracles
Maybe, but like if a team says they'll pay a player $10M over the following 10 years, that's a major commitment by the owner
brentashton
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The article suggests they already vetted the basic terms with the NHL who were in agreement that it would be registrable.
Fourier
Registered User
And unlike the old front loaded contracts there is no option for future shenanigans so I don't see why they would do anything after it is registered.
Fourier
Registered User
Bouch may be a tougher sale. He does not yet have the big bank account that Leon would so he may be more reluctant to take a lot of deferred money. But if he'd go for it it could well be a smart move for the Oilers.
Can Leon friggin sign? I won’t lie lol I’m getting a little nervous
Hold your horses. The Seth Jarvis contract has serious implications, the Oilers could be very lucky they didn't rush like idiots to sign early like we did with Nurse for no reason.
Nathan MacKinnon did not sign until September 20th of the year he was signed in, our front office should totally be looking at that deferred salary structure.
OilerTyler
Disgruntled
From his instagram it seems like he is still in Europe. I wouldn't expect a contract until he is in Edmonton.
I won't get worried unless he isn't signed by the season opener.
It looks like Connor is in Germany too, and oddly so is Auston Matthews, lol.
Maybe Leon is showing them around.
McShogun99
Registered User
Start the Matthews to Edmonton rumors.
TheNumber4
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KCC
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Auston and Connor are skating with the local Red Bull DEL team. It’s strange but who knows. It’s good for matthews though I think. With him taking the captaincy, him being around Mcdavid is a good thing.
Didn’t stop the league from fining the devils for the kovalchuk contract.
This is from Bob McKenzie's article:
www.dailyfaceoff.com
What if Draisaitl was hypothetically willing to defer $33.6 million of that contract to be paid out over the 40 years after the deal expires? That would be approximately $840,000 per year from 2033 until 2073, and yes, we’re talking a Bobby Bonilla-type contract. That would pay Draisaitl $80 million over the first eight years of the deal, hypothetically making for a cap hit in the neighborhood of $10 million per year – or a discount of $4.2 million per year of the deal.
That isn’t exactly how the calculation or the math works, but the numbers are round and it’s easy to grasp and understand. Draisaitl has already earned north of $70 million in his career. To bring in another $80 million over the first eight years of the next deal makes him more than financially secure for future generations of Draisaitls – and the deferred $33.6 million, which is accruing interest the entire time, is not just gravy but also idiot-proof savings.
Now I don't know if Drai would accept something that extreme, lol, but what about $112 million with $20 million deferred?
Sources: Hurricanes and Seth Jarvis agree to $63.2 million contract with unique deferred structure
The Carolina Hurricanes and restricted free agent Seth Jarvis have agreed to terms on a new eight-year, $63.2 million contract,...
www.dailyfaceoff.com
What if Draisaitl was hypothetically willing to defer $33.6 million of that contract to be paid out over the 40 years after the deal expires? That would be approximately $840,000 per year from 2033 until 2073, and yes, we’re talking a Bobby Bonilla-type contract. That would pay Draisaitl $80 million over the first eight years of the deal, hypothetically making for a cap hit in the neighborhood of $10 million per year – or a discount of $4.2 million per year of the deal.
That isn’t exactly how the calculation or the math works, but the numbers are round and it’s easy to grasp and understand. Draisaitl has already earned north of $70 million in his career. To bring in another $80 million over the first eight years of the next deal makes him more than financially secure for future generations of Draisaitls – and the deferred $33.6 million, which is accruing interest the entire time, is not just gravy but also idiot-proof savings.
Now I don't know if Drai would accept something that extreme, lol, but what about $112 million with $20 million deferred?
Um, flawed argument. Teams that have won championships use analytics in their coaching decisions. John Cooper, for example, says he gets analytical reports before and after every game and uses it to make coaching decisions and matchup decisions. Cassidy has been a proponent of analytics of a long time- hell, he changed the system Boston used to play and lowered shot volume in favour of shot quality and location based on his team analytics. Same with Colorado. Most winning coaches use an all encompassing methodology. Didnt KK mention something to this effect this season as well?
Fourier
Registered User
That was different though. The issue with the Kovalchuk deal is that there were tag on years designed ti lower the cap hit that the player would probably never play. In the deferrals all money is paid and hence all money is actually counted against the cap. It is just that by deferral the team is only charged the present value of the deferred money which would be less.
This won't be precise but rather just for illustration. Lets say that Player A was going to sign an 8 year $10M deal with each year at $10. Assume that in each year of the contract $1M was deferred for 8 years at teh current US discount rate of 5.5%. That would see the player receive $1M in deferred money in years 9 through 16. But the present value of each of those payments would be discounted to $650K.
In this case the player would receive $9M for the first 8 years and $1M for the next. But the cap hit would be $9M + present value = $9M + $650K = $9.65M reducing the cap hit by $350K. For a guy like Draisaitl they could pay him $14M and defer say $5M per year reducing the cap to $12.25M. Similarly with McDavid.
Tulsky is such a good GM.
This would better for Draisaitl because I assume the "deferred salary" would be treated the same as a signing bonus- i.e- you pay taxes on that based on your permanent residence- in Leon's case- Germany.
bellagiobob
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