Yeh you’d think it’d have already been done by now. I guess Tulsky is known as a bit of a wizard in this dept though, maybe he’s one of the rare GMs in this League actually earning his salary.
Good thing the Canes stepped up and did it first then. Would give Bettman pause to screw with one of his southern experiments.
Assume at minimum a team would have to show a league minimum contract on the books. What I wonder about will be the league eventually legislating some sort of range within the vehicle. Same as was stated with over term deals to shave cap aav with added years star players were never going to play.
I wonder if anyone knows for sure except the bean counters at the league (maybe not even all GMs), but if it goes to a ludicrous place the league can always just disallow it like they did with the Kovalchuck deal
So if you do it on both you’re talking 2-3M, that’s a sizeable advantage, I can’t see everyone just saying oh yeah no problem go right ahead.I don't see this being the case here. We are not talking about massive reductions. Maybe $1-1.5M for a guy like Leon or McDavid. Probably less. But three million could be huge for the team.
That said you can still do "sooner the better" at the same time using front loading and signing bonuses.
@Soundwave also gave an added incentive. Think of this as a very very lucrative RRSP.
He did not actually calculate this accurately either. But I agree a 40 year deferral is incredibly unrealistic.
I’m really confused how this is a) allowed and if it is b) why no team has ever done this before?
Its different. Those long deals typically had very low salary years tagged on that the player may never have played to artificially reduce the cap hit. Hence money would be paid to a player that was never accounted for in the cap calculation. For these deals all money paid is actually accounted for in the cap hit. It is just that the player defers some of the money which is discounted to its present value. (See my post #898 for a simple example.)
I am not sure it is all that different. Ohtani's deal is just very extreme. He has deferred almost all of his money and has spread out the payments over ten years. He gets $68M per year for the period of 2034-2043. The MLB uses a discount rate of 5%. So each year the Dodgers effectively have to put aside $41.7M to fund the payment 10 years down the road.
Tyson Barrie's house is way nicer If you have an extra 2.4 million lying around.
Does it have a cool hostage situation back story though?
This is from Bob McKenzie's article:
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?
