Confirmed with Link: Seth Jarvis signs 8 year, $63.2m extension ($7.5m aav, 9th year deferred salary and $30m signing bonus)

[moses malone 12]

It's possible that Guentzel just preferred Tampa all along. The lack of income tax is a significant selling point. I wouldn't get too worked up about it. The Canes took their shot and offered market value, but Guentzel wanted to go to Tampa. They pivoted to retaining Necas instead.

whistling past the graveyard my friend. Guentzel took the bag, not an IOU in year 9. I don't love the roster construction this year, mainly due to no Guentzel however Canes are set up really well cap wise beginning next season.

 

[Blueline Bomber]

There's zero evidence this type of contract was offered to Guentzel.

 

[TheReelChuckFletcher]

whistling past the graveyard my friend. Guentzel took the bag, not an IOU in year 9. I don't love the roster construction this year, mainly due to no Guentzel however Canes are set up really well cap wise beginning next season.

There hasn't been any rumors, even in shady corners online, about the Canes offer for Guentzel having any sort of deferred money. I think that my explanation is more accurate to the reality. All things being equal (and all signs point to Carolina's offer being equivalent), Tampa is still very appealing to UFAs because of a mixture of winning (even if it's not as much so today as it was a couple of years ago) and low taxes. I'm not all that bothered by Guentzel choosing that situation over Carolina's.

 

[AhosDatsyukian]

Love it!!

 

[Tryamw]

I love how this deal seems to have collectively broken the rest of the league

Carolina signing people breaks some of the league.

 

[Highest Boss]

just a reminder that Bergevin signed Aho to an offer sheet because he didnt think Tom had $21 million on him

 

[chaz4hockey]

I get what you're saying, but it's a loophole that every GM knew about. The Coyotes used it on Shane Doan's last contract.

The issue isn't whether GMs knows about it. It's about asking players to delay getting paid in order to help the team. Some players are OK with doing that. I imagine many wouldn't be. It's why you're rarely seeing this clause used.

Agreed present value of $3.2 in year 9 is a lot less (particularly in these inflationary times) then getting his money up front.

Btw: I did say a deal would be done by Sept.

 

[NotOpie]

Man, people on the main board gonna need lots of diaper rash cream given all the ass chappin' happening.

 

[ck26]

This is the dumbest social media post I've ever seen for a big free agent signing, but it's got vibes and I'm here for all of them.

 

[Derailed75]

What’s crazy is that Jarvis absolutely left money on the table here. Even if we ignore the delayed payment, if he had signed a shorter deal (say 4-5 years), he definitely would have made more money over the course of his career signing a new deal at 26-27.

True but he left money to play along other guys with long term contracts that are pretty damn good. Knowing you have Aho, Svech, and Slavin on your team for the majority of your contract, knowing your team has a really good promising young goaltender for the majority of your contract and knowing your head coach is signed for most of your contract are pretty big reasons to take a little discount to stay on a good team.

 

[HisIceness]

I will pick up the money left on the table

 

[tomdundo]

I will pick up the money left on the table

I think that's called a "tip". Guess you are new at being a waiter huh?

 

[Tryamw]

I think that's called a "tip". Guess you are new at being a waiter huh?

Well he didn't get his coaching gigs so.. at least he's working

 

[CanesUltimate11]

There hasn't been any rumors, even in shady corners online, about the Canes offer for Guentzel having any sort of deferred money. I think that my explanation is more accurate to the reality. All things being equal (and all signs point to Carolina's offer being equivalent), Tampa is still very appealing to UFAs because of a mixture of winning (even if it's not as much so today as it was a couple of years ago) and low taxes. I'm not all that bothered by Guentzel choosing that situation over Carolina's.

I doubt Tulsky tried to offer this kind of deal to Guentzel, who was in essence a mercenary at that point. That’s not an offer you make to a mercenary, you make it to either the loyalist or the vet with a ton of money already.

 

[Chrispy]

whistling past the graveyard my friend. Guentzel took the bag, not an IOU in year 9. I don't love the roster construction this year, mainly due to no Guentzel however Canes are set up really well cap wise beginning next season.

No, Guentzel took the contract offer from Carolina out to the market and got it matched with lower taxes.

Guentzel said he wanted to stay in Carolina. He also said he wanted to stay in Pittsburgh.

His actions spoke otherwise.

 

[Chrispy]

True but he left money to play along other guys with long term contracts that are pretty damn good. Knowing you have Aho, Svech, and Slavin on your team for the majority of your contract, knowing your team has a really good promising young goaltender for the majority of your contract and knowing your head coach is signed for most of your contract are pretty big reasons to take a little discount to stay on a good team.

And he got 8 years and still has a chance at a UFA contract at 30 when he can get another big contract. 5 years and then 8 vs 8 years now, and then likely at least 5 years at age 30.

And regarding the deferred salary, it can be seen as a tax hedge and also an investment hedge. You don’t need to invest as much on the conservative side when you know you have that deferred payment coming in 8 years.

I did a version of this personally, keeping a (small) pension when many of my former coworkers took a lower lump sum payout into a IRA when we were laid off by a major employer.

 

[HisIceness]

Well he didn't get his coaching gigs so.. at least he's working

Apparently the fans of Florida football are ready for a new coach. How hard can that job be?

 

[TheReelChuckFletcher]

UPDATE: The final contract details have been announced. The official contract has a cap hit of $7.42M per year, but with $15.67M in deferrals, Jarvis will get $63.2M in total dollars. Source is PuckPedia:

https://x.com/i/web/status/1830017157671059779

https://x.com/i/web/status/1830028704648667215

 

[LakeLivin]

Edit: deleted, I didn't read the whole thing I was referencing.

 

[Nikishin Go Boom]

Unless I'm missing something the above two tweets are inconsistent. They say he's deferring more of his signing bonus for years 2 & 7, respectively, than he receives in years 2 & 7.

Present value vs value in the deferred years is the difference. Not a 1 to 1 translation.

 

[QuebeCaniac]

That is how I understand it:

About 3.2 M$ from the SB in year 1 is deferred to 2032 and will be given to Jarvis as a 4,95M$ deferred bonus (to account for the 8 year delay, not sure how interest is calculated). Jarvis will still receive 2M$ salary and 4M$ bonus in year 1, not bad for a player just off his entry level contract.

About 3.4 M$ from the SB in year 2 is deferred to 2032 and will be given to Jarvis as a 4,95M$ deferred bonus (to account for the 7 year delay, not sure how interest is calculated).

Part of the bonus in year 7 is also deferred to 2032.

Does that make sense?

 

[LakeLivin]

Present value vs value in the deferred years is the difference. Not a 1 to 1 translation.

Goddammit, I thought I'd deleted my post before anyone had a chance to point out my error, lol.

That is how I understand it:

About 3.2 M$ from the SB in year 1 is deferred to 2032 and will be given to Jarvis as a 4,95M$ deferred bonus (to account for the 8 year delay, not sure how interest is calculated). Jarvis will still receive 2M$ salary and 4M$ bonus in year 1, not bad for a player just off his entry level contract.

About 3.4 M$ from the SB in year 2 is deferred to 2032 and will be given to Jarvis as a 4,95M$ deferred bonus (to account for the 7 year delay, not sure how interest is calculated).

Part of the bonus in year 7 is also deferred to 2032.

Does that make sense?

My new take: the first tweet doesn't represent what Jarvis will actually receive in each contract year, but for cap purposes each year it does include the calculated value of the amount that will be paid in July 2032 for each respective year it was deferred from (in order to reflect the correct cap hit).

E.g., on a 1 year contract, let's say option 1 is a $2m salary with a $1m SB. Instead, they agree to a $2m salary but defer the SB to the day after the contract expires. They adjust the SB to $1.05m (or whatever the formula is) to make up for the $ lost by not giving him the SB until a year later. So even though the player will receive a total of $3.05m, the cap hit will be $3m, the same as if they didn't defer the SB.

If I'm correct, without knowing the formulas used, you can't really reconcile the amounts across the 2 tweets because you don't know what proportion of the SB has been deferred from a particular year. Of course, I might not be correct, lol.

 

[Nikishin Go Boom]

Goddammit, I thought I'd deleted my post before anyone had a chance to point out my error, lol.



My new take: the first tweet doesn't represent what Jarvis will actually receive in each contract year, but for cap purposes each year it does include the calculated value of the amount that will be paid in July 2032 for each respective year it was deferred from (in order to reflect the correct cap hit).

E.g., on a 1 year contract, let's say option 1 is a $2m salary with a $1m SB. Instead, they agree to a $2m salary but defer the SB to the day after the contract expires. They adjust the SB to $1.05m (or whatever the formula is) to make up for the $ lost by not giving him the SB until a year later. So even though the player will receive a total of $3.05m, the cap hit will be $3m, the same as if they didn't defer the SB.

If I'm correct, without knowing the formulas used, you can't really reconcile the amounts across the 2 tweets because you don't know what proportion of the SB has been deferred from a particular year. Of course, I might not be correct, lol.

Well I can’t be the only one to make a mistake this week

 

[3CanesInTheBox]

 

[Blueline Bomber]

Interesting that we had to defer over $15 million to simply save 500k a year. That’s a lot of money to postpone for a relatively small payoff, and why you’ll rarely see this happen again.

Now if we had multiple players willing to defer their salary, then it starts to add up. Even with just Jarvis and Slavin, we opened up 600k, which is basically a league minimum deal. If we had 5-6 players (say two of our top forwards, two defensemen and a goalie), then we’re talking about adding a solid 3rd liner.