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NHL insider Frank Seravalli has generated a discussion about how the Edmonton Oilers might handle Leon Draisaitl's contract extension. He suggests using deferred payments, a tactic more common in other sports like baseball.
Deferred payments mean a part of the salary is paid out after the contract ends. That way, players receive a lower average annual value during the contract but get the full amount eventually. Essentially, players agree to delay some of their earnings to the future.
Seravalli points out the Carolina Hurricanes’ recent contract with Seth Jarvis as an example. Jarvis signed an eight-year, $63.2 million deal, with a part of his salary deferred. Instead of a typical cap hit of $7.9 million, Jarvis’ cap hit is $7.5 million annually due to a signing bonus paid after the contract ends, which gives the Hurricanes extra cap space.
Following this model, Seravalli suggests that Draisaitl could negotiate a similar deal with the Oilers. If Draisaitl signs an eight-year, $113.6 million deal with some salary deferred, his cap hit would drop significantly. For example, deferring $33.6 million over 40 years could lower his annual cap hit from $14.2 million to around $10 million, which would help the Oilers manage their salary cap better.
This approach could be useful for the Oilers, who are dealing with salary cap issues due to the COVID-19 pandemic. As the cap increases, teams need creative ways to keep top players while managing budgets. Deferred payments might be a solution.
Although deferred payments are rare in the NHL, they are more common in MLB. For instance, Shohei Ohtani's deal with the Los Angeles Dodgers includes a large deferred component. If Draisaitl and the Oilers use this model, it might change how NHL contracts are structured in the future.
Seravalli’s idea could be a big step for both players and teams, offering a new way to handle hockey contracts.
Edmonton Oilers' season depends on goalie Stuart Skinner's performance
Stuart Skinner, the Edmonton Oilers' young goalie, made solid progress in his third NHL season. He played 59 games, earning 36 wins, with a .905 save percentage and a 2.62 goals-against average. His long and mid-range shot performances were strong, but he struggled more with high-danger shots, saving 80.6%.
Despite some criticism, Skinner helped the Oilers reach the Stanley Cup Finals for the first time since 2006. He helped the team win the crucial Games 5 and 6 when the pressure was high. At 25, he continues to develop, and the Edmonton Oilers remain confident in his abilities.
