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How the Oilers could use creative contracts to save cap space for Leon Draisaitl's extension

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Marvin Azrak
September 1, 2024  (10:29 PM)
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Leon Draisaitl, Edmonton Oilers
Photo credit: Oil on Whyte

Edmonton Oilers fans, here's something to think about: Seth Jarvis just signed with the Carolina Hurricanes. Jarvis's 8-year contract is worth $63.2 million, but it only counts for $7.5 million per year against the salary cap.

The remaining $3.2 million comes as a "signing bonus" that's paid out after the contract ends, meaning it will hit the Hurricanes' books in the 2033-34 season.

The kind of deal, with a deferred salary structure, isn't something you see often in the NHL. Yet Jarvis's contract could be paving the way for more teams to explore this option.

In Edmonton, we all know Leon Draisaitl's contract is coming up, and there's talk he could be looking at something around $14 million per season.

However, the NHL is a copycat league so Edmonton can push some of the money to later years, the Oilers could lower his cap hit by up to $1.5 million per year, which would be huge for Edmonton especially with the salary cap always being tight.

GM Stan Bowman can also push for deferral with Connor McDavid, who's also due for an extension and will be a free agent in two years.

That extra room could be used to bring in more talent and keep them in the Stanley Cup conversation long-term.

This kind of contract could be a game changer, especially for teams trying to maximize their chances while their star players are in their prime. If the Oilers want to keep their core intact and stay competitive for the long haul, a deferred salary strategy could be the smart move for their two franchise cornerstones.

Source: Oilers DailyNew NHL contract formula may be used next on Leon Draisaitl extension with the Edmonton Oilers

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How the Oilers could use creative contracts to save cap space for Leon Draisaitl's extension

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