With Leon Draisaitl and Connor McDavid, the Edmonton Oilers may want to consider the Seth Jarvis trade in Carolina.
Seth Jarvis signed a long-term contract extension with the Carolina Hurricanes on Saturday, but the agreement is special because it includes a ninth year on an eight-year contract. Over the course of the eight years of his new contract, Jarvis’ cap hit will be reduced by $400K per season thanks to the deferred payment in the ninth year. When the contract ends, it will cost the Hurricanes a significant sum of money.
The agreement gives the Hurricanes additional budget space during his contract, even if it’s unclear exactly how much is being postponed due to a time value of money discount calculation the NHL performs in that ninth year, making it difficult to predict what that payment will be today.
What if Connor McDavid and Leon Draisaitl were willing to play for the Edmonton Oilers in this capacity?
If the Oilers were to employ a deferred payment arrangement, Draisaitl would be their first chance to do so. Draisaitl is expected to sign an eight-year contract with a salary of approximately $14 million each season. Frank Seravalli of Daily Faceoff provided a good illustration of how this may proceed if Draisaitl and the Oilers choose to spread out payment terms over a 40-year period.
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