The Edmonton Oilers could follow a lead set by the Carolina Hurricanes and consider deferred payments to build a dynasty.

Could the Edmonton Oilers take a page out of the book of the Carolina Hurricanes, saving as much as $10 million per season on the contract extensions for Leon Draisaitl and Connor McDavid? Technically, there's no reason for the Oilers not to look at what the Hurricanes did and sign both to deferred contracts on a much larger scale.

The Hurricanes made waves in the NHL by securing forward Seth Jarvis on an eight-year, $63.2 million contract on Saturday. Utilizing a unique approach with deferred payments, they added a ninth year to his contract, one that will not count against the Hurricanes' salary cap. 

Carolina will owe Jarvis some money after his contract ends and the player will have to wait to get paid some of what he's owed, but both sides seemed happy enough to make the deal. 

The question becomes, will other teams do the same? If any team might be in a solid position to use deferred payments as a way of doing business, it's the Oilers. 

Draisaitl and McDavid Would Be Solid Candidates for Deferred Payment Contracts

Edmonton could benefit from adopting a similar approach as they negotiate new deals with their star players, Leon Draisaitl and Connor McDavid.

There is no cap on the amount teams and players can defer, according to Puck Pedia, which opens the door for innovative contracts that could significantly reduce cap hits. For the Oilers, Draisaitl presents the first opportunity to implement such a strategy as his contract will expire at the end of the 2024-25 season and he's due for a huge raise. 

The expectation is that Draisaitl's new contract will be an eight-year deal worth around $14 million per season. However, by deferring a portion of his salary, the Oilers could reduce the cap hit substantially.

Frank Seravalli of Daily Faceoff proposed a hypothetical scenario where Draisaitl could defer $33.6 million of his contract to be paid out over 40 years after the deal expires. This would result in annual payments of approximately $840,000 from 2033 to 2073. 

It'd be a huge commitment by the Oilers, but the benefits in the short term could be massive. Under this model, Draisaitl would receive $80 million over the first eight years, bringing his cap hit down to around $10 million per year, a significant discount of $4.2 million annually.

Imagine McDavid's deal similarly structured to Draisaitl's. The Oilers could realistically save more than $5 million per season on their cap with McDavid. The combined total savings of the two players would mean nearly $10 million per season not counting against the cap for Edmonton. That could mean multiple players to build depth on the roster or keep players already with the group they might have otherwise had to sacrifice. 

It is important to note that agents and players have known about this mechanism and typically don't want to go this route. Both Draisaitl and McDavid would need to agree to give up millions in the short term for lifelong payments broken up over several years. 

Would Draisaitl and McDavid Consider This?

This approach would require Draisaitl to forgo a substantial portion of his earnings in the short term, and the Oilers would need to commit to paying him for nearly 50 years. However, considering Draisaitl's already substantial career earnings and the Oilers' financial stability, this arrangement could work.

McDavid might be in a similar position. With career earnings already over $102 million by the time he's due for an extension, he's set financially. A new deferred deal would still pay him around $85-$90 million, with another $35 - $40 million coming over nearly four decades. 

Realistically, the Oilers might be willing to pay more to each player over the life of their payments than they would if the organization was to keep all payments within eight-year windows. 

For Edmonton, the benefits of the cap savings are clear. It could be the difference between building a Stanley Cup-contending team around Draisaitl and McDavid or struggling to maintain a competitive roster under a tight cap.