Oilers Can Learn Something New From Seth Jarvis Deal

Caleb Kerney

Sep 1, 2024, 13:56

Caleb Kerney

Sep 1, 2024, 13:56

The new Seth Jarvis deal may hold the key for the Edmonton Oilers to retain their "big three."

Bob Frid-USA TODAY Sports - Oilers Can Learn Something New From Seth Jarvis Deal

EDMONTON -- The summer is coming to an end.

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The Edmonton Oilers have been busy this off season. Connor McDavid had his wedding, several players re-signed, a few moved on, and the team hired a new General Manager, Stan Bowman.

A few trades were made too. Cody Ceci was shipped out in favor of taking on the less expensive replacement, Ty Emberson. Ryan McLeod also found himself finding a new home in exchange for Matt Savoie.

However, the biggest piece of business that hasn't happened yet is re-signing superstar Leon Draisaitl. But there was a deal made official earlier today that could hold the key to Draisaitl's next deal.

Carolina Hurricanes and Seth Jarvis have agreed to new contract terms earlier today. Jarvis signed an eight-year $63.2-million extension, which includes a unique bonus structure that will bring down his average annual value (AAV).

This deal features a bonus that will be paid one day after the contract expires. The bonus itself is comprised of salary that is deferred from one (or more) year(s) over the contract's duration. The AAV of the deal is $7.9-million. However, the deferred salary does not count towards the AAV of the deal. That brings Jarvis's deal down to $7.5-million.

Draisaitl's Next Deal Should Look Like Seth Jarvis'

Bowman should be sprinting to his phone to set up deferred compensation for Draisaitl. This kind of contract can help the Oilers on multiple fronts.

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For starters, it decreases their salary cap woes in the immediate future. If the Draisaitl deal lands at $13.5-million for eight years, they could defer $500,000 per year. Then he is on the books for only $13-million, and he would receive a tidy $4-million bonus at the end of his contract.

Secondly, it could set a precedent for both McDavid and Evan Bouchard to follow. Both of those superstars could sign for a number that both camps are happy about, yet defer some salary to bring their AAV's down and effectively "take less" to be on a winning team.

Despite deferring salary being in the CBA since 2005, the Jarvis deal is the first time that it has been used to this extent. Hopefully for the Oilers, they can utilize this structure to retain their core superstars so they can focus on winning a Stanley Cup.

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