The Edmonton Oilers lately locked up one in every of their cornerstone gamers, Leon Draisaitl, with an eight-year, $112 million contract extension. This deal cements Draisaitl’s future in Edmonton and raises questions on how such contracts may affect future NHL negotiations.
Within the video beneath, Frank Seravalli from Day by day Faceoff joined Ailish Forfar and Justin Cuthbert on The FAN Pregame to debate the intricacies of Draisaitl’s extension and its potential ripple results throughout the league.
The Construction and Timing of Draisaitl’s Contract
Seravalli opened the dialog by shedding gentle on the method behind Draisaitl’s contract. Whereas no vital “fact-finding mission” was concerned, the Oilers and Draisaitl’s camp took two months to finalize the deal. For Draisaitl, the choice wasn’t nearly locking within the {dollars}—it was about understanding the Oilers’ potential to win the Stanley Cup. Coming off a season the place the Oilers reached Recreation 7 of the Stanley Cup Remaining, Seravalli believes that Draisaitl knew that Edmonton was on the cusp of greatness. This context and a profitable provide made it a straightforward resolution for the German star.
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Nonetheless, what stands out about this deal isn’t simply the $112 million complete however the contract’s construction itself. A staggering $104 million of that sum is assured by means of signing bonuses, making the contract one of the vital financially safe offers in NHL historical past. Seravalli famous that the main focus of the negotiations possible revolved round this construction, because the Oilers sought to unfold out their monetary commitments cap-efficiently whereas nonetheless rewarding Draisaitl handsomely.
Will Future NHL Contracts Shift Towards Deferred Cash?
Maybe essentially the most attention-grabbing a part of the dialog got here towards the tip. Seravalli then shifted his evaluation to the broader implications of Draisaitl’s deal, significantly concerning deferred cash in NHL contracts. This idea was lately highlighted in Seth Jarvis‘ distinctive contract, which included deferred wage—a method not generally used within the NHL however one which Seravalli believes might achieve traction.
Deferred cash permits gamers to obtain a portion of their wage at a later date, which might be financially advantageous relying on the funding local weather. Nonetheless, this strategy requires a departure from conventional participant considering, which has been targeted on getting as a lot cash upfront as attainable. For brokers and gamers, the priority is that the worth of a greenback at this time is bigger than the identical quantity acquired years later, given inflation and funding alternatives.
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Seravalli defined that for deferred cash to change into a extra widespread observe, each gamers and groups must embrace this technique. By deferring some wage, gamers might give their groups extra flexibility underneath the wage cap, probably permitting them to construct stronger rosters and enhance their possibilities of successful. Nonetheless, this requires excessive belief within the group’s administration to make use of these financial savings properly. Draisaitl is all-in with the Oilers. He trusts the group and the group.
Contemplating the Way forward for NHL Contracts
Draisaitl’s contract and others prefer it might sign a shift in how NHL contracts are structured. As extra gamers discover themselves in comparable conditions—on a aggressive group with an opportunity to win and negotiating their third main contract—deferred cash might change into a extra widespread instrument in cap administration. This transformation might result in extra contracts closely weighted with signing bonuses or deferred wage, offering monetary safety for gamers and cap flexibility for groups.
Finally, as Seravalli identified, such contracts’ success depends upon gamers’ willingness to undertake new monetary methods and the power of common managers to make use of these financial savings successfully. If accomplished proper, it might be a win-win scenario for each gamers and groups, permitting star gamers like Draisaitl to receives a commission whereas giving their groups the flexibleness wanted to construct a championship-caliber roster.
