Seth Jarvis signs eight-year contract with the Carolina Hurricanes

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Julien Trekker
August 31, 2024 (11:51)

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The 22-year-old forward Seth Jarvis signed an eight-year contract valued at $63.2 million with the Carolina Hurricanes.

Insider Frank Seravalli was the first to report the news of this interesting deal on X:

Chris Johnston added details, explaining that the Canes cleverly managed to lower Jarvis' cap hit with deferred money.

Indeed, Jarvis' contract will be one of the first in the NHL to have a significantly lower AAV, with a bonus payment set to come a day after the contract expires, on July 1st, 2032.

With the deal, Jarvis is set to earn $7.9M per year but will only count $7.5M against the team's salary cap. The Canes will save around $400k each season.

With the deferred payment set for the ninth year of the eight-season deal, there won't be any cap charge for the Canes.

Such a strategy is allowed in the Collective Bargaining Agreement, but it's believed that the Canes are the first team to use it with this purpose.

They also did something similar with Jaccob Slavin's contract. Reports stated that his deal would have a $6.461M cap hit, but it will be $6.396M. While this isn't a substantial amount, it seems the Canes wanted to test the waters with that deal.

With smaller cap hits, teams can use the saved money to acquire other players, making the team better in the long run.

Don't be surprised if more teams in the NHL decide to use this strategy to save money.
https://x.com/reporterchris/status/1829870193201525068

Source: Daily Faceoff
Sources: Hurricanes and Seth Jarvis agree to $63.2 million contract with unique deferred structure