Carolina Hurricanes sign Seth Jarvis to monstrous contract

Here's an interesting deal that was first reported by hockey insider Frank Seravalli via X.

Another insider Chris Johnston added that the Hurricanes smartly lowered Jarvis' cap hit by including deferred payments. Most impressively, though, Jarvis' deal is one of the first contracts in the NHL to include an AAV that is considerably lower than the contract's year-to-year value because of a bonus payment on July 1st, 2032, which is the day after the contract expires. While Seth Jarvis will collect a salary of $7.9 million per year, just $7.5 million will go against the Hurricanes salary cap, saving them an estimated $400,000 per season.

Because the deferred payment is scheduled for the ninth year of the eight-year agreement, there is no cap hit for the Hurricanes in that final year. The strategy is acceptable according to the Collective Bargaining Agreement, but it seems the Hurricanes are one of the first to utilize it this way.

The Carolina Hurricanes have excelled in this practice, as well. Jaccob Slavin's contract was reported as a $6.461 million cap hit, but it's actually going to be $6.396 million. The savings are minor, but it seems like the team is trying to see if this new strategy might work.

By lowering cap hits, it enables a team to use the savings to bring in more talent and add depth to rosters over time. It wouldn't be out of the question that more NHL franchises went that route, managing cap space more effectively. It will be interesting to see if this becomes an issue that gets discussed over the next CBA discussions.

Source:
Frank Seravalli on X