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8-year contract: Seth Jarvis will have a cap hit lower than his typical annual salary

 Auteur: esmith
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8-year contract: Seth Jarvis will have a cap hit lower than his typical annual salary
Credit: Getty Images

This morning, the Hurricanes agreed to terms with Seth Jarvis on an eight-year, $63.2 million contract. That’s a lot of money for a youngster who scored 33 goals and 67 points last year.

He’s clearly in Raleigh’s plans for the future.

That said, even if the contract seems close to a typical 8 x 8, make no mistake: we’re talking about a contract that’s pretty special.

In fact, what you need to know is that such a pact would normally give Jarvis an average annual salary of $7.9 million. In this case, however, that won’t be the case.

The reason? Jarvis imitated Shohei Ohtani and agreed to take payments beyond the end of the contract.

According to Frank Seravalli, instead of $7.9 million per year, the Jarvis pact will have a cap hit of around $7.5 million per year. It’s not a huge difference… but it’s not insignificant either.

And when it comes to taking money at the end of the contract, Jarvis will get the remaining money on July 1, 2032, one day after the end of the pact, in the form of a signing bonus. He won’t have to wait 40 years to collect his full $63.2 million.

Last winter, Shohei Ohtani shocked the baseball world with the structure of his contract. The Japanese, who signed a 10-year, $700-million pact, will actually receive only $20 million over the next 10 years, with the remaining $680 million to be paid over the following 10 years.

This was intended to give the Dodgers some leeway to surround him properly and help him win championships.

Jarvis, who hasn’t gone as extreme as Ohtani (who can afford to, considering the tens of millions of dollars he pockets in sponsorships), has used the same principle. It gives the Hurricanes a bit of wiggle room… and in his case, he’ll only have to wait one day after the end of his pact to collect the remaining money.

And I imagine that today, some NHL GMs have been chatting with their team owner to see if they too could do the same. Bravo to Tom Dundon and the Hurricanes for daring.

In Overtime

– Oliver Kapanen continues to shine. He scored a goal and an assist in his team’s loss today.

– Max Domi pays tribute to the Gaudreau brothers.

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