Ivan Demidov’s Contract: The Other Benefit of Signing Early

Charles-Alexis Brisebois
Ivan Demidov’s Contract: The Other Benefit of Signing Early
Credit: Jonathan Kozub/NHLI via Getty Images

Ivan Demidov wants to sign a long-term contract with the Canadiens soon. Kent Hughes has the same goal.

Does that mean it's definitely going to happen soon? No, that's definitely not what it means. The case of Lane Hutson is proof of that.

But it does mean that right now, everyone is acting in good faith.

Obviously, Demidov wants to sign because he loves the Habs, because he doesn't want his contract to become a distraction (as was the case with Hutson), and because he wants to win here.

But we also know that signing this summer would give him the chance to secure an eight-year contract, which won't be an option on the table in a few months. That's a pretty well-publicized advantage.

That said, Nicolas Cloutier (TVA Sports) is right to point out that there's another factor that makes it advantageous for the Russian to sign before September 16.

What is it? Signing bonuses.

Contracts in the NHL in recent years are very often signed with bonuses. Why? Because players would rather have the money now than in the future.

When you get your money sooner, you can invest or spend it faster. Lane Hutson, for example, will have $11 million in bonuses this summer: it's a pretty tempting structure.

That same Hutson has nearly 80% of his contract paid out in bonuses, which was a key factor in the negotiations. But starting September 16, the limit will be 60%. And an amount X today is worth more than that same amount paid out in the future.

Signing a seven-year deal with fewer bonuses wouldn't give Demidov the opportunity to secure such a large sum in today's value. That's also a good reason for his desire to sign quickly.

As Arpon Basu (The Athletic) noted, Demidov will face pressure not to sign an overly large contract, as his teammates from the first power-play wave did.

Having good bonuses can make up for that. And that could ultimately put millions of dollars more in his pocket if he invests his money wisely.


In a nutshell

– Enjoy the listen.

– Interesting.

– Wow.

– Stay tuned.

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