Quote:
Originally Posted by Strange Brew
Are you referring to AAV? Because I tend to agree, Flames need to beat the competition on the AAV of this deal (assuming they front load as everyone else will). Unlikely Gaudreau is staying here at less AAV than he can get elsewhere IMO.
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Correct, the Flames need to beat the AAV and the term.
Using round numbers for the sake of argument:
7x10= $70m
8x10= $80m
8x11= $88m
The extra year at the same AAV doesn’t matter - he loses half of that to taxes, another 10% to agent fees and escrow, and maybe takes home $4M extra.
The extra year and extra $1m increases the value of the contract by 26%.
Nobody says no to 26% more.