Quote:
Originally Posted by flamefan74
So using their calculator, I tried Draisaitl at $120 mil for 8 years. Oiler fans seem to be wanting his hit to be around $10mil/season. In order to do this based on going a max of 8 years past contract end (year 16), he would have to defer $10mil of the $15 mil/year out to year 16. No way Draisaitl defers $80 of $120 mil to year 16. And would make sense why more players and owners don't do it.
This is assuming I'm understanding it correctly.
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Looks to me like you've got it pretty much right (not having run the exact numbers myself).
Remember that until the post-Covid inflation hit, discount rates were a lot lower. Jarvis's contract gets the Hurricanes an extra $400k of cap space. If they had tried it in 2020, they might have got half that or less. The juice was not worth the squeeze.
I believe that's why we're just starting to see deals like this now. We'll probably go on seeing them as long as inflation risk is priced into interest rates.