Quote:
Originally Posted by indes
The whole "short contract to win" rumour seems dumb to me too. I think I posted it earlier but:
2x16 + 8x18 = 176m, with 144m of risk. Guaranteed 32m.
7x16 + 3x16 = 160m with 48m of risk. Guaranteed 112m.
Who in their right mind would risk 144m (82%) for an extra 10% of earnings? I don't know anything for sure but I highly doubt anyone would advise McDavid to take that kind of risk to play the same hockey. IMO the only way he signs with the Oilers is for 8x16+.
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In your two examples it’s far cheaper to insure the 8x18 which carries only 2 years of injury risk vs the 3x16 at the end which carries 7 years of performance an injury risk. You also can get full max cap the for those 2 years where it would be more difficult to get the full max cap on the 7 or 8. Or if you think he can get max Salary on the long term deal then getting two extra years of cap inflation helps a lot.
You also have the cheater years on the back end of the contract pushing more money forward in time.
An insured two year deal likely maximizes career earnings.