[Signing] Ducks re-sign Frank Vatrano (3 years, $4.57m AAV, deferred salary)

[devo22]

notable for the weird structure. Some might call this, you know, cap and/or tax circumvention, but what do I know ... certainly never seen anything like this in the NHL.

https://twitter.com/user/status/1875994285079753199

[Funkhouser]

Interesting. May be a way to entice more American players up to Canada.

[Canada 02]

attended Flames development camp way back; college UFA who made a solid career out of nothing

[All In Good Time]

At least the AAV = Total $ / Playing years

[Paulie Walnuts]

Cap circumvention and tax evasion all in 1 contract. Nice.

[Jiri Hrdina]

Does that mean during the period when the deferred payments are beinng made, the Ducks will have a cap hit for that portion?

[Enoch Root]

Originally Posted by All In Good Time

At least the AAV = Total $ / Playing years

No it doesn't. $18M for 3 years but the AAV is $4.57M

The league will almost certainly kybosh these in the next CBA - you can't allow deals like this if you want to have a hard cap.

[ComixZone]

Originally Posted by Jiri Hrdina

Does that mean during the period when the deferred payments are beinng made, the Ducks will have a cap hit for that portion?

You’d have to think so, right?

Which means the Ducks just picked up a $900K cap-hit between 2035 and 2045…?

[Enoch Root]

Originally Posted by Jiri Hrdina

Does that mean during the period when the deferred payments are beinng made, the Ducks will have a cap hit for that portion?

Pretty sure the answer to that is no.

If they did, then no problem (other than the fact that it then breaks the 8 year limit)

[Paulie Walnuts]

No I don’t think they get charged the cap. That would make it a 13 year deal and almost 2 separate contracts.

Another agenda item for the 26 lockout.

[All In Good Time]

Originally Posted by Enoch Root

No it doesn't. $18M for 3 years but the AAV is $4.57M

The league will almost certainly kybosh these in the next CBA - you can't allow deals like this if you want to have a hard cap.

Oh!
I was going by the AAV in the title of the thread. It said 6M

I see now, yeah, another load of crap contract

[ComixZone]

Originally Posted by Paulie Walnuts

No I don’t think they get charged the cap. That would make it a 13 year deal and almost 2 separate contracts.

Another agenda item for the 26 lockout.

If this were the case, why haven’t teams like Toronto/Tampa etc. been handing out deferred contracts with 10+ years of deferred salary to circumvent the cap-ceiling?

…the $900K/year for 10 years has to count against the cap, otherwise the salary cap isn’t a cap at all.

[Enoch Root]

Originally Posted by All In Good Time

Oh!
I was going by the AAV in the title of the thread. It said 6M

Yeah the title needs to be changed - the AAV is $4.57M with cap circumvention

[The Cobra]

Because of the deferred value of the contract, there is no cap circumvention here.

The present day value of the contract equates to the cap hit.

The contract is not in reality worth $18M to Vatrano.

[Paulie Walnuts]

Originally Posted by ComixZone

If this were the case, why haven’t teams like Toronto/Tampa etc. been handing out deferred contracts with 10+ years of deferred salary to circumvent the cap-ceiling?

Florida has no state income tax I believe.

Don’t know about Toronto.

Like it was mentioned before this is likely killed in the next CBA.

[Enoch Root]

Originally Posted by ComixZone

If this were the case, why haven’t teams like Toronto/Tampa etc. been handing out deferred contracts with 10+ years of deferred salary to circumvent the cap-ceiling?

I think everyone is just assuming they wouldn't be allowed.

If allowed, you can just keep perpetually rolling your cap problems forward. It would make the cap meaningless. It either has to be kyboshed in teh next CBA, or the cap is dead.

[Paulie Walnuts]

Originally Posted by Enoch Root

Yeah the title needs to be changed - the AAV is $4.57M with cap circumvention

And tax evasion.

[Weitz]

Originally Posted by Enoch Root

No it doesn't. $18M for 3 years but the AAV is $4.57M

The league will almost certainly kybosh these in the next CBA - you can't allow deals like this if you want to have a hard cap.

Doubt it. Players and owners probably like the option even though it’s not popular (3 or 4 deals only I think).

What would the league give to the players to get rid of it?

[sureLoss]

Originally Posted by ComixZone

If this were the case, why haven’t teams like Toronto/Tampa etc. been handing out deferred contracts with 10+ years of deferred salary to circumvent the cap-ceiling?

…the $900K/year for 10 years has to count against the cap, otherwise the salary cap isn’t a cap at all.

Because typically most players want their money now. Not in 10+ years.

It doesn't count against the cap, because the player is still getting paid at an AAV of $4.57 million per year.

The deferred salary is basically the player loaning back the money he was supposed to be paid back to the club and club agreeing to pay the deferred salary plus interest at a later date.

[All In Good Time]

Soon there will be $200M, 29 year contracts with an AAV of 63 cents because….. you know…. Inflation
And
We can pinpoint “ future value “ so accurately