[Signing] Oilers sign Puljujarvi to ELC (3yrs, $3.425mil AAV)

[TheScorpion]

Originally Posted by sureLoss

General Fanager @generalfanager
Jesse Puljujarvi's $3.425M AAV is highest AAV for a #4 overall pick since 2005, $1.04M higher than average.

Because of course it is. The Oilers love referring back to 2005 and giving way too much money to #4.

[Locke]

Correct me if I'm wrong, as I may well be, and far be it for me to indicate the Oilers have once again made idiots of themselves as is their true specialty, but I thought ELCs were more or less standard dollars (~$900K?) and the rest was performance bonuses?

And 2005? That was an entirely different CBA.

[StrykerSteve]

Originally Posted by sureLoss

General Fanager @generalfanager
Jesse Puljujarvi's $3.425M AAV is highest AAV for a #4 overall pick since 2005, $1.04M higher than average.

graph spoilered for size

Spoiler!

Oilers gonna be Oilers.

[burnitdown]

Originally Posted by TheScorpion

Because of course it is. The Oilers love referring back to 2005 and giving way too much money to #4.

I think it's more a reflection of the times. Dubios, Puljujarvi and Tkachuk all set the highest AAV given to their respective draft slots.

[getbak]

Originally Posted by Locke

Correct me if I'm wrong, as I may well be, and far be it for me to indicate the Oilers have once again made idiots of themselves as is their true specialty, but I thought ELCs were more or less standard dollars (~$900K?) and the rest was performance bonuses?

And 2005? That was an entirely different CBA.

The 2005 Draft (Crosby) was the start of the salary cap era. From an ELC perspective, only the maximum dollars on the base salary have changed.



This is how it works:

NHL base salary maximum = $925,000 (up to 10% can be paid as a signing bonus)

AHL salary maximum = $70,000


Schedule "A" bonuses (individual performance relative to other position players on team) = $850,000 total maximum

• "A" bonuses are split into different categories and the player can earn a maximum of 4 individual "A" bonuses worth up to $212,500 each.

Schedule "B" bonuses (for winning a major league award, or finishing top-10 league-wide in the major statistical categories for his position) = $2 million total maximum

• "B" bonuses are individually negotiated and can pay any amount up to $2 million in total.

For all bonuses, the player can be eligible to receive bonuses in all possible categories, but cannot receive more than his negotiated maximum bonuses.

[topfiverecords]

Poor guy was miserable he got drafted by Edmonton, they had to give him something to make him less miserable.

[T@T]

Not a whole lot different then Sam Bennetts contract.

[DJones]

Could someone explain to me how the bonuses effect the salary cap?

http://www.spotrac.com/nhl/edmonton-oilers/cap/

I use Sportrac mostly, but it says McDavid's cap hit is still the $925,000. Do bonuses not effect the cap hit?

[Locke]

Originally Posted by DJones

Could someone explain to me how the bonuses effect the salary cap?

http://www.spotrac.com/nhl/edmonton-oilers/cap/

I use Sportrac mostly, but it says McDavid's cap hit is still the $925,000. Do bonuses not effect the cap hit?

I think they affect the cap hit in the subsequent year.

For instance the Blackhawks got boned after they won the cup because Toews and Kane both hit all their bonuses.

Similar to Boston who had to carry Iginla's bonus penalties the year after he played for them.

[getbak]

Originally Posted by DJones

Could someone explain to me how the bonuses effect the salary cap?

http://www.spotrac.com/nhl/edmonton-oilers/cap/

I use Sportrac mostly, but it says McDavid's cap hit is still the $925,000. Do bonuses not effect the cap hit?

All bonuses count against the cap, but the CBA allows for a "bonus cushion" where teams can exceed the cap by up to 7.5% to cover any unpaid bonuses that players are still eligible to receive.

Because of that, the various sites that track the team payrolls tend to just ignore the potential bonuses on players' contracts.


That can be problematic though, because some teams have so many entry-level players that their total potential bonus amount exceeds the 7.5% cushion.

For next season, the cap is $73 million. This means the bonus cushion is $5.475 million. With Draisaitl ($2.475M), McDavid ($2.85M), and Nurse ($850,000), the Oilers already exceed the bonus cushion by $700,000 ($6.175M total in bonuses between those three). If Puljujarvi or Reinhart (who has $2.35M in bonuses on his contract) make the Oilers this fall, their full contract values with bonuses will count against the Oilers' cap.

[Locke]

That is a much better explanation than mine.

[Finger Cookin]

Originally Posted by getbak

All bonuses count against the cap, but the CBA allows for a "bonus cushion" where teams can exceed the cap by up to 7.5% to cover any unpaid bonuses that players are still eligible to receive.

Because of that, the various sites that track the team payrolls tend to just ignore the potential bonuses on players' contracts.


That can be problematic though, because some teams have so many entry-level players that their total potential bonus amount exceeds the 7.5% cushion.

For next season, the cap is $73 million. This means the bonus cushion is $5.475 million. With Draisaitl ($2.475M), McDavid ($2.85M), and Nurse ($850,000), the Oilers already exceed the bonus cushion by $700,000 ($6.175M total in bonuses between those three). If Puljujarvi or Reinhart (who has $2.35M in bonuses on his contract) make the Oilers this fall, their full contract values with bonuses will count against the Oilers' cap.

It's unknown whether the bonuses are earned or not until the conclusion of the regular season though, right?

[getbak]

Originally Posted by Locke

That is a much better explanation than mine.

But you did bring up something I forgot to mention.

At the end of every season, the actual amount of bonuses paid out is calculated and if it causes the team to exceed the cap for the season that has just ended, the excess money will be taken from the team's cap for the following season.

That will hurt Chicago this season because Panarin earned some big bonuses for finishing top-10 in forwards points last season.

As mentioned, it also hit Chicago when Toews won the Conn Smythe in the final year of his ELC and Boston paid for it when they gave Iggy huge performance bonuses on his one-year deal.


It could have been an issue for the Flames this season too because of Johnny's bonuses, but the team wasn't in cap trouble, so they had room for the bonuses under the cap.

[getbak]

Originally Posted by Finger Cookin

It's unknown whether the bonuses are earned or not until the conclusion of the regular season though, right?

Correct. The team has to carry that cap hit all season even if it's obvious five games into the season that there's no chance that Griffin Reinhart will win the Norris Trophy or finish top-10 in defence scoring.

[polak]

Still livid the Oilers got him. I think he'll haunt us.

[Finger Cookin]

Originally Posted by getbak

Correct. The team has to carry that cap hit all season even if it's obvious five games into the season that there's no chance that Griffin Reinhart will win the Norris Trophy or finish top-10 in defence scoring.

Thanks for clarifying. I thought it was the opposite, that they only carry the salary cap hit all season and then if the bonuses are earned they get dinged the following season.

[Robbob]

The Oilers brass probably only had the template for first overalls and just ran with it.

[DJones]

Originally Posted by getbak

All bonuses count against the cap, but the CBA allows for a "bonus cushion" where teams can exceed the cap by up to 7.5% to cover any unpaid bonuses that players are still eligible to receive.

Because of that, the various sites that track the team payrolls tend to just ignore the potential bonuses on players' contracts.


That can be problematic though, because some teams have so many entry-level players that their total potential bonus amount exceeds the 7.5% cushion.

For next season, the cap is $73 million. This means the bonus cushion is $5.475 million. With Draisaitl ($2.475M), McDavid ($2.85M), and Nurse ($850,000), the Oilers already exceed the bonus cushion by $700,000 ($6.175M total in bonuses between those three). If Puljujarvi or Reinhart (who has $2.35M in bonuses on his contract) make the Oilers this fall, their full contract values with bonuses will count against the Oilers' cap.

Thanks, I've been wrong for years haha

[monkeyman]

Originally Posted by polak

Still livid the Oilers got him. I think he'll haunt us.

I get that, but had it played out any other way I doubt we end up with Tkachuk and i'm ecstatic we ended up with him. I think Tkachuk is going to haut the Oilers and Canucks for years as well.

[Draug]

Originally Posted by getbak

But you did bring up something I forgot to mention.

At the end of every season, the actual amount of bonuses paid out is calculated and if it causes the team to exceed the cap for the season that has just ended, the excess money will be taken from the team's cap for the following season.

....

It could have been an issue for the Flames this season too because of Johnny's bonuses, but the team wasn't in cap trouble, so they had room for the bonuses under the cap.

So in the Flames case, because we were able to fit Johnny's bonuses into the cap of the current season, none of his bonus cap hits carry over to next season? I understand that correctly?

That's a big advantage of leaving a bit of cap room to cover bonuses so that you aren't paying in the next year when you are one step closer to being rebuilt. The Oilers have it all wrong; they'll be paying cap room for bonuses when they really need to be signing veterans to complete the rebuild (if they ever get there).