The Toronto Maple Leafs and Mitch Marner are once again in a contract negotiation that continues to have an unknown ending. It could be one where Marner signs an extension and gets to remain with the organization, which is what he has mentioned before. Or he could end up walking at season’s end when he’s an unrestricted free agent.
With the salary cap going up and John Tavares a pending UFA as well, many are wondering what general manager Brad Treliving is going to do with two key players that can hit the market. Tavares might be reasonable to keep as he’s not worth the $11 million on his current deal. That alone could free up a lot of money for Marner, but there’s an option that can work for both sides.
And it’s thanks to the Carolina Hurricanes and the recent signing of restricted free agent, Seth Jarvis.
Hurricanes, Jarvis Deferring Salary
Recently, the Hurricanes not only signed one of their key players in Jarvis, but they managed to do it in a unique way where it actually makes sense as it is an option in the Collective Bargaining Agreement.
Jarvis and the Hurricanes came to an agreement on an eight-year deal worth $63.2 million, making his average annual value (AAV) $7.42 million. Initially, his cap hit would’ve been $7.9 million, but he’s making less than what the current cap hit would be. How did this happen? Both sides came to an agreement to defer some of Jarvis’ contract until the end of the deal. At the moment, the Hurricanes save about $480,000 in cap space. CapWages did an in-depth look on the math behind the deferred payments, along with the interest rates, present value and savings. The total amount that will be deferred to Jarvis during the duration of his contract will be $15.67 million. Though the present value will be $11.83 million, a difference of $3.84 million that he will get back at the end of the contract.
This has been done a few times in the NHL. One instance was the Coyotes with Shane Doan’s contract as stated from TSN’s Chris Johnston. A different, but more recent example, is Shohei Ohtani’s contract with the Los Angeles Dodgers. When he signed his $700 million deal, he deferred $68 million of his $70 million salary each season during his current contract, meaning he would only make $2 million per season. Ohtani will begin to earn the deferred money, a total of $680 million, from 2034 to 2043.
Related: More Toronto Maple Leafs Season Preview Articles
Jarvis has already established himself as one of the top wingers after a breakout season where he finished with 67 points in 81 games. Now, he’s locked in at a friendly contract thanks to the deferred payments. It is definitely a different way of handing out contracts as it lowers the current cap hit of a contract, which could be beneficial to NHL teams where there’s a hard cap in place to explore other options and help general managers and teams. This includes Treliving and the Maple Leafs.
Maple Leafs Could Use Option With Marner
While this was an unorthodox way of dealing with a contract, it’s definitely one that could pave the way for other general managers to use when dealing with negotiations. If there’s a mutual agreement on both sides, it’s definitely something that could be a framework for Marner’s new deal.
Marner– who had 85 points in 69 games last season– has been very productive with the Maple Leafs since being drafted in 2015 and is in the last year of his deal that’s worth $10.903 million. If you were to look at what he could make with his current deal, many aren’t too keen on seeing him get an increase. He’s been a constant threat offensively in all situations as he has eclipsed the 90-point mark in two of the last three seasons, but he hasn’t had the best results in the playoffs as of late. Regardless of his production, he’s going to get a pay raise, whether it’s with the Maple Leafs or if he signs elsewhere.
That’s where the deferred salary could come in as an option in a Marner contract. Much like Jarvis’ deal, if Marner’s new deal eclipses his current cap hit, there’s always the option of lowering that initial cap hit down to a lower value to alleviate another cap strain. It also gives more money to work with for the team and fill other areas in the lineup. When the deal has expired, whatever the amount both sides agree upon to defer, he will earn that money back at the end of his deal. It’s definitely something that could be beneficial for both sides this time around.
Related: Oilers & Maple Leafs: Exploring Odds of a Nicholas Robertson Trade
Whether or not Marner chooses to defer, it’s up to him. As we’ve seen many times before, players in this league like to get paid right away when they sign. Though, subtracting a smaller portion of the contract to earn later on could be something to consider.
In the end, Marner is going to be earning his contract fully one way or another. He got a massive deal last time and he could get another one this time around. Only difference is a certain amount will be given to him later on. Then again, he saw Auston Matthews and William Nylander got paid in full on their next deals and will definitely want the same.
Whether or not his happens in the Marner negotiations, it’s certainly worth exploring.
Salary cap numbers from PuckPedia and CapWages.
