What an Offer Sheet Will Cost in 2016

If you’re a team planning on placing an offer sheet for another team’s restricted free agent this summer — or a fan who loves speculating — than you’ll want to bookmark this information.

The AAV levels have been set for compensatory picks on successful offer sheets.

Below are the breakdowns, but first, here’s how it works.

If the Edmonton Oilers decide to give Matt Dumba an offer sheet for a contract carrying a $3 million AAV, the Minnesota Wild would first have the opportunity to match that and keep the player. If they decide they will not match Edmonton’s offer, the Oilers are on the line for the contract, as well as compensation to the Wild.

In this example, because the AAV is $3 million, the Oilers would have to give the Wild a 2nd round draft pick in the 2017 draft.

One key to that is that the draft pick has to be their own. If the Edmonton Oilers did not have a 2nd round draft pick of their own in 2017, they can’t sign a player to an offer sheet that requires that 2nd round draft pick. Even if they had another team’s 2nd round draft pick, it wouldn’t work. It has to be their own pick.

The levels below represent a 2.73 percent increase over the levels for the summer of 2015, according to Cap Friendly.

AAV Compensation
Under $1,239,226 No Compensation
$1,239,227 to $1,877,615 Third Round Pick
$1,877,616 to $3,755,233 Second Round Pick
$3,755,234 to $5,632,847 First and Third Round Picks
$5,632,848 to $7,510,464 First, Second, & Third Round Picks
$7,510,465 to $9,388,080 Two Firsts Round Picks, One Second & One Third Round Pick
$9,388,081 or higher Four First Round Picks