This just added even more complexity to NHL contracts

Many hockey fans argue that NHL contracts are too complex and overly emphasized in today's game. With cap hits, signing and performance bonuses, escrow, LTIR, and more, navigating the financial landscape of the NHL can be overwhelming. When a new player is signed or traded, discussions often revolve around the details of their contract.

If you already find this overwhelming, brace yourself-things are about to get even more complicated. The Carolina Hurricanes and their new GM, Eric Tulsky, have introduced a new wrinkle: deferred salary.

Recently, the Hurricanes signed Seth Jarvis to an eight-year extension, making him the second player to sign such a deal this summer, following Jaccob Slavin's extension in July.

These aren't your typical eight-year deals. The Hurricanes have opted to delay some of the signing bonuses for Jarvis and Slavin until after their contracts have officially ended, setting a new precedent in NHL negotiations.

Here's how it works: Slavin's new contract starts in the 2025-26 season and runs through the 2032-33 season, paying him a total of $51.688 million. Normally, you'd calculate his cap hit by dividing the total by the number of contract years, which would give an expected hit of $6.461 million per year. However, Slavin's cap hit will actually be $6.396 million per year.

Why the difference? Deferred salary. One of Slavin's signing bonuses of $4.55 million, technically tied to the 2031-32 season, won't be paid until July 1, 2033, after the contract ends. By delaying the payment, the Hurricanes can earn interest on that money, which reduces Slavin's cap hit.

The NHL adjusts for this by discounting the deferred salary based on its future value, which is why Slavin's cap hit is slightly lower than expected. While the savings are minimal-just $65,000 per year-it adds up over time.

Seth Jarvis, on the other hand, signed an eight-year contract that starts in the 2024-25 season. His deal involves more deferred bonuses, leading to a significant reduction in his cap hit-from an expected $7.9 million per year to $7.42 million. This saves the Hurricanes nearly $480,000 per year, which adds up to $3.8 million over the contract term-a substantial amount in today's cap-driven NHL.

So, what's in it for the players? Not much, financially speaking. They don't get extra compensation; at best, they might negotiate for slightly higher total earnings in exchange for delayed payments. However, they do help their team by reducing the cap hit, which could allow the team to be more competitive.

This concept of deferring salary might catch on, especially with players like Slavin and Jarvis setting the precedent. It's easier to convince a player to delay payment rather than take a pay cut, making this an appealing option for teams looking to manage their cap space more effectively.

This isn't a new strategy; it's been possible for some time. For example, Shane Doan signed a one-year deferred salary deal with the Arizona Coyotes for the 2016-17 season. But with the recent high-profile contracts of Slavin and Jarvis, deferred salary might become more common in future NHL negotiations.