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Seth Jarvis’ contract put the spotlight on a salary-cap loophole. But is deferred compensation really the next big thing or merely a blip on the CBA radar?

BY JARED CLINTON

IF THERE’S ONE WAY to get the attention of the bigwigs in the NHL’s head office, it’s finding ways to get creative with the salary cap. And in the tradition of the since-restricted front-loaded pacts and laughably long long-term deals, it appears there’s a new loophole the league could seek to address: deferred compensation. What has raised alarm bells among the cap-minded crowd is Seth Jarvis’ eight-year, $63.2-million contract with the Carolina Hurricanes, which includes $15.67 million that will be paid out at the end of the contract. In essence, Jarvis will be paid – with interest – at a later date for services rendered during the lifetime of his deal with the Hurricanes. At issue, though, is how present-day cap savings will be passed on to Carolina. Effectively, through the…

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The Hockey News (Digital) - 1 Issue, Goalie Issue 2024

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