NHL Rumors: How Will Leon Draisaitl and Seth Jarvis Contracts Affect Future Contracts?

Sportsnet: Frank Seravalli breaks down Leon Draisaitl and Seth Jarvis’ contract extensions, their individual structure, and how these contracts will impact future NHL contracts. Draisalt’s deal was more signing bonus heavy while Jarvis deferred payment arrangements.
** NHLRumors.com transcription
Justin Cuthbert: “For over two months now we have been discussing Leon. In these last two months as it relates to Draisaitl and Oilers- related matters (i.e. hiring of new GM), along with any discovery efforts from Leon as they might pertain. What happened over these last two months Frank?”
Seravalli: “There was no extensive fact-finding mission. All it would take would be reaching game seven of the Stanley Cup final to know you were close but didn’t quite succeed in winning one.”
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On paper there’s also an attractive contract in place, not only regarding total dollars (112M), but also regarding structure: 104% guaranteed through signing bonus money guarantees this commitment with most likely $8 Million coming directly out of Edmonton’s pocket (one million per year over eight-year deal) paid as signing bonuses by Leon’s team mates – meaning all but $8 Million guaranteed under signing bonuses alone will come through signing bonus money payments by Edmonton as opposed to paying them all outright upfront in full or via signing bonus payments alone from Leon himself or through signing bonus money or signing bonus money guaranteed through signing bonuses provided by Leon himself or his teammates; $8 Million will come directly out of their wallet with $104 million guaranteed under signing bonuses which the Oilers paid all but $8 Million on in signing bonuses paid from Leon’s contract; hence why they paid him out in full at $1 Million each year of his eight year long deal agreement in signing bonuses alone from this contract being offered from Leon’s side in full from his teammate Leon Draisaitl’s own pocket as signing bonuses alone from Oilers players themselves!
As this contract represents an AAV record-setter, no discounts were applied here; rather, discussions focused mostly on structure.
Over the weekend I wrote something regarding Seth Jarvis’ new contract that defers salary; something the Oilers and Draisaitl discussed throughout. Instead, this agreement ended up featuring more signing bonuses.
Ailish Forfar: “Yeah, without going too far off topic here, Seth Jarvis certainly caused quite an uproar during this whole situation involving deferred money in general and why capologists hadn’t utilized this practice more in the past? Are we likely to witness more deferred payments going forward than ever in NHL?”
Seravalli: “Yes. To succeed we need a paradigm shift from traditional player thinking as dictated by agents; an agent-centric focus may lead them down an incorrect path if their clients want more value faster – thus prompting players to get as much out of what’s being offered, ASAP.
Seth Jarvis signed an unusually complex contract which pays him more over time using time value money calculations, but for Leon Draisaitl it must also work and deferring money take place smoothly on both ends. A prominent NHL executive informed me this may take longer, however.
People tend to believe the earlier they invest their funds, the sooner they will reap better returns than just using traditional interest rates – which in Seth Jarvis’ case were approximately five and one quarter percent, which may not seem all that appealing depending on your investment amount.
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Reason why it could become popular is because there will be many players similar to Draisaitl out there – on their third contract on an NHL team with realistic playoff hopes where every dollar counts – who need extra ammunition and deferred savings, so providing that to your GM/front office staff could turn out to be win-win-win scenario.”