Report: Hurricanes Sign Seth Jarvis to Innovative Extension

The Carolina Hurricanes have reportedly signed restricted free agent Seth Jarvis to an innovative new contract.

May 9, 2024; Raleigh, North Carolina, USA; Carolina Hurricanes center Seth Jarvis (24) looks on against the New York Rangers during the first period in game three of the second round of the 2024 Stanley Cup Playoffs at PNC Arena. Mandatory Credit: James Guillory-USA TODAY Sports / James Guillory-USA TODAY Sports

The Carolina Hurricanes have reportedly taken care of their final piece of contract business of the offseason. With the signing of Martin Necas, the team had one restricted free agent, forward Seth Jarvis, remaining to re-sign.

According to Frank Seravalli of The Daily Faceoff, the Hurricanes have agreed to terms with Jarvis on a long-term extension. The reported new deal also has the potential to be a precedent-setting contract.

In his report on the deal, Seravalli writes that the contract is for eight years and a total of $63.2 million. Now, the standard contract structure dictates that the annual average value and salary cap hit of the deal would be $7.9 million. But, the reason this deal is such a game-changer, is because it utilizes deferred payments to reduce the salary cap hit. According to Seravalli, Jarvis' deal will have a cap hit of $7.5 million, saving the team $400,000 per season against their salary cap.

While saving a few hundred thousand dollars per year doesn't seem substantial, the Hurricanes have opened the door for this method of structuring contracts. As Seravalli writes in his report, this isn't a new rule or addition to the NHL's Collective Bargaining Agreement, but the Canes are the first team to take advantage of it.

"Deferred payments have been allowed in the Collective Bargaining Agreement," he wrote. "But to this point, the Hurricanes are believed to be the first NHL team to cross this threshold in a meaningful way. Sources indicated the NHL’s Central Registry and the NHL Players’ Association have been briefed and signed off on the structure of this deal before terms were agreed upon; the deal is expected to be registered on Saturday."

With this deal, the Hurricanes now have their lineup ready to roll for the 2024-2025 season. Jarvis figures to be a huge piece of their offense, and now the contract he has demands more from the young forward. He's coming off his best season, when he scored 33 goals and collected 67 points. Over 231 NHL games, he already has 146 points. Entering his fourth season with the Hurricanes, the 22 year-old forward could be primed for an even bigger season.