Details Revealed in Clever Extension for Ducks Forward
The Anaheim Ducks took care of business with the contract extension for scoring winger Frank Vatrano. The pending free agent signed a new three-year deal with the organization, keeping one of their most important veteran players around for the next few seasons.
The Ducks continued the trend of using clever and creative means to get the most out of this deal with Vatrano. The details of the contract reveal that there is a deferred salary at play in this extension, which is helping to lower the annual salary cap hit for the Ducks and spread out how long Vatrano is set to be paid by Anaheim.
NHL insider Pierre LeBrun first shared the details of the extension. He notes that while the deal is for three years and a total of $18 million, half of that money will be deferred. This means that he will be paid a base salary of $3 million for the next three seasons, but beginning in 2035 he will make $900,000 annually for the next 10 years.
For Vatrano, this will extend the length he will receive substantial money and may save him money in the long-run. When his deferred payments begin 10 years from now, Vatrano will no longer be playing in the NHL. According to LeBrun, he and his family plan to live outside of California when he retires, meaning that they would not be subject to the same tax rate in the state of California relative to wherever they are living at the time of retirement.
This also helps the Ducks by lowering his salary cap hit in the meantime. Rather than having a $6 million cap hit for the next three seasons, he will only count $4.57 million against the cap, saving the team nearly $1.5 million.
The creativity in contract extensions is continuing across the NHL. Last summer, the Carolina Hurricanes utilized deferred money with Seth Jarvis and saved themselves on their yearly salary cap spending. With the Collective Bargaining Agreement coming to an end next year, these types of deals will likely continue to be signed as players and teams try to maximize the benefits and values from signing new deals.