NHL Rumors: Seth Jarvis, Hurricanes Agree to 8-Year, $63.2M Contract Extension

Seth Jarvis is going to be a member of the Carolina Hurricanes for a long time after the two sides agreed to an eight-year contract extension.

Per Frank Seravalli of Daily Faceoff, Jarvis' eight-year deal is worth $63.2 million and contains "substantially" lower cap hits than those terms would suggest because agreed to defer salary.

A traditional cap hit is calculated by dividing the total value by number of years on the contract, which in this case would be $7.9 million.

According to Seravelli, Jarvis will count roughly $7.5 million against the cap for the Hurricanes thanks to his deferrals.

Seravelli noted that no one would confirm exactly how much money was being deferred, but there is a deferred signing bonus payment that will be paid out one day after the contract expires on June 30, 2032.

Deferred payments are a tool that teams in various sports have used for a variety of reasons. It's most common in Major League Baseball, with Bobby Bonilla Day happening every July 1 to commemorate his payment from the New York Mets as part of his release agreement in January 2000.

Shohei Ohtani took deferred money to another level in his 10-year, $700 million pact with the Los Angeles Dodgers. He will only make $20 million of that during the life of the contract, with the remaining $680 million to be paid out in $68 million installments over a 10-year period from 2034 to 2043.

Since MLB only calculates luxury tax salary based on the present-day value of a contract, Ohtani lowered his tax hit from $70 million to $46.1 million by deferring pay.

The NHL collective bargaining agreement does allow for deferred payments, but Seravelli wrote Jarvis' deal is believed to be the first one that takes advantage of it "in a meaningful way."

Jarvis was a restricted free agent after playing out his three-year, $2.8 million rookie contract. The Hurricanes are currently $6.4 million under the cap before factoring in Jarvis' salary.

Carolina selected Jarvis with the No. 13 overall pick in the 2020 NHL draft. He debuted for the club at the start of the 2021-22 season and has been an impact player.

The 22-year-old has 146 points in 231 career games. He set career-highs in goals (33) and assists (34) in 81 games last season.

Carolina has posted three consecutive seasons with more than 110 points after having one 100-point season in the previous 41 years (112 in 2005-06). The Hurricanes lost in the second round of the playoffs last season to the New York Rangers.