The Toronto Maple Leafs and John Tavares are exploring a unique contract structure involving deferred payments. This approach could help the team manage its salary cap while ensuring Tavares is fairly compensated. Here’s how this innovative deal might work and why it could be a win-win for both sides.
How the Deferred Contract Could Work
A deferred contract structure means Tavares would accept a lower annual salary while playing, with additional payments coming after the contract expires. This setup would reduce his cap hit during his playing years, giving the Leafs more flexibility. It’s similar to the extension Toronto offered defenseman Jake McCabe.
For example, if Tavares signs a three-year extension at $4 million per season but defers $2 million annually, his official cap hit would be $2 million, with $6 million paid after the deal ends.
Why Tavares’ Unique Contract Could Be a Good Idea for the Maple Leafs
The Maple Leafs are pressed against the NHL’s salary cap and need every dollar of space. By deferring Tavares’ payments, they can gain cap flexibility. First, a lower cap hit would allow the Maple Leafs to invest in younger talent like Matthew Knies or pursue other free agents.
Second, the contract would allow the Maple Leafs to gain roster depth. More salary cap space means a deeper, more competitive roster. Third, Tavares’ impact would remain on the team. His leadership and consistent production remain valuable, even if his role evolves.
Why Tavares’ Unique Contract Might Be Risky
While this approach offers benefits, it also carries potential downsides. First, future salary cap commitments matter in the long run. Deferred payments eventually count against the salary cap. These would potentially limit future spending. Second, Tavares must be willing to accept delayed earnings, even with career earnings over $100 million. Third, the NHL has to approve of the contract’s structure, ensuring compliance with cap regulations.
Evaluation Chart: Deferred Contract Pros and Cons
| Criteria | Reasons It’s a Good Idea | Reasons It’s Not a Good Idea |
|---|---|---|
| Cap Management | Frees up immediate cap space | Deferred payments still count later |
| Player Value | Keeps a productive veteran | Risk if Tavares’ performance dips |
| Team Flexibility | Enables roster upgrades | May hinder future cap flexibility |
| Player Willingness | Tavares might accept as career winds down | He could prefer guaranteed upfront pay |
| NHL Compliance | League has allowed similar deals | Must adhere to CBA regulations |
The Bottom Line for Tavares and the Maple Leafs
Both sides seem motivated to reach a creative solution. The Maple Leafs need cap space, while Tavares likely wants to stay in Toronto. This could be a landmark contract in NHL negotiations if they can agree on a deferred payment deal that balances fairness and team flexibility.
Related: Maple Leafs Quick Hits: Pacioretty, Tavares & Nylander Leaders
