Deferred Compensation Cap Hit & Responsibility
If Jarvis is actually getting paid nearly $16m one year after this contract has expired, is there any cap penalty to that for Carolina at that time? Also, if he is owed $16m in the first year of his next contract, is that the responsibility of the Hurricanes exclusively or if he signs somewhere else or is traded, would the new team have to pay him that PLUS what ever that new contract value will be?
Answer
We added a Deferred Compensation Contract article
The only cap hit for Jarvis is during the 8 year contract. There is no cap hit after the contract ends when the deferred payments are made. The responsibility for the deferred compensation is based on who he played for when it was earned. As outlined on his contract, part of his compensation in year 1 and 2 are deferred. Therefore, if he plays for Carolina during those years, they have to pay that out on July 1, 2032. He also has deferred compensation earned for Year 7. Whoever he plays for when that signing bonus is earned is responsible for paying it out on July 1, 2032.
