Inspired by this article: https://www.sportsnet.ca/hockey/nhl/goes-brown-fix-nhls-broken-offer-sheet-system/

Do you think an expansion type system would work as an enticement for teams to not match offer sheets?

The article suggests a return to player compensation. I'm suggesting a combination of a pick package, and the ability to select an unprotected player from your organization.

When you submit an offer sheet, it's accompanied with a protected player list. Doesn't have to be the same terms as the current expansion rules, but a similar idea.
That team may either match, or accept the picks, in addition to acquiring a player of your choice.

Let's say Montreal had offer sheeted Hertl at $5M AAV.
San Jose could match, or they would receive Montreal's 1st and 3rd, plus an unprotected player.
Perhaps Lehkonen, Scherbak, and Mete were among the unprotected players.

That seems pretty tempting for San Jose. It would be desperation on Montreal's part for this particular example, but that's the point of an offer sheet. When you aren't able to draft, develop, or otherwise acquire a top 6 C by any other means, there might be a viable option out there.

Currently, offer sheets only serve to brew bad blood by tampering with another team's cap situation. If the compensation was more of a desirable option, an offer sheeted team might actually be thankful for the opportunity. The flexibility of picking a player you are interested in, who might contribute more immediately than future draft picks, could be enough incentive.

It’s an interesting idea, but offer sheets were introduced to give players more flexibility with their negotiation rights, this is something the NHLPA wanted. Teams/GMs/owners if they had their way imo they remove it and keep full control of their players rights for as long as possible. What you’re suggesting is giving more flexibility to entice teams to offer sheet, which they don’t necessarily want, and have some players (those left unprotected) go through another expansion type process they’d want to avoid.

From a fans perspective it would be cool and exciting. But I don’t see the NHL or NHLPA having any interest in having those discussions. I could be wrong though.

No. You're probably right, in that the NHL brass prefers not having offer sheets happen with any kind of regularity. The article went over that aspect.

As for players wanting it. That could go either way. Young players would get more options if they want out of an organization. Older players would risk more exposure where they may not want to move, but there's less chance of them being selected in such a process.

Just a rough idea. Purely from the fan side of things. Offer sheet drama and off season player movement are interesting. Not a lot of entertainment value in a tool that never gets used.

What I don't like about the offer sheet is the "universal" compensation . You gave an example of Hertl being signed by Montreal for a first and a third. Well San Jose might jump all over that. That first pick could easily be a lottery pick top 15 and maybe a lot better. And San Jose still has 5m (or about that) that would have spend on Hertl. Now if Boston had offered sheeted Hertl the pick might be about 25. So it seems that "not so good teams" are the ones most likely to have cap space, have the most to lose.

That's a good point, that all offer sheets are not equal. Perhaps the quality of the picks could dictate the protection terms. Even going back to player compensation as suggested in the article, could take that into account.