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Onjoy_Mahmood

Onjoy Mahmood
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Mar. 2, 2019
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Forum: Armchair-GMMar. 6, 2019 at 11:40 a.m.
Thread: Offersheet Point
<div class="quote"><div class="quote_t">Quoting: <b>Hedman77</b></div><div>I know it’s already in the 4 1sts category.
<em>“The AAV for an offer sheet, which determines the compensation required...”</em>
The AAV determines the compensation. It doesn’t have a separate AAV.</div></div>

I think you are misinterpreting 'compensation' then. There ARE two separate AAV's with offer sheets with terms over 5 years.

An offer sheet, itself, contains the terms the player and new team agree to and is broken down as follows (per Exhibit 6 of the CBA):
1. Term of SPC:
2. Signing, Reporting, or Roster Bonus (if any): $
3. Paragraph 1 NHL Salary for each year of SPC: $
4. Paragraph 1 Minor League Salary, if any, for each year of SPC: $

In the example of this ACGM team, lets assume the 7yrs at $12m is all salary paid evenly over each year...the offer sheet is filled out as:

1. 7 years
2. $0
3.
Yr 1: $12m
Yr 2: $12m
Yr 3: $12m
Yr 4: $12m
Yr 5: $12m
Yr 6: $12m
Yr 7: $12m

4. $0

And that's it. It's a very basic form that wants to know the date, the player involved, who the prior team is, who the new team is, and the information provided in 1-4 above.

That form gets signed by the player and new team and submitted to the old team. The old team is responsible for filing it with the NHL to make sure the draft pick compensation is available from the new team and, if it is, the NHL puts a hold on the new team's draft picks while the old team decides whether to match or not.

The only time the CBA refers to dividing by 5 years is found in section 10.4 which talks about how the draft pick compensation is determined when an offer sheet is not matched. That calculation is ONLY applicable to draft pick compensation...not the cap hit the new team is taking on.