2017 Offer Sheet Compensation

Though it is almost never used in today’s NHL, the idea of an offer sheet still intrigues fans and media alike. Signing a restricted free agent out from under the nose of a rival, taking a superstar away in his prime. Brett Barrett broke it down for us earlier this month, when he took a look at some of the top available names on the RFA market this summer. We’ve seen examples of offer sheets in the past, with Shea Weber signing a 14-year contract with Philadelphia in 2012, only to have it matched by Nashville. The Predators would have received four first-round picks had they let the then-26-year old Norris runner-up walk away.

Offer sheet compensation is based on the average salary of the league, something that Elliotte Friedman reports has gone up to ~$3.01MM this season, a 4.55% bump from a year ago. Because of it, the compensation has been set and Friedman has provided a breakdown.

$1,295,571 or less	No compensation
$1,295,571 to $1,962,968	Third-round pick
$1,962,968 to $3,925,975	Second-round pick
$3,925,975 to $5,888,960	First and third-round picks
$5,888,960 to $7,851,948	First, second and third-round picks
$7,851,948 to $9,814,935	Two firsts, a second and third-round picks
Over $9,814,935	Four first-round picks

This season has an impressive group of RFAs headlined by players like Leon Draisaitl, David Pastrnak and Ryan Johansen (among many, many others). There will be much speculation over a possible offer sheet, but they’re used more as a negotiating tactic for the player than a real option for teams looking to acquire talent. Even if they are signed, the player is hardly ever allowed to leave.

It is important to note, that to sign a player to an offer sheet a team must still have their own original picks for the compensation. That means they can’t go out and deal for picks in order to sign a player. Compensation would begin from the 2018 draft, as none of the sheets could be signed until July 1st when these players become free agents. Another small note, is that if a team does decide to match an offer sheet to retain the player they cannot trade him for an entire year afterwards.