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2020 Offer Sheet Compensation

October 9, 2020 at 10:56 am CDT | by Gavin Lee 2 Comments

We finally saw an offer sheet used last summer as the Montreal Canadiens signed Sebastian Aho to a five-year deal, but the deal was quickly matched by the Carolina Hurricanes. Aho stayed put, but the team had to turn down a big package of draft picks that Montreal would have had to surrender.

Offer sheet compensation is based on the average salary of the league, and the NHL has released the thresholds for this year. Below is the full breakdown, with the contract’s average annual value placing it in one of seven tiers:

$1,439,820 or less No compensation
$1,439,820 to $2,181,545 Third-round pick
$2,181,545 to $4,363,095 Second-round pick
$4,363,095 to $6,544,640 First and third-round picks
$6,544,640 to $8,726,188 First, second and third-round picks
$8,726,188 to $10,907,735 Two firsts, a second and third-round picks
Over $10,907,735 Four first-round picks

It is important to note that any team trying to sign a player to an applicable offer sheet must use their own draft picks for compensation, not ones that have been acquired. That rules several teams out already from signing high profile RFAs, unless they were to work to reacquire their picks before submitting the contract.

There are some restricted free agents, like Philadelphia’s Nolan Patrick, that have not accumulated enough time in the NHL to be eligible for an offer sheet. The full list of eligible players can be found here. For more information about the details of offer sheets, check out CapFriendly’s FAQ.

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RFA Offer sheets

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Comments

  1. MoneyBallJustWorks

    5 years ago

    Even though it’s a flat cap, I wonder if a team with lots of cap space makes an offer sheet because of it. The Wings for example could offer sheet Barzal for 8.5 per and put the isles in a position where if they match, it will cost them a roster player or two.

    Reply
    • pawtucket

      5 years ago

      Wings could offer Sheet Barzal, but he would decline it. (aka: not sign it)

      1
      Reply

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