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2023 Offer Sheet Compensation

April 27, 2023 at 9:39 am CDT | by Gavin Lee 3 Comments

In 2019, the offer sheet made its comeback after six years away, with Sebastian Aho signing a five-year, $42.3MM contract with the Montreal Canadiens. That was quickly matched by the Carolina Hurricanes, only to see them take some retribution and nab Jesperi Kotkaniemi two years later.

As we wait for the next offer sheet target, compensation thresholds have been set.

Offer sheet compensation is based on the league’s average salary, and as Elliotte Friedman of Sportsnet reports, this year’s thresholds have increased a little more than two percent. Below is the full breakdown, with the contract’s average annual value placing it in one of seven tiers:

$1,415,740 or less No compensation
$1,415,741 to $2,145,061 Third-round pick
$2,145,062 to $4,290,125 Second-round pick
$4,290,126 to $6,435,186 First and third-round picks
$6,435,187 to $8,580,250 First, second and third-round picks
$8,580,251 to $10,725,314 Two firsts, a second and third-round picks
Over $10,725,314 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. An offer sheet’s average annual value is also calculated slightly differently than a standard contract; if the contract is of a length greater than five years, the total salary is still divided by five to determine the AAV.

That would mean a seven-year contract worth $8MM per season would carry an AAV of $11.2MM for the purposes of offer sheet compensation.

Some restricted free agents, like Ottawa’s Shane Pinto, have not accumulated enough time in the NHL to be eligible for an offer sheet. 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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View Comments (3)

Comments

  1. Mikey Rags

    2 years ago

    What ?????

    Reply
  2. rdiddy75

    2 years ago

    So when the Canadiens offer sheet Dubois the Jets would get a First, Second, and a Third? Something to consider.

    Reply
  3. MacJablonski--NotVegasLegend

    2 years ago

    @rdiddy75 – According to CapFriendly’s Offer Sheet Calculator, the Habs could offer him $4,201,489 – $6,302,230 (+ a 1st and a 3rd), or $1,386,491 – $2,100,742 (+ a 3rd), or $1,386,490 or less with no compensation. Or go completely insane with $10,503,721 or more and 4 1st rounders. They don’t have the right combo of draft picks for the other scenarios. Jets might have to trade him if he isn’t interested in staying, or don’t give him a Q.O. and basically let him walk away for cap space. On a side note, it is kind of funny they state “$10,503,721 – ∞”, but I don’t think infinity is the upper limit.

    2
    Reply

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