Compensation on the 2022 NHL Offer Sheet
Update of the offer sheet:
Here are the updated offer sheet reward tiers for the 2022 off-season.
The updated tiers represent an increase of approximately 2.21% over last year’s thresholds, which is 50% of the 4.42% average pay increase for players in 2022. https://t.co/fTuH7jqThF pic.twitter.com/8Z2eu40hcn
— CapFriendly (@CapFriendly) May 18, 2022
Each year at this point, the NHL calculates the average player salary for the current season, which determines the pay-list pay tiers for the upcoming offseason. Compensation for successful bids on the bid sheet are draft picks. There are no longer compensatory draft picks for mandatory trainers or GMs.
The levels this year are:
- No compensation is required up to $1.38649 million
- One third of the above up to $2.100742 million is required
- The above to $4.201488 million takes a second
- $6.30223 million requires a first and a third
- $8.402975 million requires a 1st, a 2nd, and a 3rd
- $10.50372 million requires two 1sts, a 2nd, and a 3rd
- Any amount above the above requires four 1st.
CapFriendly’s page, linked in their tweet, shows you the teams that have the picks to close these deals as of now. Only Florida and Tampa cannot make a bid hand over the maximum. Montréal is up against Carolina in the supply list war, so they’re ready with the ability to make deals at any level. That’s how the canes are, as luck would have it.
Some rules to remember:
- NHL teams cannot negotiate an offer sheet with a player until July 12 of this year. The player cannot sign this offer sheet until July 13th.
- If the player (but not the team) chooses arbitration, they cannot sign an offer sheet.
- The team submitting the bid sheet must have all the required compensation tips and they must be their own tips. They must be picks for the next draft (i.e. 2022) unless they must have two picks in the same round. Then they can offer two of the next three year selections.
- And now for the calculation of the AAV to determine the threshold:
The remuneration limits are the AAV of the offer sheet averaged over the contract period up to an upper limit of five years. Here’s an example to explain this: When Patrik Laine signs a 7-year offer sheet at 10 million, at first glance it appears to require two first-round picks, a second and a third.
But that $70 million has to be divided by 5, so it’s actually a $14 million AAV and a prime pay sheet with four first-round picks.
Now you’re ready to create quote sheet scenarios. Here is a handy list of all RFAs for you. Note: The list includes Grade 10.2(c) RFAs that are not eligible to receive a tender sheet.
Remember, it’s not a team making an “offer” to a player, it’s a player signing a contract for a new SPC with another team. The player is the decision maker with total control in these situations.