Gord Miller tweeted out the new offer sheet compensation limits:
Offer sheet compensation has been set for 2019/20— Gord Miller (@GMillerTSN) May 3, 2019
$1,395,053 or below: None
$4,227,438-$6,341,152: 1st, 3rd
$6,341,153-$8,454,871: 1st, 2nd, 3rd
2 1sts , 2nd, 3rd
$10,568,590+: 4 1sts
But wait, there’s a couple of things you need to know first.
- NHL teams cannot negotiate with a player in regards to an offer sheet until 5 p.m. on June 26. The player cannot sign that offer sheet until July 1.
- If the player (but not the team) elects arbitration, he cannot sign an offer sheet.
- The team submitting the offer sheet has to have all of the required compensation picks, and they have to be their own picks. They have to be picks for the next draft (so 2020) unless they are required to have two picks of the same round. Then they can have two of the next three year’s picks to offer.
- And now for the calculation of the AAV:
The compensation limits are the AAV of the offer sheet averaged over the length of the contract to an upper limit of five years. Here is an example to explain this: If Mikko Rantanen signs an offer sheet for 7 years at 10 million, that seems at first look to require two first-round picks, one second and one third.
But that $70 million has to be divided by 5, so it’s actually an AAV of $14 million, and is a top-tier, four first-round picks compensation offer sheet.
Now, you’re ready to go make up offer sheet scenarios. Here’s a handy list of all the RFAs for you.