The Anaheim Ducks have secured a key piece of their offensive puzzle by signing forward Frank Vatrano to a three-year contract extension worth $18 million. This deal, however, is far from ordinary. TSN’s Pierre LeBrun reports that the contract features a unique structure with a significant portion of the salary deferred. Vatrano will receive $3 million in base salary and a whopping $9 million in deferred salary, paid out as $900,000 annually for ten years starting in 2035.
Vatrano’s Unique Deal Structure Offers Benefits for Both Sides
This creative approach allows Vatrano to potentially minimize his tax burden by residing outside of California upon retirement. For the Ducks, the deferred payments translate to a lower average annual value (AAV) against the salary cap – $4.57 million instead of $6 million. This provides the team with much-needed financial flexibility as they continue to build their roster.
This deal could set a precedent for other players looking to play in California while mitigating the impact of the state’s high income tax rates. It’s a savvy move by both Vatrano and the Ducks, demonstrating a forward-thinking approach to contract negotiations in today’s NHL.
Vatrano, 30, is currently in the final year of a three-year, $10.95 million contract. He’s coming off a career-best season with the Ducks, where he tallied an impressive 37 goals and 60 points in 82 games. While his production has dipped slightly this season, he remains a valuable offensive weapon for the Ducks.
This signing signals the Ducks’ commitment to Vatrano and their belief in his ability to contribute to their long-term success. With this innovative contract structure, both the player and the team have found a mutually beneficial solution that could have ripple effects across the league.
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