The NHL and NHLPA are in talks over a new multi-year, multi-million dollar deal that could include a $100,000-per-year signing bonus for the next three years.
The NHLPA announced on Wednesday that talks were underway to finalize a deal with the NHL that would be worth $1.8 billion, which would make it the second highest-paid athlete contract in NHL history.
Including bonuses, the deal is worth about $800 million.
The deal would also provide $750 million in additional incentives for signing, including $500 million in the first year, $250 million in each of the next two years and $200 million in a third year.
The additional incentives would go into effect when the deal was finalized in March 2021.
Under the deal, the first-year bonuses are worth $150,000 and the second-year bonus is worth $175,000.
The third year bonus is $225,000, while the fourth year bonus would be $250,000 in 2021-22.
The $100-million signing bonus is a key component of the agreement, and the NHLPA and the union are working on a deal that would allow teams to use it as a signing bonus to make players eligible for incentives if the players signed after Dec. 31, 2019.
The new contract would give the NHL more leverage over teams who are not signing a long-term extension or have their salary cap hit reduced.
This could allow the league to use the signing bonus as leverage in negotiations for new deals.
The salary cap has already been raised from $70 million to $78 million in 2019-20.
The new deal would give more leverage for the league if the cap were to rise, which could lead to a higher percentage of players making a signing or salary cap payment in 2019.
In addition to the signing bonuses, there would be a $10,000 signing bonus on top of the $100 million signing bonus.
Players would receive an additional $500,000 for signing after Dec.-31, 2019 and $2,000 per year thereafter, which is for four years.
The maximum signing bonus per team would be two times that amount.
The agreement also includes $500 bonuses for players who are selected in the 2018 Entry Draft.
Last year, the NHL made a $30 million signing incentive to players who made their NHL debuts before the beginning of the 2018-19 season.
This year, players would receive $50,000 on top, plus an additional bonus of $100 for each year of service before Jan. 1, 2019, and $1,000 a year thereafter.
Players who are in the final year of their rookie contract would receive the signing incentive of $50 a year for the first three years, $60 for the fourth and $75 for each subsequent year.
The signing bonus would not be counted against the salary cap for the purposes of calculating salary cap hits for players in the 2017-18 season.