With the official news of Cale Makar’s contract extension dropping on Friday, the justifiable celebration now gives way to the rigors of analyzing what just happened.
The evident bit of news is the record number. $163.2 million, or $20.4 million against the cap. Those are the biggest numbers in NHL history, and there’s no debating that Makar is worth it. If anything, what the Avalanche are paying is for the certitude of grabbing Makar’s five or six peak years, ranging from 2026-27, when he’s still under his old deal, and running through about 2030-31, when he’ll be about 32 years old.
That said, there’s an interesting twist in the Cale Makar contract. And it’s one that explains why the deal happened now, thankfully.
PuckPedia shows that over 80% of Makar’s new contract will consist of signing bonuses. Mind you, that’s a crucial factor.
Under the new Collective Bargaining Agreement (CBA), Makar would only be eligible for a maximum of 60% of the contract’s value, to be paid out in signing bonuses.
That’s why the deal had to happen before September 16.
Makar will be getting $16.8 million of his $20.4 million AAV in signing bonuses for six of the eight seasons. Year 4 only reports $8 million, while the final year accounts for $18.8 million.
That uneven structure allows the two sides to avoid the argument that the contract is too front-loaded. Moreover, it gives Makar a tax break under the US-Canada treaty. Instead of paying 50% in taxes on the entire $163.2 million, Makar will get a break on the signing bonuses, which account for about 15%.
Avalanche added something everyone expected in Cale Makar contract
There was something else everyone expected the Colorado Avalanche would include in Cale Makar’s contract: A full no-movement clause. That situation effectively joins Makar and the Avalanche at the hip for the next decade, or so.
That’s fine, and it’s the sort of terms you would expect in a deal like this. Makar got what he wanted, the Avalanche locked up their guy, and he’ll be in Colorado until he’s 36.
It’s worth pointing out that this contract highlights just how expensive UFA years can be for truly elite players. That’s what the Avalanche are hedging against. The first couple of years of this deal will look really onerous. But you bet your bottom dollar that the deal will look a bargain in the third or fourth years, especially as other stars begin re-upping their deals.
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