New Contract Details Behind Lane Hutson's Eight-Year Deal Reveal a Masterclass by Kent Hughes
Lane Hutson's new eight-year contract continues to make waves across the NHL as new information shared by many insiders reveals that the deal was very well structured.
As you've probably already seen this morning, the Canadiens confirmed an eight-year, $70.8 million extension for Hutson, giving Him an average annual salary of $8.85 million.
But according to information revealed by journalists Eric Engels and Marco D'Amico, this deal is much more complex than it appears.
A deal full of bonuses and financial intelligence
Eric Engels first revealed the detailed breakdown of the contract, showing that the vast majority of the total amount comes from signing bonuses rather than regular salary.
"No-trade clause kicks in Year 6, giving Hutson 10 teams he can choose not to be traded to."
Lane Hutson's $70.8M contract with Canadien breakdown:
Year 1: $1M salary, $11M signing bonus
Year 2: $1M salary, $11M signing bonus
Year 3: $1M salary, $9.5M signing bonus
Year 4: $1M salary, $6.5M signing bonus
Year 5: $1.2M salary, $6M sigining bonus
Year 6: $1.2M salary, $6M signing bonus
Year 7: $2.2M salary, $5M signing bonus
Year 8: $7.2M total
- Eric engels
Lane Hutson's $70.8M contract with Canadien breakdown:
Year 1: $1M salary, $11M signing bonus
Year 2: $1M salary, $11M signing bonus
Year 3: $1M salary, $9.5M signing bonus
Year 4: $1M salary, $6.5M signing bonus
Year 5: $1.2M salary, $6M sigining bonus
Year 6: $1.2M salary, $6M signing bonus
Year 7: $2.2M salary, $5M signing bonus
Year 8: $7.2M total
- Eric engels
This approach allows Hutson to receive a significant sum in the early years while reducing the impact of the contract on the team's salary cap. A classic win-win.
"Lane Hutson was offered more but signed for less. He bought himself security and bought the Habs a bit more room to continue building a championship-caliber team. He wants to win.
He could've held out for more and could've waited much longer.
Not doing that says a lot about him"
- Eric Engels
He could've held out for more and could've waited much longer.
Not doing that says a lot about him"
- Eric Engels
But D'Amico adds that this structure was also designed to benefit the player from a tax perspective:
"Hutson's camp wanted more of a front-loaded deal and the very high percentage of signing bonuses vs salary significantly brings down the tax impact for him.
More money after taxes and fees than the Hughes and LaCombe deals."
- Marco D'Amico
More money after taxes and fees than the Hughes and LaCombe deals."
- Marco D'Amico
In other words, Hutson keeps more of his earnings without heavily affecting the Canadiens' salary cap.
This deal, advantageous both for the player and the organization, once again demonstrates how exemplary Kent Hughes' management is. Hutson's teammates are also super happy for him!
