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Explaining how offer sheets work in the NHL
Source: https://soundofhockey.com/2025/03/20/explaining-how-offer-sheets-work-in-the-nhl/
With the NHL Trade Deadline behind us and a zero percent chance of the Seattle Kraken making the postseason, the question is: How do the Kraken get better for next year? After the trade deadline, general manager Ron Francis appeared on the Kraken Hockey Network pregame show on March 9 and outlined how NHL teams can acquire players, saying, “One is draft and develop. One is to trade for them. One is the free agent market and one is offer sheets.”
Watch the full interview here:
My ears perked up when I heard Francis mention offer sheets. With the NHL salary cap rising over the next three years—$95.5 million in 2025-26, $104 million in 2026-27, and $113.5 million in 2027-28—teams will have extra money to make bold moves. Historically, offer sheets are rare, but the cap increase could lead to them becoming a more frequently used strategy.
It has long felt like there was an unwritten rule among GMs to avoid offer sheets, but the tides may be shifting. With the additional cap space, this could be a viable way for the Kraken to introduce new talent to the team.
Since their introduction in 1986, only 44 offer sheets have been accepted by RFAs. Under the current Collective Bargaining Agreement (CBA), only six offer sheets have been signed in its 12-year span. Could a few more be signed this offseason?
What is an offer sheet in the NHL?
An offer sheet is a contract offered to a restricted free agent (RFA) by a team other than his current club. It is essentially a competitive offer made directly to a player whose rights are still held by another team. If the player signs the offer, his original team has seven days to match the terms and retain him or let him go and receive draft picks as compensation.
Below is an overview of the specifics that make offer sheets interesting, followed by some thoughts on how they could play a role for the Kraken and across the NHL this offseason.
Offer sheet details
Requirements
- Offer sheets can only be presented to Group 2 RFAs who have received a qualifying offer. A Group 2 RFA is a player who has previously signed an NHL contract, is under 27 years old, and has fewer than seven accrued NHL seasons.
- Group 4 RFAs—players drafted but never signed by their original team—are not eligible to receive offer sheets.
- If an RFA files for arbitration, they can sign an offer sheet before the arbitrator’s decision but not afterward. Once an RFA signs a new contract or accepts a qualifying offer, they are no longer eligible for an offer sheet.
Timing
- Offer sheets can only be extended between July 1 and December 1.
- Once an RFA signs an offer sheet, his original team has seven days to match or decline the offer.
Compensation picks
If a team successfully signs an RFA to an offer sheet, and the original team does not match, the signing team must provide draft pick compensation based on the player’s average annual value (AAV). Below is the 2024 compensation structure:
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The AAV thresholds will increase for the upcoming offseason, typically announced in early June. The compensatory draft picks must be a team’s own picks, meaning draft picks acquired via trade that aren’t originally theirs cannot be used for compensation.
AAV calculations
For offer sheets, AAV is calculated slightly differently than for salary cap purposes. While a player can sign a deal for up to seven years, for compensation purposes, the AAV is capped at a five-year maximum. For example, a seven-year, $35 million deal would have a $5 million cap hit, but for compensation, the AAV would be calculated as $7 million ($35M/5), requiring a first-, second-, and third-round pick based on the 2024 compensation table.
Kraken potential involvement
The Kraken have around $20 million in cap space for next season and hold 12 draft picks in the first three rounds over the next three years. Francis has hinted at using these assets to improve the roster, potentially through trades—or maybe even an offer sheet.
The future of goaltender Philipp Grubauer remains uncertain, with a buyout becoming increasingly likely. If the Kraken are in search of a backup goalie, RFAs who could be acquired via offer sheet include:
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Stats current as of March 17
On the forward front, intriguing RFAs with offensive potential include:
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Stats current as of March 17
Offensive defensemen like Evan Bouchard and Bowen Byram could also be stolen away via offer sheets, but given the Kraken’s solid defensive core, a major move in this area seems unlikely.
On the other side of the coin, other teams could sign Kraken RFAs to offer sheets to force their hand. Last week we set expectations for RFAs and while most offer sheets presented to Kaapo Kakko or Ryker Evans would likely be matched, they could create significant headaches for Seattle’s front office. If the Kraken prefer a specific term length, an offer sheet could disrupt those plans, forcing them into either overcommitting or losing the player. Kakko, in particular, is one year away from unrestricted free agency and could leverage an offer sheet to push for a one-year deal.
Offer sheets around the NHL
Only 13 teams currently hold all their own draft picks in 2026, making them eligible to tender an offer sheet at any tier. Of these, 11 are outside the playoff picture as of March 18. The two playoff teams, Los Angeles and New Jersey, are not considered Stanley Cup favorites, but if they have a deep playoff run, could decide the later-round picks would be better spent via an offer sheet.
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One of the biggest potential targets is Bouchard of the Edmonton Oilers. A team offering Bouchard an AAV of $10-11 million would put Edmonton in a tough spot, potentially forcing them to choose between matching or losing their top defenseman.
Matthew Knies of the Toronto Maple Leafs is another interesting case. At 6-foot-3 and 227 pounds, he’s a big-bodied winger who can score. With John Tavares and Mitch Marner entering free agency, Toronto has some holes to fill and could have a tough decision become even tougher if Knies signs an offer sheet. Knies does come with a bit of risk because his shooting percentage is unsustainably high at 21.2 percent, and he also benefits from playing with two superstars in Marner and Auston Matthews on his line.
Examples of offer sheets
Let’s review two recent examples of offer sheets: Philip Broberg in 2024 and Sebastian Aho in 2019. These two cases illustrate the different strategies behind offer sheets. St. Louis used a well-calculated gamble to acquire an unproven but promising defenseman, while Montreal aimed high but ultimately failed to pry away a franchise player. Offer sheets remain a rare but fascinating tool for teams looking to add talent.
St. Louis and Edmonton
Philip Broberg was a first-round pick in 2019 (eighth overall) by the Edmonton Oilers. Since being drafted, he split time between the Bakersfield Condors of the AHL and the Oilers, never quite securing a full-time NHL role. However, in 2023-24, Broberg took a significant step forward, posting 38 points (five goals, 33 assists) in 49 AHL games. He also appeared in 10 playoff games for Edmonton, positioning himself to make the Oilers’ roster for the 2024-25 season.
Then came the St. Louis Blues, who signed Broberg to a two-year offer sheet worth $4.58 million per year—well above his expected market value. As an unproven NHL defenseman, Broberg was likely looking at an offer in the $1-2 million range from Edmonton. St. Louis structured the deal strategically, staying just below the threshold that would have required a first- and third-round pick as compensation. Instead, by keeping the contract within the second-round pick range, the Blues forced the Oilers into a tough spot. Already in a tight cap situation, Edmonton chose not to match, reluctantly accepting the second-round pick. While St. Louis initially overpaid, Broberg has rewarded them with a strong first season, logging 21 points (six goals, 15 assists) while averaging 20:16 of ice time per game.
Montreal and Carolina
Sebastian Aho’s offer sheet in 2019 was a different case entirely. Unlike Broberg, Aho was an established NHL star, coming off an 83-point (30 goals, 53 assists) season. The Montreal Canadiens saw an opportunity and extended a five-year, $8.46 million AAV offer sheet to the young center. At the time, the NHL salary cap was $80 million, meaning Aho’s contract accounted for 10.5 percent of the cap—a substantial deal in 2019. The offer was enough to tempt Aho into signing, but Montreal’s plan ultimately failed. Carolina didn’t even wait a full day before matching the offer sheet, ensuring they kept their star player.
The deal Aho signed in 2019 expired after the 2023-24 season, and he has since earned a well-deserved pay raise, signing an eight-year extension worth $9.75 million per year. Adding to the intrigue, Carolina seemed miffed that Montreal had offer-sheeted one of their players. Two years later, the Hurricanes retaliated by signing Jesperi Kotkaniemi from the Canadiens to an offer sheet—one that included a signing bonus of exactly $20, a nod to Aho’s jersey number.
Final thoughts
Will offer sheets rise from the deep to become a legitimate strategy, or will GMs continue to avoid them? If the trend picks up, the 2026 offseason could be fascinating with players like Connor Bedard and Jason Robertson set to become RFAs.
Teams worried about losing RFAs to offer sheets can avoid the risk by signing their players to extensions before July 1. Ultimately, it’s always up to the original team whether to match the offer and retain the player or take the compensation and move on, but an offer sheet from another team can put a team into a pickle by forcing it to pay a player more than it was anticipating.
What do you think? Will offer sheets increase as the cap rises? Are there any RFAs you hope the Kraken target? And at what compensation level would you let Kaapo Kakko, Ryan Evans, or Tye Kartye walk? Let us know in the comments!
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Blaiz Grubic
Blaiz Grubic is a contributor at Sound Of Hockey. A passionate hockey fan and player for over 30 years, Blaiz grew up in the Pacific Northwest and is an alumni of Washington State University (Go Cougs!). When he’s not playing, watching, or writing about hockey, he enjoys quality time with his wife and daughter or getting out on a golf course for a quick round. Follow @blaizg on BlueSky or X.
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The post Explaining how offer sheets work in the NHL appeared first on Sound Of Hockey.
Source: https://soundofhockey.com/2025/03/20/explaining-how-offer-sheets-work-in-the-nhl/