In an announcement from himself and his young daughter, Frank Vatrano is committing to Orange County for another three seasons. In a quick follow-up from TSN’s Pierre LeBrun, Vatrano’s three-year pact will pay him $16M in total but carries an uncommon method of deferred salary.
LeBrun shares that Vatrano will earn a base salary of $3M each year of the deal with $9M deferred. From 2035, Vatrano will earn $900K annually from the Ducks until 2044. LeBrun asserts that Vatrano plans to live outside of California in retirement giving him the flexibility to earn his annual disbursement in a tax-free state. Additionally, the creativity of the deferred salary brings Vatrano’s cap hit down to $4.67M (instead of $6M), which provides cost-savings to Anaheim.
Being primarily used in Major League Baseball, this is the most creative use of deferred salary in recent memory in the National Hockey League and may be a sign of things to come. There are increasing concerns that teams within states without an income tax have a competitive advantage over other teams, particularly in comparison to the Canadian market in recent years. The use of deferred salary by Anaheim may be a way to show players, particularly unrestricted free agents, that there are creative ways to dodge financial impediments.
For Vatrano’s part, it’s a healthy raise on his $3.65M salary for the last three years. After a disappointing year with the New York Rangers, the Ducks signed Vatrano to a three-year, $10.95M contract as an unrestricted free agent in the summer of 2022.
Subsequently, he’s enjoyed the two most productive seasons of his career. Vatrano scored 22 goals and 41 points in 81 games for Anaheim during the 2022-23 season, finishing tied for third on the team in goal-scoring. He followed up that performance with the best season of his career, scoring 37 goals and 60 points in 82 games, shattering his previous record of 24 goals in 2018-19 with the Florida Panthers.
