Toronto Maple Leafs

Maple Leafs Try First-Ever Payment Strategy on McCabe Extension

The Maple Leafs use deferred payments for the first time in Jake McCabe’s new extension, something new for the organization.

by
Jim Parsons
October 28, 2024

The Toronto Maple Leafs have made franchise history with Jake McCabe‘s recent five-year extension by incorporating deferred payments into the contract—an unprecedented move for the organization. The contract, with an average annual value of $4.51 million, uses deferred money between years two and three to lower the cap hit, which would have been around $4.7 million without this structure.

The Carolina Hurricanes recently brought attention to deferred payments when they applied it to the contract of forward Seth Jarvis.

Jake McCabe's extension with the #leafs includes some deferred money, which lowered the cap hit to $4.51M. Fair to say he left some money on the table here.
— Chris Johnston (@reporterchris) October 28, 2024

Deferred payments are rare as most players don’t want to wait to earn their money. For McCabe, it’s not a lot to have to wait for and it allows him to remain in Toronto, which he expressed publicly when training camp opened in September. He seemingly agreed to do it because it increases his take-home pay after the deal is done and improves tax efficiency. As one X.com user wrote, “My tentative understanding is if McCabe’s official residence is not in Canada — or even better in a no-tax US state — at the time of payment, he won’t owe as much money in taxes on the sum.”

For the Maple Leafs, it gives them just a little bit more room on their cap to use on another player, potentially Mitch Marner.

How the McCabe Deal Breaks Down with Maple Leafs

Under the terms of the extension, McCabe will receive a signing bonus-heavy payout in Year 1, with a gradual decrease over the remaining four years. The breakdown is as follows: $6 million in Year 1, $5.5 million in Year 2 (some deferred), $4.8 million in Year 3 (some deferred), and $3.6 million in both Years 4 and 5.

Brad Treliving Jake McCabe Maple Leafs deal includes deferred payments

This creative structuring means McCabe effectively left some money on the table to make this deal work for the team, as noted by insiders like TSN’s Chris Johnston. Whether they try this again with anyone else or others on the team are open to the idea remains to be seen.

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