The offseason rumor mill loves to toss around one-way deal as if its a golden ticket to the show. Here’s the twist: a 1 way contract NHL veterans covet doesn’t lock a player onto the big-league bench it just locks in the paycheck. That single distinction drives nearly every roster shuffle, waiver gamble, and cap-space chess move you see between October and June.
Below, well strip the jargon from the Collective Bargaining Agreement (CBA) and show exactly how one-way and two-way Standard Player Contracts (SPCs) shape careers, bank accounts, and front-office strategy.
Why Contract Types Shape Every Cap Conversation
When a contender juggles its 23-man roster to stay under the ceiling, the difference between a one-way and a two-way deal can free or clog $1.15 million of cap room in a single transaction. That’s the cost of a deadline depth piece or the reason your fantasy sleeper just got demoted to the AHL.
Fans debate trades; GMs debate the type of contract. Understand the latter, and the next transaction wire starts reading like an open book.
Decoding a One-Way NHL Contract
What does a 1-way contract mean in the NHL?
The CBAs Article 11 calls a deal one-way if the player earns the same stated salary whether hes skating in the NHL, riding buses in the AHL, or being stashed overseas on loan. The money is guaranteed (unless the contract is terminated for cause), but the roster spot is not.
Paycheck Realities
- NHL salary: Listed AAV, paid bi-weekly during the regular season.
- AHL assignment: Same salary no cut, no questions.
- Bonuses: Any signing bonus or roster bonus pays out regardless of league.
Think of it as receiving a major-league paycheck while living a minor-league lifestyle. The players bank statement looks pristine, but his Marriott points pile up in Bakersfield or Belleville instead of Manhattan.
Who signs them?
Veteran depth forwards, backup goalies, and arbitration-eligible RFAs often push for one-way protection. Example: Derek Ryan’s two-year, $1.25 million AAV deal in Edmonton is one-way. The Oilers can send him to Bakersfield but still owe the full freight and only $1.15 million can be buried against the cap, a detail well revisit in the waivers section.
The Nuts and Bolts of a Two-Way NHL Contract
Salary Split 101
A 2 way contract NHL language states two distinct salaries:
- NHL level: Often league minimum ($775 k in 2023-24) or a hair above.
- AHL level: Typically $70 k$150 k, paid only while the player is in the minors.
The dollar gap isn’t cosmetic; it’s a built-in lever encouraging prospects to break camp with the big club and discouraging ownership from eating a seven-figure sum on a fringe player with an entry-level contract.
Who usually takes them?
Entry-level prospects, waiver-exempt rookies, and tweeners who bounce between leagues. Take Jakob Pelletier: his ELC pays $863 k in Calgary but just $80 k in Stockton. Each flight between the two cities literally changes his daily pay rate from about $4,600 to $430.
Case Study: The Late-Bloomer Bet
Journeyman defenseman Lukas Klok signed a one-year, two-way deal with Arizona at age 27: $750 k NHL / $110 k AHL. If he cracked the roster out of camp, he would have made seven times more high-stakes motivation for every preseason shift.
Salary Guarantees, Escrow, and the Fine Print
Are NHL contracts guaranteed?
Yes salary in both one-way and two-way SPCs is guaranteed once the season starts, with three quirks:
- Escrow: Players lose a percentage (6%-10% in recent years) off every check to balance league revenues.
- Signing bonuses: Paid on July 1, unaffected by escrow or demotion.
- Termination clauses: Rare buyouts for breach of contract (Evander Kanes pre-arbitration saga) can void guarantees.
Variable Pay on Two-Way Deals
Only the rate varies by league; the guarantee still stands. If a two-way player spends 40 days in the NHL and 120 in the AHL, his final W-2 shows a weighted blend roughly $200 k plus minors pay deposited like clockwork.
Taxes and Take-Home Nuances
NHLers pay local income taxes where games are played. Demotion to the AHL could move a player from Ontarios 49.5% bracket to Texas’s zero-tax haven, slightly cushioning the salary cut.
Waivers, Buyouts, and Burying Bad Money
Waiver Eligibility & Exposure
A one-way deal does not shield a player from waivers. Eligibility depends on age and pro games played, not contract type. So when Chicago tried to slide a 27-year-old, one-way winger through waivers, every rival got a free claim window.
Burying Contracts in the Minors
Teams may assign an overpriced veteran to the AHL. Cap relief equals league minimum + $375 k ($1.15 m in 2023-24). Anything above that still counts on the NHL books, making seven-figure one-way mistakes painful.
Buyout Mechanics
If stashing fails, a June buyout pays two-thirds of remaining salary over double the term for players 26 or older, one-third for younger skaters in the context of their entry-level contracts. Cap hits accrue, but often smaller than the un-buried AAV.
Performance Bonuses and Other NHL Player Incentives
Entry-Level Schedule A Bonuses
First-year players can earn up to $850 k for milestones20 goals, 35 assists, top-line ice time. Many two-way ELCs are actually richer than bottom-six one-way deals once these payouts trigger.
35-Plus & Schedule B Bonuses
Veterans aged 35+ may structure low base salaries with hefty performance bonuses: e.g., Corey Perry’s $1.5 m bonus for 10 games played. Cap overages from bonuses roll into next season, so contenders must plan two years ahead.
Creative Carve-outs
- Games-played escalators for injury-prone players.
- Playoff round bonuses to keep regular-season cap hits minimal.
- All-Star nod incentives that double as marketing juice.
These NHL player incentives bridge competing interests: players chase upside, teams guard short-term cap space.
Player Leverage: Choosing Security vs. Upside
Risk Profiles
A two-year, two-way deal offers health insurance literally and figuratively to a 24-year-old fringy winger hoping to play in the NHL. A one-year, one-way pact at the same NHL AAV bets on making waivers unclaimed or earning a call-up from another club.
Agent Tactics
Reps wield comps: My client posted the same numbers as Nick Paul before his one-way extension. They may accept a lower AAV in exchange for a one-way guarantee or tack on a hefty signing bonus to soften a two-way.
Showcase Clauses
Some players push for January conversion clauses if they log 40 NHL games, Year 2 flips to a one-way. Creative but legal under the CBA, these clauses reward good performance without upfront risk for the team.
Front-Office Lens: Cap Flexibility and Depth Insurance
Why GMs Love Two-Way Deals
They’re movable chess pieces. A waiver-exempt prospect on a two-way can shuttle daily, banking cap space while covering injuries.
When One-Way Makes Sense for Teams
- Veteran leadership on affordable AAVs think Zach Aston-Reese at $850 k.
- Blocking rival offers in free agency; players rarely sign a two-way when a competitor flashes one-way security.
- Protecting assets: a one-way may deter claims if the player hits waivers with a $1.9 m ticket.
Ultimately, teams juggle depth charts, escrow forecasts, and owner budgets with every SPC they issue.
Rapid-Fire FAQ: Myths, Waivers, and Cap Geeks Nightmares
- Do one-way contracts require waivers? Waiver rules ignore contract type; only age and pro games count.
- Can a two-way player earn more than a one-way? Yes maxed-out bonuses or extended NHL time can blow past a flat one-way salary.
- Is a one-way deal fully buyout-proof? No. Teams can and do buy out one-way contracts every June.
- Why do veterans sign two-way deals? Market reality. If 32 GMs peg you as depth, security beats unemployment.
- Where can I read the exact CBA clauses? Check Article 11 and Schedule A/B in the latest NHL CBA PDF.
Skate Off With These Power-Play Insights
One-way vs two-way contract debates aren’t about ice time they’re about risk distribution. One-way deals guarantee the money, not the roster spot. Two-way SPCs hand teams cap flexibility while dangling carrot-and-stick motivation for players. Layer in escrow, waivers, and performance bonuses, and every signature becomes a mini-finance thesis.
Ready to parse the next batch of PTOs or mid-season call-ups? Keep this blueprint handy and graduate from armchair GM to legit cap whisperer.