What is offering sheet?

An offer sheet is a contract offered by an NHL team to a restricted free agent on another team. The offer sheet is normally used to lure a player from his current team and convince him to sign with a new one. The player's current team has the right to match the offer sheet, which allows them to keep the player. If they choose not to match the offer sheet, the player can sign with the new team and the new team must provide compensation to the player's old team. The compensation depends on the salary offered in the offer sheet and is based on a formula set by the NHL. Offer sheets are commonly used to obtain top-level players, but they can also be used to acquire young, up-and-coming players who may not have achieved their full potential yet.