A hockey contract is evaluated in a number different ways.

There’s basic and advanced statistical production, intangible leadership, impact on wins and losses and community value.

Just ask Titans fans about Derrick Henry.

This dynamic isn’t all that different inside the walls of an NHL franchise. They have their own form of contract evaluation. And while value to the community and serial winning should be taken into account when offering contracts, a front office operates in a far more analytical (and cutthroat) way.

Does this cap hit add value to the team or not?

This isn’t about market value — perceived or otherwise — or even about rating the quality of the player. It’s about the quality of the contract.

Every team has their own formula to pinpoint value for each position and then subsequently uses that formula to evaluate dollar figures.

Lower Broad Hockey spoke to a former NHL employee who is working with a group of current hockey-ops professionals to build a formula that places a value on each position.