This puts Parenteau's salary cap hit at $4 million per season, which is well within the reach of the Avalanche.
According to Capgeek.com, the Avalanche still have a little bit more than $21 million to spend before they hit the $70.2 million cap ceiling.
The big question that comes with pretty much every signing in free agency is: did they get a good deal, or did they overpay?
Let's take a look at another free agent that the Avalanche signed from their own team just a few weeks earlier, David Jones.
Jones received the exact same contract as P.A. Parenteau, so who better to use when making a comparison?
Jones earned his contract after overcoming some injury issues early in his career. Over the past two seasons, Jones played in 77 and 70 games respectively, but it's his numbers that tell the real story.
Two seasons ago, Jones scored 27 goals and had 18 assists for 45 points.
Jones was up and down last year, but was still able to score 20 goals and 37 points.
Parenteau only has four seasons of NHL experience, though his last two certainly stand out on their own.
In his first year with the Islanders, Parenteau had 20 goals and 33 assists for 53 points.
Last season, Parenteau increased his point output despite scoring less goals: he had 18 goals and 49 assists for 67 points.
Add in the fact that Parenteau missed only three games over the past two seasons and also contributed 217 hits, and the young right-winger has really shown his value.
The fact that Parenteau outperformed Jones in such a way and is still being paid the same amount of money shows great value.
Kudos to Greg Sherman for getting this deal done.