"Bigger problems are coming": NHL analyst highlights cap management issues for Oilers after Leon Draisaitl's record $112M extension

By Evan Bell

Modified Sep 05, 2024 17:57 GMT

This week, the Edmonton Oilers and Leon Draisaitl agreed to an eight-year extension worth $112 million, which will see the star forward earn $14 million per year, the biggest cap hit in NHL history. The extension takes effect from the 2025–26 season and will keep Draisaitl under contract until the end of the 2032–33 season, at which point he will be around 36.

While Draisaitl is on an incredibly team-friendly deal that will see him earn $8.5 million for the 2024-25 season, that's all about to change. As a result, many are wondering what the deal could mean for the Oilers going forward.

With other key players such as Connor McDavid poised for lucrative extensions of their own, the Oilers could wind up in big trouble, a sentiment shared by Toronto Star analyst Dave Feschuk.

"Even bigger problems are coming. This is where it gets difficult for executives. NHL orthodoxy gives a team in this position precisely two options: Pay the freight or get even worse. Never mind that paying the freight means that building a winner gets even more difficult," Feschuk wrote on Thursday.

Currently, Connor McDavid's contract, which pays him $12.5 million per season, accounts for 14.20% of the team's cap.

Once Draisaitl's $14 million-per-year contract kicks in, the duo will account for upwards of 30% of the team's cap. That percentage will then go up once McDavid inks his own extension.

Leon Draisaitl speaks about Connor McDavid's future after signing historic extension with Edmonton Oilers

The dynamic duo of Leon Draisaitl and Connor McDavid have been one of the best duos in the league. The pair have continued to impress, taking the franchise to new heights with their Stanley Cup final appearance last season.

Although the team came up short of their ultimate goal, the expectation has been that Draisaitl and McDavid are a package deal. Had Draisaitl opted to part ways with the franchise, the expectation was that McDavid could wind up exploring other options as well.

With the Oilers and Draisaitl reaching terms on an extension, the focus shifts to McDavid. On the heels of him and the team finalizing an extension, Leon Draisaitl spoke with Chris Johnston of The Sports Network to discuss McDavid's future.

"Connor's going to do what's best for him, right? That's just the way this works and it's supposed to work that way. I did what I thought was best for me personally,” Draisaitl said.

McDavid has two years left on his contract, so extension talks are unlikely to take place until next summer, when he will enter the final year of his term in the 2025-26 season.