The economics of Connor McDavid’s 2026-27 contract negotiation

Rising salaries and McDavid’s current value

Connor McDavid is 29 and recently won his fifth Ted Lindsay Award as the most outstanding player in the league. He recorded 138 points last season, including 48 goals, and led the NHL with 133 points. His current linemates are Vasily Podkolzin and Matthew Savoie. McDavid signed a two-year extension for $25 million that kicks in for the 2026-27 season, but his $12.5 million average annual salary now trails several other stars in the league. Cale Makar signed an eight-year extension with a $20.4 million average annual value. Other stars like Macklin Celebrini, Leo Carlsson, and Connor Bedard signed deals worth $18.8 million, $18 million, and $15 million respectively. Kirill Kaprizov earns $17 million annually, and Quinn Hughes also earns more than McDavid. By 2027-28, at least 10 NHL players will earn an average annual salary equal to or higher than McDavid’s. Even Bowen Byram matches McDavid’s direct deposit in 2027-28. McDavid provided a hometown discount on his current deal to assist management with salary cap issues. He earned six more points than Nikita Kucherov this past season. Five Sacramento Kings players make more than McDavid.

Draisaitl’s deal and roster depth concerns

Leon Draisaitl signed an eight-year, $112 million extension with an average annual value of $14 million. He finished last season with 106 points, including 41 goals and 65 assists. Draisaitl was the third overall pick in 2014 and has recorded 850 points in 10 seasons. He has won a Hart Trophy and an Art Ross Trophy and positions himself ahead of Auston Matthews, who earns $13.25 million. Draisaitl’s negotiation was a negotiation between McDavid and Draisaitl. Draisaitl’s presence in Edmonton requires a heads-up from McDavid. You know the stars command the largest checks. The Oilers face a severe financial squeeze after committing over $45 million to just three superstars: McDavid, Leon Draisaitl, and Evan Bouchard. This roster configuration makes replacing production difficult as veterans like Zach Hyman, Ryan Nugent-Hopkins, and Mattias Ekholm age. The Oilers lost to the Anaheim Ducks 4-2 in the first round of the playoffs. The team signed Jeff Skinner and Viktor Arvidsson to bolster the roster for another run. The franchise aims to win its first Stanley Cup since 1993.

The 20 percent cap ceiling

The NHL and NHLPA agreement provides specific salary cap increases for the next few seasons. The cap for 2025-26 is projected at $92.4 million. The increase for 2026-27 is $8.5 million, while the 2027-28 increase is $9.5 million.

A league-maximum contract is 20 percent of the salary cap. For the 2026-27 season, this amount is $20.8 million. For the 2027-28 season, the 20 percent maximum is $22.7 million. How will management balance McDavid’s demand for a record deal against the need for roster depth? McDavid could sign a $120 million contract over eight years if he takes a $15 million cap hit. A $15.5 million cap hit would tie Alex Ovechkin’s $124 million contract.