The economics of McDavid’s 2026 contract extension
Connor McDavid signed a two-year extension with a $12.5 million AAV to help Edmonton manage the salary cap. This deal follows Leon Draisaitl's $14 million cap hit precedent and aims to maintain roster competitiveness under Jeff Jackson's management strategy.
McDavid signs team-friendly deal
Connor McDavid signed a two-year contract extension with an average annual value of $12.5 million USD ($17.1 million CAD) on Monday. This agreement follows his July 1 eligibility. McDavid is 28 years old. He holds five Art Ross Trophies, three Hart Memorial Trophies, a Conn Smythe Trophy, a Rocket Richard Trophy, and four Ted Lindsay Awards. He could have signed for up to eight years or for 20% of the salary cap. Stan Bowman spoke with Judd Moldaver to conclude the negotiations. Bowman noted the dollar amount was McDavid’s choice and not part of the formal talks. I judge this deal as a massive win for the front office because McDavid accepts a lower salary to provide a window for a Stanley Cup. McDavid is entering his 11th season and will be 31 at the end of this extension, meaning the decision to sign a shorter deal allows him to maintain leverage while helping the organization stay competitive. His $12.5 million AAV sits $100,000 below Nathan MacKinnon and $500,000 above Mikko Rantanen. He accounts for 13% of the cap this year, 12% next year, and 11% in 2027-28.
Cap management and the Draisaitl precedent
The NHL salary cap dictates the Oilers’ movement. For the 2026-27 season, the upper limit reaches $104 million. In 2027-28, the limit climbs to $113.5 million. Leon Draisaitl signed an eight-year, $112 million contract that carries a $14 million AAV. He is 31 years old during the 2026-27 season. His $14 million cap hit represents 13.46% of the $104 million upper limit.
| Player | 2026-27 Cap Hit | 2026-27 Cap % |
|---|---|---|
| Connor McDavid | $12.5 million | 13.0% |
| Leon Draisaitl | $14.0 million | 13.46% |
McDavid and Draisaitl carry a combined cap hit of $26.5 million for the next two seasons. Draisaitl earns a $1,000,000 base salary and a $15,500,000 signing bonus in 2026-27. He earns $16.5 million in total cash for that season, bringing his cumulative cash to $33,000,000. In 2027-28, his cash total reaches $49.5 million. His $112 million total is guaranteed. This contract ties him to Edmonton through the 2032-33 season.
Management’s roster workload
Jeff Jackson manages hockey operations and reports to Daryl Katz. Jackson was a lawyer for eight years and a former player for teams like the Toronto Maple Leafs and Chicago Blackhawks. He worked with McDavid as an agent. The Oilers started this season 3-0-0. I see a major issue with the team’s lack of depth. McDavid averages 23 minutes per game, while Draisaitl averages closer to 25 minutes. This workload is high. The Oilers scored 14 goals in three games, and one or both stars were on the ice for the vast majority of them. The team outscored opponents 10-3 when one or both stars played in the first three games, but they got outscored 4-6 when both sat. Ryan Nugent-Hopkins carries a minus-20 rating in all situations this season. You should know that the roster relies heavily on players like Leon Draisaitl, Ryan Nugent-Hopkins, and Evan Bouchard to stay competitive. Even with a 3-0 start, the team looks fragile when the stars sit. Can the roster maintain this pace if the workload for McDavid and Draisaitl decreases?
