Winners and Losers of Cale Makar's Historic Contract Extension with Avalanche
After rumors heated up over the weekend, the Colorado Avalanche and Cale Makar finally reached an agreement on a long-term contract extension, with the talismanic defenseman signing an eight-year, $163.2 million deal that carries an eye-watering $20.4 million AAV.
That big-money pact has made Makar, 27, the highest-paid player in NHL history, which will more than double his current cap hit of $9 million when the extension kicks in on July 1, 2027.
This move by Makar and the Avalanche will undoubtedly have an impact on future contract negotiations throughout the league, especially as the NHL's salary cap continues to increase. For some, that is welcome news, and for others, not so much. So, who won and lost from the historic contract signing?
Winner: Quinn Hughes
There is perhaps nobody in the NHL who will indirectly benefit more from Makar's new contract than Minnesota Wild defenseman Quinn Hughes, who, like Makar, is heading into a contract year and has been eligible to sign an extension as of July 1.
The main obstacle here is whether or not Hughes is holding out to join brothers Jack and Luke in New Jersey with the Devils; Luke is tied down in New Jersey until 2032, while Jack's contract with the Devils runs until 2030.
Regardless of where he ends up, Quinn Hughes is going to rake in some serious dough, especially if he ends up taking a shorter-term contract with the Wild to line himself up with the expiry of Jack's contract.
Loser: Minnesota Wild
On the flip side of this coin, the Wild just got put in a serious bind by Makar and the Avalanche. By getting this deal done, the Avalanche have set the bar for their Central Division rivals, and one that could ultimately cost them a superstar defenseman in Hughes.
Hughes, 26, is in the last year of his current contract, carrying a $7.85 million cap hit ahead of unrestricted free agency in 2027. The problem for GM Bill Guerin in the Wild is that they are already not a particularly deep team, with center depth in Joel Eriksson Ek, Danila Yurov, Ryan Hartman, and Yakov Trenin.
Forward Marcus Johansson, who scored 49 points for the Wild last season, signed with the SHL's Farjestad BK this offseason, and Minnesota will have to make ends meet with additions, such as bruiser Michael McCarron, veteran Swiss Army knife Blake Coleman, and an unproven former KHL standout in Maxim Shabanov.
The Wild have just $1 million in cap space to make further additions to the roster this season, and if they can't compete with what they have, Hughes has no incentive to stay in Minnesota. And what do the Wild do in the future if they are paying Hughes north of $20 million annually, nearly three times his current cap hit?
Winner: Leo Carlsson
Earlier this offseason, a 21-year-old Leo Carlsson briefly became the NHL's highest-paid player when he signed a five-year, $90 million ($18 million AAV) offer sheet with the Philadelphia Flyers on July 3. As a young player who had yet to score 30 goals or 70 points in a single season, many questioned whether Carlsson was deserving of such a lofty price tag.
The reality was that the Flyers were paying Carlsson a number they felt they needed to give themselves a chance to have a successful offer sheet and force the Anaheim Ducks to consider not matching the contract. That didn't happen, but in either scenario, Carlsson got his money.
Just over three weeks later, on July 29, Macklin Celebrini signed a five-year, $94 million ($18.8 million AAV) extension with the San Jose Sharks, overtaking Carlsson as the highest-paid player in the NHL by a nominal margin on the heels of a 115-point campaign.
Now that both Celebrini and Makar have overtaken Carlsson, the Swede's inflated contract will continue to look less and less anomalous over time, which will undoubtedly help take pressure off the youngster's shoulders as he continues to ascend towards his full potential.
Winner: Connor McDavid
Arguably the most talented player in hockey history, Edmonton Oilers superstar Connor McDavid will be a free agent again in just two years.
McDavid, 29, currently carries a $12.5 million cap hit, and speculation has grown over the last few years as to whether No. 97 will remain in Edmonton if the team cannot win the elusive Stanley Cup.
If and when he hits free agency, McDavid will be able to ask for whatever he wants from any NHL team, and that number will surely exceed Makar's $20.4 million AAV by a healthy amount. Taking as much money as possible is counterproductive to creating a Stanley Cup-winning environment, but when the time comes, McDavid will be offered carte blanche.
Loser: The Other 31 NHL Teams
Indeed, Makar signed the contract and committed his future to the Avalanche for the foreseeable future, but did so, leaving money on the table. In today's sports world, that is an honorable choice.
Makar won't be a free agent again until 2035, when he'll be 36 years old. Had Makar signed a shorter deal with the Avalanche, a four- or five-year deal, he could have secured himself one last lucrative payday. Instead, that opportunity is unlikely to come around again.
Now, the only time the other 31 NHL teams will have the chance to sign the future Hockey Hall of Famer will be in the twilight years of Makar's career. That time will come well after Makar's new extension with the Avalanche raised the price of talented defensemen across the league.
