NY Islanders Expected To Have Plethora of Cap Space Next Summer

Despite their cap situation not being great right now, the New York Islanders are expected to have a lot of room next summer.

Mar 21, 2026; Montreal, Quebec, CAN; View of a New York Islanders logo on a jersey worn by a member of the team during warm-up before the game against the Montreal Canadiens at Bell Centre. / IMAGN IMAGES via Reuters Connect

With free agency underway, the New York Islanders were very busy on the first day. 

It was a pretty crazy start to free agency around the league. There was a ton of player movement throughout the day and a lot of trades as well. With the salary cap in the league going up, this was to be expected, and day one certainly didn’t disappoint. 

While the Islanders didn’t have a ton of cap space to use, they did address some needs. The addition of Matias Maccelli was certainly a good move for the team. The young forward signed a surprisingly cheap one-year deal, and he will be a top-nine forward for the team with some nice upside. 

However, while the addition of Maccelli was a good one, the team did end up losing Anders Lee to the Utah Mammoth. After the two sides were unable to reach a deal before free agency, this seemed like it was going to happen. Unfortunately, it will be the end of an era on Long Island for the captain. 

It is worth noting that, especially when it came to negotiations with Lee, the team was not willing to commit to players long-term. The plan for the franchise is to seemingly have a lot of cap flexibility. 

Islanders Set Up Well 

Feb 26, 2026; Montreal, Quebec, CAN; New York Islanders left wing Ondrej Palat (81) skates against the Montreal Canadiens during the first period at Bell Centre / IMAGN IMAGES via Reuters Connect

While the cap situation right now doesn’t look great for the team, some of the bad contracts will be coming off the books. According to PuckPedia, New York is projected to have $42 million in cap space for next summer, which is certainly a nice number to be at. 

Of the players who will be coming off the books, two of the most notable are Kyle Palmieri and Ondrej Palat. These two will account for over $10 million coming off the books, and the Palat contract especially is one that doesn’t look to be a good one coming into next season. 

With a chance to make the playoffs, the Islanders might have gotten a bit too aggressive in pursuing the veteran forward. He did not perform well for New York, and the team will be hoping he has a bounce-back campaign. 

However, while the team might have gotten aggressive at the trade deadline last year, it does seem like they are thinking about the future a little bit more going forward. That is probably the wise decision, and the team should be competitive with the roster that they have.