Ville Koivunen Penguins’ Extension Bad News for NY Islanders

The future looks to have gotten much more expensive for the New York Islanders.

Mar 24, 2026; Pittsburgh, Pennsylvania, USA; Pittsburgh Penguins right wing Ville Koivunen (41) skates with the puck against the Colorado Avalanche during the first period at PPG Paints Arena. Mandatory Credit: Charles LeClaire-Imagn Images / IMAGN IMAGES via Reuters Connect

The New York Islanders are certainly thankful that they are projected to have $40 million in cap space next offseason because their roster is about to get a lot more expensive.

Not only are they preparing a monster extension for defenseman Matthew Schaefer, who is almost certainly going to reset the market, but they are going to have to pay a lot more money to some of their other young restricted free agents too, thanks to the Pittsburgh Penguins.

In a shocking announcement, the Penguins have signed restricted free agent Ville Koivunen to an eight-year contract that will pay him $4 million annually. It is a stunning agreement that will have a trickle-down effect on the rest of the league, especially a team like the Islanders.

Koivunen was a second-round pick, No. 51 overall, in the 2021 NHL Draft. He has 47 NHL games played on his resume with 14 total points; two goals and 12 assists as a right winger. That production has been rewarded with not only a long-term contract, but a healthy raise to $4 million annually.

Islanders will have to pay to retain their restricted free agents

Mar 21, 2026; Montreal, Quebec, CAN; New York Islanders left wing Emil Heineman (51) looks on during warm-up before the game against the Montreal Canadiens at Bell Centre. Mandatory Credit: David Kirouac-Imagn Images / IMAGN IMAGES via Reuters Connect

Even with the cap on the rise, this is a major commitment to make to a player who has yet to truly prove himself at the highest level. Developing into a middle-six forward would create plenty of value for Pittsburgh.

Forecasting the future for New York, it has been preparing to essentially give a blank check to Schaefer whenever extension talks commenced. However, whatever they were budgeting for Emil Heineman and Simon Holmstrom has likely increased in price as well.

There were plans for the Islanders to extend both of their Swedish wingers in due time. But that timeline could very well have changed because, with the progression each of them is making, they are only going to get more and more expensive the longer it takes to work out an extension.

Heineman, who is 24 years old, which is only one year older than Koivunen, just scored 23 goals this past season and recorded 31 points. Right now, he and his agent can point to the deal the Penguins gave their young winger and ask for at least $1-2 million more annually.

The Penguins have re-signed restricted free agent forward Ville Koivunen to an eight-year contract.

— Pittsburgh Penguins (@penguins) August 6, 2026

That is something New York would have to strongly consider. Because if he builds upon the momentum created last season, his first with the Islanders, and scores 25+ goals, he is going to be in a position to command even more money.

Over the last two seasons, Holmstrom has solidified his role as a key forward on the club. He has been productive with 86 points recorded, scoring 39 goals to go along with 47 assists. His plus/minus ratio has been positive in three straight campaigns. 25 years old, he isn’t even in his prime yet. 

Both players are more established in the NHL than Koivunen is, which will assuredly drive the price tag up. Eight-year deals are already risky for franchises, and the AAV for the Islanders duo has certainly gone up thanks to Pittsburgh.