Contract negotiations for McDavid will start “whenever they’re ready,” The Oilers’ general manager says

In the world of professional hockey, few players are as pivotal to their franchises as Connor McDavid is to the Edmonton Oilers. As the undisputed face of the franchise, McDavid’s contract negotiations have become one of the most significant topics in the NHL, not only for the Oilers’ immediate future but also for the league’s broader landscape. Recently, Oilers general manager Ken Holland stated that negotiations with McDavid will start “whenever they’re ready,” signaling a patient and strategic approach by the organization. This stance underscores the franchise’s commitment to securing an extension that aligns with both McDavid’s value and the team’s long-term plans.

Context of McDavid’s Contract Status

Connor McDavid’s current contract, signed in 2018, is a seven-year deal worth an average annual value (AAV) of $12.5 million. Signed before the 2018-19 season, this contract was considered a record-breaking deal at the time, reflecting McDavid’s status as the league’s top player and a generational talent.

However, as his contract nears expiration at the end of the 2023-24 season, negotiations for an extension are inevitable. Given McDavid’s extraordinary talent, leadership, and impact on the franchise, the negotiations are not just about dollars and years but also about establishing a shared vision for the team’s competitive trajectory.

The Significance of Contract Negotiations

McDavid’s extension is arguably the most critical deal the Oilers will undertake in the foreseeable future. His presence on the roster directly influences team performance, fan engagement, sponsorship opportunities, and the franchise’s overall valuation.

From the Oilers’ perspective, securing McDavid beyond the current deal ensures stability and continuity. It allows the organization to build around him, develop supporting talent, and craft a roster that maximizes his abilities. Conversely, McDavid’s own interests include securing a contract that reflects his elite status, provides long-term security, and aligns with his personal and professional goals.

The “Whenever They’re Ready” Approach: Strategic Patience

Ken Holland’s statement that negotiations will commence “whenever they’re ready” demonstrates a strategic patience, which can serve multiple purposes:

1. Allowing the Player and Agent to Focus on Hockey
   By not rushing negotiations during the season or postseason, the Oilers give McDavid space to focus solely on his performance and team success. This approach prevents distractions and allows negotiations to unfold organically when both sides are prepared.
2. Monitoring Market Conditions
   The NHL’s salary cap landscape and the league’s overall economic environment can influence contract terms. By waiting, the Oilers can assess how other major negotiations and league-wide trends evolve, ensuring they approach McDavid’s extension at an optimal time.
3. Assessing Team Performance and Organizational Needs
   The team’s competitive window, roster development, and cap flexibility are factors that can influence the timing and structure of the deal. Patience allows the franchise to finalize its core roster, make strategic moves, and craft a contract that aligns with their vision.
4. Avoiding Premature Negotiations
   Negotiating too early or under pressure could lead to suboptimal terms. The Oilers likely prefer to enter negotiations from a position of strength, once McDavid and his representatives see the team’s direction and roster stability.

The Key Factors in McDavid’s Contract Negotiation

Several factors will influence the scope and terms of McDavid’s next contract, including:

1. Contract Length and Cap Hit
The NHL has seen a trend toward longer-term deals with higher cap hits for elite players. The Oilers might consider a contract ranging from 8 to 10 years to ensure McDavid’s salary reflects his ongoing dominance and to lock him in for the prime years of his career.

2. Salary Structure
A significant component will be the base salary, signing bonuses, and potential incentives. Given the salary cap’s fluctuations, the team and agent will negotiate terms that balance immediate cap implications with future flexibility.

3. Cap Implications and League Trends
With the salary cap expected to rise modestly in coming years, McDavid’s new deal could push into the $13-15 million AAV range, or higher, reflecting his unique impact on the game.

4. Performance Incentives and Bonuses
Contracts for star players often include incentives for awards, playoff performance, or statistical milestones, aligning the player’s incentives with team success.

5. NMC or NTC Clauses
The inclusion of no-movement or no-trade clauses can be significant, especially in long-term deals, affecting the team’s flexibility.

The Broader NHL Contract Landscape

McDavid’s negotiations will also be viewed through the lens of recent NHL contracts for comparable players:

• Nathan MacKinnon: Signed an 8-year deal in 2022 worth an AAV of $12.6 million.
• Connor McDavid (current): Signed a 7-year deal at $12.5 million AAV in 2018.
• Leon Draisaitl: Signed a 8-year extension worth approximately $8.5 million AAV in 2021.
• Auston Matthews: Signed an 8-year extension at $13.25 million in 2022.

These figures illustrate that elite centers and players of McDavid’s caliber command contracts in the $12-15 million range, with some variability based on team strategies and negotiations.

The Franchise’s Strategic Priorities

The Oilers’ approach to McDavid’s extension will likely balance several priorities:

• Cap Management: Ensuring the team remains flexible to build around McDavid and support other core players.
• Maintaining Competitive Window: Locking in their franchise player while not sacrificing future flexibility.
• Aligning with Player Expectations: Meeting McDavid’s desire for fair compensation and long-term security.
• Building a Competitive Roster: Using the new contract’s cap hit as a foundation for roster moves, free agency, and development.

Potential Challenges and Negotiation Dynamics

While both sides want to reach an agreement, some challenges may arise:

• Cap Limitations: If the salary cap plateaus or decreases, negotiations for a higher AAV could face resistance.
• Market Value vs. Team Budget: Balancing McDavid’s worth with the team’s financial strategies.
• Player’s Personal Goals: McDavid’s desire for security, leadership opportunities, and perhaps involvement in franchise decisions.
• Pandemic and League Economics: Ongoing economic impacts from COVID-19 and league revenue fluctuations can influence salary cap projections and negotiations.

Implications for the Oilers and NHL

An extension for McDavid would have ripple effects:

• Franchise Stability: Securing McDavid long-term reinforces the Oilers’ status as a competitive team.
• League Dynamics: The deal would set a benchmark for future contracts of elite players.
• Market Confidence: Demonstrates the Oilers’ commitment to building around their star and investing in their future.
• Fan Engagement: Reassures fans that the organization prioritizes their best player and remains committed to success.

 Patience as a Virtue in Contract Negotiations

Ken Holland’s statement that negotiations will start “whenever they’re ready” reflects a nuanced, strategic approach to a pivotal contract. It emphasizes respect for the player’s process, a focus on team stability, and an understanding of the broader league dynamics.

While fans and media await news of an impending extension, the reality is that such negotiations require patience, precision, and alignment of interests. Both the Oilers and McDavid’s camp recognize the significance of this deal — one that could define the franchise’s trajectory for the next decade.

In the coming months, as the league’s economic landscape stabilizes and the team’s roster evolves, discussions will gain momentum. The ultimate goal remains clear: securing Connor McDavid’s services for the long term, ensuring the Oilers remain a Stanley Cup contender, and cementing McDavid’s legacy as one of the greatest players in NHL history.

Until then, the Oilers’ leadership will monitor, evaluate, and prepare for negotiations, confident that when the moment arrives, they will be ready to craft an agreement that reflects McDavid’s unparalleled impact on the game and the franchise.