The Edmonton Oilers appear to be in a favorable position regarding their salary cap, according to recent analyses and projections. Several factors contribute to this assessment, including the structure of their current contracts, the rising NHL salary cap, and strategic moves made by the team's management.
One key aspect of the Oilers' cap situation is the presence of several "A-grade" contracts, where players are providing value that exceeds their cap hit. This includes core players like Connor McDavid, Leon Draisaitl, and Zach Hyman. These players are considered to be outperforming their contracts, providing the Oilers with a competitive advantage. Specifically, Zach Hyman is considered a bargain for his contributions to the team. In contrast, some analysts point to Darnell Nurse and Trent Frederic as potentially problematic contracts that carry negative long-term value.
The NHL salary cap is projected to increase significantly in the coming seasons, which will provide the Oilers with more financial flexibility. The upper limit is expected to reach $95.5 million in 2025-26, $104 million in 2026-27, and $113.5 million in 2027-28. This increase is attributed to rising league revenues from media rights deals and other sources. Commissioner Gary Bettman indicated the salary cap for the 2025-26 season was projected to be $92.4 million. The NHL and NHLPA announced that team payroll ranges for the next three seasons would be an Upper Limit of $95.5 million and a Lower Limit of $70.6 million next season.
The Oilers' management has been actively managing the salary cap by shedding unnecessary salary and finding players on good-value contracts. General Manager Stan Bowman has made moves to clear cap space, such as the trade of Evander Kane. They re-signed Trent Frederic and Kasperi Kapanen to new contracts, leaving the team with just over $11 million in salary cap room heading into free agency.
Looking ahead, the Oilers may explore further moves to optimize their cap situation. One potential strategy involves trading a contract to accrue cap space and then making a significant addition at the trade deadline. Mattias Janmark has been mentioned as a possible trade candidate. The Oilers are potentially looking to add a bigger, impactful Top 9 forward.
Currently, the Oilers have approximately $225,834 in projected cap space. Key players under contract for the 2025-26 season include Leon Draisaitl ($14 million), Connor McDavid ($12.5 million), Evan Bouchard ($10.5 million), and Darnell Nurse ($9.25 million). Some anticipate Connor McDavid might sign a shorter-term contract, potentially impacting the team's long-term cap planning.
While the Oilers are generally well-positioned, some challenges remain. The team only has one defenceman (Nurse) signed beyond next season. The Oilers will likely need to address this situation to maintain a strong blue line.
