In the last few days, there has been much reaction to Edmonton Oilers star, Connor McDavid, having signed a two-year contract extension for $12.5 million per season. That’s a lot of money, but CMcD arguably left as much as $7.5 million per season on the table.
Some sports analysts have embraced the view that CMcD is to be congratulated for “doing the right thing” by leaving money on the table to be used to improve his team’s chances of winning a Stanley Cup. I haven’t heard too many people calling this what it is… the greatest achievement of NHL Commissioner Gary Bettman’s career.
A Little NHL History
Until 2005, NHL teams operated on an “open market value” basis when signing players (stars and grinders alike). In effect, they spent what they felt the player was worth and what they were willing to pay. Because, you see, the NHL did not yet have a salary cap; it was the only North American professional sports league that had no luxury tax, very limited revenue sharing and no salary cap.
For decades, that arrangement had worked dramatically to the owners’ advantage. They held the upper hand in a big way in salary negotiations until at least 1967, when the NHL Players Association was formed.
Annual salaries in the NHL in the 1960s had been in the range of $15,000-$20,000 with star players earning annual bonuses in the range of $25,000. Salaries weren’t even regularly disclosed; there is a story about Gordie Howe finding out – after the fact – that he was only the third highest-paid player on the Detroit Red Wings despite being the face of the franchise.
After the NHLPA’s arrival, in 1971 Bobby Orr signed the NHL’s first $1 million contract ($200 thousand per year for 5 years). In 1973, Guy Lafleur also signed a $1 million contract, which seemed astronomical to me at the time ($100 thousand per year for 10 years).
Gradually, the dynamic of the team owners holding all the cards in salary negotiations was changing. Perhaps due to league expansion, perhaps due to the availability of television revenues, or perhaps for other reasons entirely, many team owners became their own worst enemy, over-spending on players to obtain the talent they thought they needed to win the Stanley Cup.
Along Came A Salary Cap
All that became history when, for the 2005-06 season (after a year-long labour dispute which cost the league and players an entire season), the NHL (under Gary Bettman) convinced the NHLPA to accept a salary cap.
In effect, the salary cap served to save owners from themselves, imposing a limit on how much they could spend on player salaries each year. The salary cap (which fluctuates from year to year) is tied to league revenues; it’s a built-in safety harness for imprudent team owners.
Kirill and Connor
Fast forward to October of 2025, and we’ve had two significant developments. Kirill Kaprizov of the Minnesota Wild (they’ll always be the North Stars to me!) signed the richest contract in NHL history, for $17 million per season. Who is Kirill Kaprizov, you ask? He’s an indisputably talented player who won the Calder Trophy as rookie of the year but whose NHL team has never won anything.
The second development of note was that CMcD’s contract with the Oilers was expiring. By comparison, CMcD – arguably the best player in the world (though, paradoxically, maybe not the best player on his team) – has to be worth $20 million per season. He (with help) has taken his team to the Stanley Cup final two years running and I don’t think there is a serious analyst around the game of hockey who wouldn’t say he’s worth at least 18% more than Kaprizov.
But, CMcD didn’t sign for $20 million per season. In a truly magnanimous gesture, he left roughly $7.5 million per season on the table for 2 seasons. That’s $15 million smackers he just gave away… what I wouldn’t give to be on this guy’s Christmas list.
Gary Bettman – A Savvy Guy
So, you ask, why is league Commissioner, Gary Bettman, the happiest and proudest man in the world with this development? Because, in the span of 20 years since the salary cap was introduced (under his watch), he’s taken the league from owners financing their own team’s success to players now doing it (at least in part) for them.
Other players have, of course, signed so-called “team friendly” (which really means “owner friendly”) deals over the years – Brad Marchand comes to mind as a guy who was criminally underpaid during the entirety of his prime playing years – but to my knowledge nobody has done so on this scale. $7.5 million per season is a lot of dough to leave behind, even for a star player like CMcD.
It’s worth noting two things, here, when we are tempted to conclude that CMcD, after all, is very wealthy and really doesn’t need the money, anyway.
First, his career could end at any moment. Sure, he’s only 28 and could well play for another decade. But, he could also suffer a catastrophic, career-ending injury tomorrow. It’s axiomatic that professional sports careers are brief and players have to make hay while the sun shines.
Second, in exchange for his (total) $15 million investment in the Edmonton Oilers’ well-being and Stanley Cup hopes, CMcD receives nothing of certainty in return. All he gets is the hope and the possibility that his donation will produce a Cup win for his Edmonton Oilers. Lots of good teams fail to win the Cup, each year, and there is no guarantee his investment will even get the Oilers to the playoffs.
Ultimately, the reality is that CMcD is spending money out of his own pocket to improve his employer’s chances of business success. That’s money which, in the absence of a salary cap, would have to come from his employer’s bank account.
And that’s the magic of Gary Bettman’s salary cap world; he’s performed the ultimate sleight of hand for a professional sports league executive, with the result that the employees are financially supporting the employers. Well played, Gary, well played.
NHLPA, you’d better take a close look at what’s going on out there in hockey land. Yes, I know, overall hockey salaries are only going up and up and up, there are ever more teams in the league and hence more jobs, and undoubtedly your members’ lot is far better, generally, than it’s ever been.
But, when your members start paying BIG sums out of their own pocket to prop up their team’s chances of success, you’ve been snookered. Big time. And one Gary Bettman (not to mention the owners he serves) is laughing all the way to the bank.
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This item is provided for general information purposes only and is not intended to be relied upon as legal advice. Informed legal advice should always be obtained about your specific circumstances.