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The Significance of Jack Hughes' Contract

Date: September 7, 2022

By: Jonathan Heite

Jack Hughes of the New Jersey Devils.

Ed Mulholland/USA TODAY Sports

On Nov. 30, 2021, the New Jersey Devils made one of the most important moves in recent franchise history.

The team gave star center Jack Hughes an eight-year, $64 million extension during the final year of his entry-level contract (three years), which carries an annual average salary (AAV) of $8 million. This will run until the 2029-30 season, and after already showcasing his elite talent throughout his young NHL career, this deal should age like fine wine over the next eight seasons.

General manager Tom Fitzgerald made this choice with a few advantages in mind, which will all begin to show over the next few years. Locking up Hughes on a team-friendly contract before he reaches another level is great asset management, and this will give the Devils more cap flexibility in the future when their contention window officially opens.

Hughes, the 2019 No. 1 overall pick of the U.S. National Development Team, is coming off a season cut short due to injury, but one where he still collected 56 points (26 goals and 30 assists) in 49 games. The 21-year-old notched 21 points (7 goals and 14 assists) in 61 games as a rookie, and 31 points (11 goals and 20 assists) in 56 games in his second season, but Fitzgerald made this deal for the long run.

Hughes has already carved out his role on a team looking to make it back to the postseason for the first time since 2018. As he begins to reach superstar territory, some players around the league, that may be nowhere near the caliber player Hughes is, could be on much more expensive contracts.

This trend has been noticeable lately around the league, especially in Ottawa, as the Senators recently re-signed star center Tim Stutzle to an eight-year, $66.8 million extension ($8.35 million AAV). The deal will begin after the 2022-23 season, but both situations are similar. These are two teams looking to get back into the playoffs, and they are ensuring their high-profile young talent are locked up long-term before their asking prices become super high.

Stutzle, the 2020 No. 3 overall selection by Ottawa, has put up the most points from his draft class so far, as he is coming off 58 points in 79 games in a successful sophomore season. He only put up 29 points in 53 games his rookie campaign, but just like Fitzgerald, GM Pierre Dorion is betting on Stutzle’s high upside.

While Stutzle and Hughes are different players, the last three-five years of their respective contracts are where the contracts will be most justifiable, especially if they reach their high ceilings and as the salary cap continues to increase.

These medium-risk, high-reward negotiations have implications for not only the Devils, but other young players around the league who will be looking for huge extensions after their entry-level deals are completed.

For example, the Detroit Red Wings have players like Lucas Raymond and Moritz Seider (already a Calder Trophy winner), who have already shown flashes of greatness in a short sample size and look to be franchise-level talents. While they are still under their entry-level contracts until 2024-25, GM Steve Yzerman could look to extend them earlier to similar team-friendly deals.

Across the Hudson, the New York Rangers will have a difficult offseason next summer trying to sign first-round talent players like Alexis Lafreniere, K’Andre Miller, and Filip Chytil to long-term extensions with limited cap space. While the Rangers are in a unique contention window compared to the aforementioned teams, with a mix of young talent and veterans in their prime, GM Chris Drury will most certainly look to re-sign these players sooner rather than later.

For the Devils, while the team is a few years away from having to worry about future franchise players’ contracts like Luke Hughes and Simon Nemec, maybe Fitzgerald will take a similar approach.

Betting on long-term upside for younger players seems to be where younger, rebuilding teams are trending towards in today’s league. In the meantime, New Jersey is in a great spot with Hughes, as he will be a Devil for a long time and will continue to evolve into one of the league’s brightest young stars.

Jonathan Heite is an Assistant Sports Director for WSOU Sports and can be reached at jonathan.heite@student.shu.edu.

Posted in: Sports, New Jersey Devils, NHL

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