Salary Cap Deep Dive: New York Islanders

Navigating the salary cap is one of the most important tasks for a front office.  Teams that can avoid total cap chaos by walking the tightrope of inking players to deals that match their value (or compensate for future value without breaking the bank) remain successful.  Those who don’t often see struggles and front office changes.

PHR will look at every NHL team and give a thorough look at their cap situation for the 2025-26 season.  This will focus more on players who are regulars on the roster versus those who may find themselves shuttling between the AHL and NHL.  All cap figures are courtesy of PuckPedia.  We’re currently covering the Metropolitan Division, next up are the Islanders.

New York Islanders

Current Cap Hit: $89,368,333 (below the $95.5MM Upper Limit)

Entry-Level Contracts

D Isaiah George (two years, $838.3K)
D Matthew Schaefer (three years, $975K)
F Maxim Shabanov (one year, $975K)

Potential Bonuses
George: $80K
Schaefer: $3.5MM
Shabanov: $3.5MM
Total: $7.08MM

The Islanders were the successful team out of a field of money to sign Shabanov out of Russia.  One of the top scorers in the KHL last season, it’s fair to say they’ll be counting on him to be at least a secondary producer this year.  In doing so, he could have a shot at hitting some of his ‘A’ bonuses of which he has four at $250K apiece.  Notably, Shabanov will be arbitration-eligible next summer which will put some extra emphasis on the upcoming season.

Schaefer was the number one pick in the draft back in June despite missing most of the season due to injury.  By signing his entry-level deal, the NCAA route is off the table so it’s the NHL or junior hockey for him.  If he stays the full year and becomes a top-four piece, some of his four ‘A’ bonuses will be achievable as well.  It’s not normal to put an ‘if’ in front of a number one pick playing in the NHL right away but with Schaefer, it’s far from a given.  George didn’t look out of place in 33 games with the Isles last season.  His situation may be tied to Schaefer making the team or not but it stands to reason he’ll at least see some NHL action again, allowing him to reach some of his ‘B’ bonus for games played.  George is trending toward a low-seven-figure bridge deal two years from now.

Signed Through 2025-26, Non-Entry-Level

D Adam Boqvist ($850K, RFA)
D Tony DeAngelo ($1.75MM, UFA)
F Marc Gatcomb ($900K, RFA)
F Anders Lee ($7MM, UFA)
F Jean-Gabriel Pageau ($5MM, UFA)
G David Rittich ($1MM, UFA)

After a tough 2023-24 campaign, Lee bounced back last season with his highest point total since 2017-18.  He finished second on the team in points which is more like what they expect from their captain.  However, Lee will be entering his age-36 year on his next deal and teams have gotten stingier with contracts given to players that age in recent years.  Even a three-year agreement might be deemed too risky unless it was for a big cut price-wise.  A two-year pact could be doable at a small dip in pay or, alternatively, teams could push for one year plus achievable games-played bonuses to allow for more in-season flexibility.  Both are viable options for him next summer.

A year ago, it looked like the Islanders might have to attach a sweetener to clear Pageau’s contract but instead, they spurned trade interest in him this summer.  He’s someone who is steadily around the 35-40-point mark and with his defensive ability and faceoff prowess, he should have good interest next summer.  Besting this price tag might be tough for Pageau but another multi-year pact with an AAV starting with a four might be doable.  Gatcomb was a serviceable fourth liner in the second half of last season, a good showing after getting his first NHL deal at 25 last summer.  He’ll need to show that can hold that role down over a full season and if he does, that could jump him into the $1.5MM range next year.

DeAngelo was a midseason signing after being lured away from his KHL contract and it was a good move as he was his usual productive self while also logging over 23 minutes a game.  His defensive concerns will continue to limit his earnings upside but a good full-season showing could give him a shot at a multi-year deal in the $3MM range next summer.  Boqvist saw limited minutes after being a midseason waiver claim and signed with a small raise instead of what was likely to be a non-tender to avoid arbitration eligibility.  He’ll still be arbitration-eligible summer which will probably work against him again barring a breakout season.  As someone who profiles as a sixth defender at best, he’s likely going to stay close to the minimum salary unless his role drastically changes.

Rittich was brought in as goaltending insurance via free agency.  He wound up making 31 starts for the Kings last season although his .886 SV% was well below average.  Still, he has been a serviceable backup in the past if need be and if he isn’t needed to hedge against injuries, his contract can come off the books entirely if he’s in the minors (if he’s not claimed off waivers).

Signed Through 2026-27

F Casey Cizikas ($2.5MM, UFA)
F Jonathan Drouin ($4MM, UFA)
F Emil Heineman ($1.1MM, RFA)
F Simon Holmstrom ($3.625MM, RFA)
F Kyle MacLean ($775K, RFA)
F Kyle Palmieri ($4.75MM, UFA)
F Maxim Tsyplakov ($2.25MM, UFA)
G Semyon Varlamov ($2.75MM, UFA)

Palmieri was in trade speculation right up to the deadline with the belief that the lack of a trade meant a handshake agreement was in place with then-GM Lou Lamoriello.  It appears new GM Mathieu Darche largely upheld that agreement with this contract.  Palmieri quietly posted 24 goals and 24 assists last season and near-50-point production for under $5MM in this market isn’t bad value.  He’ll be 36 when he needs a new contract and, like Lee, his options may be more limited at that time.  When healthy, Drouin was quite productive with Colorado, notching 37 points in 43 games but injuries have now been an issue for him in five of the last six seasons.  While he was able to get more than one year this time around, it’s still a below-market contract for what a top-six forward should be receiving.  He’ll need to stay healthy and keep producing if he wants a shot at a long-term deal two years from now.

Holmstrom has only been a full-time NHL player for the last two seasons but has quickly worked his way from being a role player to a secondary core piece at both ends of the ice.  The lower-cost bridge deal bought Darche some extra short-term flexibility but it sets up Holmstrom well two years from now when he’ll have a $3.75MM qualifying offer and arbitration rights.  Assuming he’s able to at least stay at this level, a jump to something starting with a five might be the next step.  Cizikas getting six years four summers ago was a bit of a shocker although it has held up relatively well so far.  He’s still a contributing fourth liner who can move up in a pinch and help a bit on the penalty kill.  In a market where some fourth liners are starting to get higher salaries, this isn’t as much of an overpayment as it might have first seemed.

Tsyplakov was believed to also be nearing a new deal before the GM change but this one wasn’t upheld with the sides working out this agreement a little before an arbitration hearing.  He had a solid first season in North America after coming over from the KHL and even if he stays in a third-line role, this deal should hold up well.  With a couple more years under his belt come 2027, his market could be an interesting one.  Heineman came over as part of the Noah Dobson trade after a decent rookie season that saw him score double-digit goals while primarily playing on the fourth line.  Assuming he even stays at that pace, he could land closer to $1.75MM in two years while some offensive improvement could allow him to easily clear $2MM.  MacLean was a regular fourth liner although he wasn’t used a lot, nor did he produce much.  If he stays in this role, he’s likely to stay close to the minimum moving forward.

When Varlamov received a four-year deal two years ago at 35, it was supposed to be the last two seasons that would be the concerning ones.  However, he was limited to just 10 appearances last season and is only set to start skating soon, necessitating the Rittich signing as insurance.  At his best, Varlamov can be an above-average backup but with the injuries, that’s a big question mark moving forward.

Signed Through 2027-28

F Anthony Duclair ($3.5MM, UFA)

Duclair was last summer’s impact acquisition but he wasn’t very impactful offensively, notching just 11 points in 44 games while dealing with some injuries along with a leave of absence following some public criticism from head coach Patrick Roy.  With limited cap space, they’ll need him to pull his weight moving forward or his deal might be one they’re looking to get out of in a hurry.

Signed Through 2028-29

D Adam Pelech ($5.75MM, UFA)

When he signed this contract, Pelech was one of the better shutdown defenders in the NHL and the hope was that he could fill that role for a while yet.  But injuries have become an issue recently while his defensive effectiveness has waned as well.  Turning 31 this month with some heavy mileage already, it’s hard to see Pelech being in a spot where he could be landing a raise on his next contract even if he’s capable of rebounding over the next couple of years.

Signed Through 2029-30 Or Longer

F Mathew Barzal ($9.15MM through 2030-31)
F Pierre Engvall ($3MM through 2029-30)
F Bo Horvat ($8.5MM through 2030-31)
D Scott Mayfield ($3.5MM through 2029-30)
D Ryan Pulock ($6.15MM through 2029-30)
D Alexander Romanov ($6.25MM through 2032-33)
G Ilya Sorokin ($8.25MM through 2031-32)

Barzal has certainly had some ups and downs in recent years.  Paid to be a top-line producer, he hasn’t been that too often beyond his rookie year but 2023-24 was one of those and it looked as if he was turning the corner under Roy.  Then came last season when his offensive struggles returned while he missed 52 games due to a pair of injuries.  At his best, he can be a legitimate top-line forward but at his worst, he’s an inconsistent player with some injury concerns.  In the case of the former, you have a player that might be just a little overpaid under the current salary landscape with the chance of that turning.  In the latter, it’s a boat anchor of a contract.  It’s rare to have that type of extreme with a top offensive player but it’s the case with Barzal.

Horvat started slow after the Islanders acquired him two years ago but his first two seasons with them have been solid.  He’s on the pricier end for a player who hovers around the 55-65-point range (or produces at that level in injury-shortened years) but his defensive game and faceoff skills make this a reasonable-value deal for the time being.  The same can’t be said for Engvall who has cleared waivers multiple times already which led to some buyout speculation this summer.  That didn’t come to fruition but if he winds up spending a lot of time in the minors again (where his cap hit would drop to $1.85MM), it might be a real option down the road.

Romanov’s contract this summer raised some eyebrows as it made him the top-paid blueliner on the team.  For someone who hovers around 20 points and plays on the second pairing, it seems a bit on the pricey side for now but as the cap goes up, this should hold up well as six-plus million for a third defenseman should be fairly normal pretty soon.

Pulock’s long-term pact has held up better than Pelech’s so far.  But he’s not the player he was earlier in his career either as his offensive game hasn’t gotten close to getting back to the level of his first three seasons.  Still, in a number two role, they’re getting decent value for their buck.  Mayfield has been a dependable defender for the better part of a decade but is starting to slow down and found himself in a frequent third-pairing role.  Having that type of player signed through his age-37 season isn’t ideal but for now, at least, it’s at least a manageable contract.

Sorokin had a better showing last season, shaving 30 points off his GAA while keeping his save percentage above the league average but it still came up well short of the dominance he displayed in his first three seasons.  The Isles are paying him to be that player or close to it so there’s some work to do although last year was at least a step in the right direction toward getting a reasonable return on this deal.

Still To Sign

None

Buyouts

None

Retained Salary Transactions

None

Carryover Bonus Overage Penalty

$600K

Best Value: (non-entry-level) Tsyplakov
Worst Value: Pelech

Looking Ahead

One thing that is quickly visible when looking at the Islanders is that they don’t have a lot of below-market contracts and that has contributed to a cap crunch that has been in place for several years now and will be again this season.  Most of the room they have is earmarked for potential bonuses (or they risk another carryover penalty).  If they go down to fewer than 23 players on the roster, they can create a bit more wiggle room but don’t expect anything big from Darche in-season.

Things start to look a bit better after this season, however.  With Lee and Pageau off the books next summer plus the jump in the cap, their flexibility jumps to over $22MM.  The summer after that, a lot of deals are up and their projected cap room lands closer to $60MM.  Things are looking up on the cap flexibility front but they’ll have to remain patient on that front for a little while longer.

Photos courtesy of David Kirouac and Jerome Miron-Imagn Images.