Alex Ovechkin re-signs with Washington Capitals on five-year, $47.5 million deal

It was never really in doubt, but Alex Ovechkin is returning to the Washington Capitals. The legendary forward announced his own extension, which will total $47.5M over five years ($9.5M AAV). Ovechkin was a pending unrestricted free agent but has spent his entire career in Washington and was not expected to sign anywhere else.

Capitals CEO Ted Leonsis released a statement:

"Alex is a world-class athlete who will forever be regarded not only for leading the team to achieve our ultimate goal of winning the Stanley Cup, but also for inspiring the next generation of fans and youth players. The impact Alex has had on hockey in D.C. extends well beyond Capital One Arena. His performance on the ice has undoubtedly sparked countless new fans of the game and inspired more youth players to lace up skates of their own. Off the ice, Alex’s impact is equally unmatched. Not only is he committed to the franchise, but also to the community, and we look forward to seeing him in the Capitals uniform for years to come."

Pierre LeBrun of The Athletic reports the full structure of the deal:

• 2021-22: $1.0M salary + $4.0M signing bonus
• 2022-23: $1.0M salary + $9.0M signing bonus
• 2023-24: $1.0M salary + $11.5M signing bonus
• 2024-25: $5.0M salary + $6.0M signing bonus
• 2025-26: $5.0M salary + $4.0M signing bonus

Getting a good chunk of salary on the last two years would have been important to the Capitals, as an early retirement would not remove the cap hit from the books, given the age at which Ovechkin is signing. There’s obviously now a financial incentive for him to play out the full deal, though his loyalty to the Capitals organization has never been in doubt.

Now 35, Ovechkin will almost continue to carry the exact same cap hit he has for the past 13 years. In 2008 he signed a 13-year, $124M contract with the Capitals, which carried a cap hit of $9,538,462. That was nearly 19% of the salary cap at that point, but it was certainly worth it for a player that will go down as arguably the greatest goal-scorer of all time. In fact, Ovechkin needs to average just 33 goals a season over this five-year deal to pass Wayne Gretzky’s record 894 goals.