Connor McDavid’s extension reshapes the Edmonton Oilers reality

As the offseason progressed, anxieties around whether or not Edmonton Oilers Captain Connor McDavid would re-sign with the team or not occupied hearts and minds across Oil Country. All that came to an end on Monday, just before the start of the 2025–26 regular season, as McDavid signed an extremely team friendly extension. Most importantly, at two years and $12.5M, McDavid is in the fold for at least three more seasons.

This is, of course, a victory in itself. Still, the more important victory is yet to be earned. With his new contract McDavid has become almost as valuable against the cap as he is on the ice, affording the Oilers a plethora of opportunities to keep pushing for a Stanley Cup.

Let’s take a closer look at the implications of McDavid’s new contract.

Time to go all out

Saving the Oilers a conservative estimate of $5M against the cap for 2026–27 and 2027–28 is one thing, but by the same numbers McDavid left $115M in guarantees behind with this new deal. The question of why brings us to the ultimate point of this contract, the chance to win. According to GM Stan Bowman, McDavid never negotiated on dollars or terms, instead focusing on conversations about the goals of the team and its future.

The Oilers infused a lot of youth this offseason, but are generally considered to have among the weakest prospect pools in the league. It might be difficult to find contributors on cheap entry-level deals, especially for the Oilers. For that reason cap flexibility becomes all the more important, as the Oilers will have more space to retain talent or upgrade their team outright. Whether by free agency or trade, having cap flexibility is vital to the Oilers making up for their lack of futures.

The focus is clear, and the next three seasons the Oilers will be swinging for the fences. The team had already been aggressive in the pursuit of the moment, and clearly McDavid feels this should continue to be the focus. The two-year deal is a shorter leash, giving McDavid some power to reassess his circumstances soon. The Oilers will have to remain smart in their roster construction, and continue to progress on the ice.

Retaining other players

In more concrete terms, the impact of the deal is already in motion. The Oilers should be able to retain any of the players they wish to. Jake Walman’s seven-year extension proves this, as the Oilers were able to secure a key piece of their blueline. Ensuring a strong blueline is vital for supporting McDavid and Leon Draisaitl up front.

Time will tell what Mattias Ekholm’s next contract might look like, though he and Brett Kulak can be retained as well. The same goes in net for Stuart Skinner, Calvin Pickard, and Connor Ingram. These players could see slight raises, or the Oilers might pivot to a different direction altogether. The point is that the Oilers will have the option to do so from a position of strength.

UFAs will have more flexibility

McDavid’s cap hit combined with the rising cap will allow the Oilers to be aggressive in adding salary. This might be the last season the team is so strapped for cap space, which requires lots of capology to navigate at this point.

Another ripple effect of McDavid taking less is that others might be inspired to do so as well. With his former agent as team president, his junior coach as head coach, and a new arena built during his time with the team, McDavid is more than just a player or a captain. He sets the tone for the organization as a whole. Even more than before free agents might be eager to follow suit, sacrificing some compensation for the greater mission.

Trades can e made

Even with the rising salary cap, there were some good players traded in cap dump style moves this offseason. Even so, the extra space might also be used to fit a more expensive core piece altogether. Clearly the Oilers will have no issues giving up draft picks for help in this three year window.

Perhaps they can put together a package to acquire a player of significant impact on a higher salary. This benefit will only kick in for next season, so the Oilers might be able to make some huge changes based on how this season goes. Time will tell, but a whole new market of players will be available to the Oilers on the trade market.

What will be McDavid’s next deal?

The compulsion to look ahead to McDavid’s potential next contract has already popped up. Doubters might go as far as saying that the two years mean that McDavid is definitely leaving afterwards. This is merely projection, conjecture, and speculation. The term does allow McDavid to stay flexible in his priorities.

Perhaps McDavid will sign somewhere else, or stay with the Oilers. Until he wins a Stanley Cup, that is clearly his top priority. He might take a long term deal, or perhaps even take another similarly short stint. Even if McDavid does leave, it is clear that he has given more than could be asked for the Oilers. The future will reveal itself in time, but the focus brings on the here and now.

Positive vibes across Oil Country

Needless to say there is a sense of euphoria across Oil Country. This is a bold statement from McDavid, setting the tone for the Oilers relentless pursuit of eternal glory. The team is as focused as ever, and this news should cement the urgency and intensity required to reach their goal.

Oiler fans know better than most that the season is a marathon, not a sprint. Early woes have plagued the team, and even with McDavid and Draisaitl at their best the Oilers are no stranger to woes. Regardless of what unfolds, it is clear that McDavid is satisfied with the Oilers operation and believes that the team has what it takes to win.