3 reasons why Oilers could regret Leon Draisaitl's $112M, 8-year contract extension

The Edmonton Oilers announced a massive extension for superstar Leon Draisaitl, ending weeks of speculation regarding the deal. The eight-year, $112 million extension kicks in after this upcoming season, making Draisaitl the highest-paid player in the NHL.

While Edmonton fans can now breathe a little easier, signing Draisaitl to such a contract may lead to bigger issues down the road.

So, let’s look at three reasons why the Edmonton Oilers could come to regret signing Leon Draisaitl to such a mega extension.

3 reasons why Oilers could regret signing Leon Draisaitl to a mega extension

#3: The deal will take up a significant chunk of the salary cap

As it stands, the current salary cap ceiling is $88 million, according to PuckPedia. That situation means that, unless the cap goes up next season, Leon Draisaitl’s new deal would take up roughly 16% of the Oilers’ total cap.

While that percentage is well below the maximum 25% for an individual player, it does take up a large portion of the team’s overall cap space. As such, the deal could impact the club’s cap management strategy next season and beyond.

#2: The deal may not age well

While Leon Draisaitl has shown no signs of declining, he is 29. His age means that Draisaitl will be 37 when the deal expires. Consequently, the deal may not age well, becoming a burden for the team.

Moreover, if injuries become a concern for Draisaitl as he gets older, the club may be stuck with a very expensive deal that no one else may want to take on.

Also, the deal includes a no-movement clause. As such, if the Oilers ever wanted to move on from Draisaitl, for whatever reason, the club may be unable to do so.

#1: The Oilers may struggle to re-sign other key players

While getting Draisaitl’s signature on paper is a great move, it’s only the beginning. Contract extensions loom for Connor McDavid and Evan Bouchard. It’s safe to assume that McDavid will get a higher AAV than Draisaitl, while Bouchard should also get a hefty raise.

If that’s the case, the Oilers may find themselves in a tough spot trying to fill out the roster. As the Philip Broberg and Dylan Holloway offer sheets proved, the Oilers could struggle to keep good players due to salary cap limitations down the road.

Of course, the expectation is that the salary cap will increase in the coming years. This season, the cap increased by over $2 million. However, there is no telling how much the cap might increase in the coming years, making it quite challenging for Edmonton's management to ice a competitive team under the current cap structure.