Ranking the 10 Worst NHL Contracts on the Books Next Season

After several seasons of stagnation, the NHL salary cap has increased significantly, rising from $83.5 million in 2023-24, to $88 million last season, to $95.5 million for 2025-26.

Substantial increases will continue over the next two seasons. In 2026-27, the cap will jump to $104 million, and then to $113.5 million for 2027-28.

Those increases are due to the rise of hockey-related revenue. That should provide many teams with the salary-cap flexibility to retain key players and add others via trades or free agency.

Nevertheless, there are limits. Even clubs flush with extra cap room can find that it will evaporate quickly, especially when committing big money to retain or attract talented stars.

Here's our take on the 10 worst NHL contracts heading into the 2025-26 season, based on salary info via PuckPedia.

10. Ondrej Palat, New Jersey Devils

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The New Jersey Devils were still in the rebuilding stage when they signed winger Ondřej Palát to a five-year contract with an average annual cap hit of $6 million on July 13, 2022. They were looking for players with championship experience, which Palat had plenty of thanks to his years with the Tampa Bay Lightning.

Since signing Palát, the Devils reached the playoffs in two of the last three seasons. However, his presence wasn't as much of a driving force as hoped. Groin surgery sidelined him for almost half of the 2022-23 season, limiting him to 23 points in 49 games and seven points in 12 playoff contests.

Palát was healthier over the next two seasons, but his production didn't improve. He managed 31 points in 71 games in 2023-24 and 28 points in 77 games last season. Age and the wear and tear of 13 years of regular season and postseason play have caught up with him.

Now 34, it's doubtful that Palát will regain the form that made him such an effective, versatile two-way forward during his prime with the Lightning. His contract takes up valuable cap room, making it difficult for the Devils to pursue the roster depth they need to become serious Stanley Cup contenders.

9. Elias Lindholm, Boston Bruins

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Having been handcuffed by limited salary-cap space in the previous offseason, the Boston Bruins used their extra cap dollars last summer to make a splash in the free-agent market. On July 1, 2024, they inked Elias Lindholm to a seven-year contract with an average annual value of $7.75 million.

Lindholm was coming off a difficult 2023-24 campaign split between the Calgary Flames and Vancouver Canucks, finishing with 44 points in 75 games. However, he had a well-earned reputation as a solid two-way center, a role the Bruins sought to fill following the retirement of Patrice Bergeron in 2023.

Only three years removed from a career-high 82-point performance in 2021-22, Lindholm was expected to bounce back centering the Bruins' first line. Instead, he struggled in that role, finishing with 47 points in 82 games as the Bruins missed the playoffs.

Now 30, Lindholm's best seasons appear behind him. He's best suited for second-line duty, but their limited depth at center could put him in the first-line role this season. Lindholm remains defensively sound, but the decline in his offense makes this contract a burden that could get heavier over time for the Bruins.

8. Juuse Saros, Nashville Predators

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Throughout the 2023-24 season, Juuse Saros was the subject of trade speculation. He was a year away from unrestricted free-agent status, prompting pundits to ponder whether the Nashville Predators would re-sign him to a long-term deal, especially with promising Yaroslav Askarov within their system.

Predators general manager Barry Trotz silenced the conjecture on July 1, 2024, signing Saros to an eight-year extension with an average annual value of $7.74 million. He added an exclamation point on Aug. 22, trading Askarov to the San Jose Sharks.

Taking over as the Predators' starter in 2021-22, Saros was among the league's top goalies, becoming a finalist for the Vezina Trophy that season. However, his stats have since declined, culminating in a 2.98 goals-against average and .895 save percentage last season as the Predators missed the playoffs.

Entering the first season of his new contract, Saros could bounce back and backstop the Predators into the playoffs. However, the drop in his performance over the past three seasons is worrisome, which could make his current deal a salary-cap nightmare if he fails to regain his once-stellar form.

7. Ivan Provorov, Columbus Blue Jackets

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The Columbus Blue Jackets re-signed two key defensemen ahead of the July 1, 2025, unrestricted free-agent market. One of them was Dante Fabbro, who inked a four-year contract with a reasonable $4.1 million average annual value.

Ivan Provorov was the other, signing a seven-year deal with an AAV of $8.5 million. It was a significant raise over the 28-year-old blueliner's previous cap hit of $6.75 million. He averaged over 23 minutes of ice time per game last season, finishing with 33 points and a plus-minus of plus-11.

Provorov is a good defenseman, but he mainly plays on the Jackets' second pairing, with Fabbro skating alongside Zach Werenski on the top pairing. The Athletic's Aaron Portzline is skeptical that he'll play up to his new salary, saying the Blue Jackets paid a No. 4 defenseman the equivalent of a No. 2 blueliner's salary.

The Blue Jackets had the cap space to afford Provorov's expensive new deal, and they wanted to keep their top-four defense intact as they attempt to become a playoff contender. Nevertheless, they overpaid to keep him in the fold, and it's unlikely they'll get full value for that long-term investment.

6. Tyler Seguin, Dallas Stars

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On Sept. 13, 2018, Tyler Seguin agreed to an eight-year contract extension with the Dallas Stars. The average annual value was an expensive $9.85 million, making him the 10th highest-paid forward in the league during the first season of the deal (2019-20).

When the deal was signed, Seguin was praised by Stars general manager Jim Nill as “a world-class player” and “a leader for this franchise”. He was coming off his fifth-straight season of 72-plus points, and would reach 80 points in 2018-19 before his new contract began.

However, Seguin suffered a torn labrum and hip impingement that required surgery in 2020, sidelining him for all but three games in 2020-21. While he averaged 50 points per season over the next three years, he was never the same as before. He underwent hip surgery again in December 2024.

Now 33 and with two seasons left on his contract, Seguin's deal is an example of the risk involved when signing players to long-term contracts. His injuries were game-related and not his fault, but his hampered performance has turned his deal into a salary cap headache for Nill as he attempts to maintain a Stanley Cup contender.

5. Mika Zibanejad, New York Rangers

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Signed to an eight-year extension on Oct. 10, 2021, Mika Zibanejad had established himself as a reliable first-line center with the rebuilding New York Rangers. He netted 74 points in 2018-19, followed by 75 points in 57 games and 50 points in 56 games during two COVID-shortened seasons.

Zibanejad followed up with 81 points in the final season of his previous contract as the Rangers reached the Eastern Conference Final in 2021-22. He had a career-best 91 points in 2022-23, followed by 72 points in 2023-24 as the Rangers won the Presidents' Trophy and reached the Conference Final again.

That drop in points was a little concerning, but it didn't seem worrisome as the Rangers began 2024-25. However, things quickly worsened as his production fell to 62 points while the Blueshirts struggled through a tumultuous season that ended with them missing the playoffs.

Zibanejad was shifted to the right wing following the acquisition of center J.T. Miller. That sparked a late-season improvement in his stats with 33 points in his final 32 games. However, his $8.5 million cap hit through 2029-30 has already become a cap headache for the Rangers, one that could worsen if he doesn't improve.

4. Elias Pettersson, Vancouver Canucks

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When the Vancouver Canucks signed center Elias Pettersson to an eight-year extension on March 2, 2024, the $11.6 million average annual value ranked among the league's highest. Entering 2025-26, that cap hit puts him eighth among all NHL skaters.

Despite the expense, it seemed to be a worthwhile long-term investment. Pettersson was 25 years old and would finish the 2023-24 season third among Canucks scorers with 89 points. He was also a year removed from a career-high 102 points.

However, Pettersson's performance dropped sharply last season. His rift with teammate J.T. Miller was a contributing factor, resulting in the latter's trade to the New York Rangers in January. Even then, his production didn't improve, finishing with a dismal 45 points in 64 games.

Pettersson's contract ensures all eyes in Vancouver will be on him this season. Failure to return to his 100-point form will not only hurt the Canucks' playoff hopes, but it will leave them carrying a contract that will look increasingly like an expensive mistake that will be difficult to correct.

3. Darnell Nurse, Edmonton Oilers

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The seventh overall pick in the 2013 draft, Darnell Nurse became part of a young core of Oilers players throughout the remainder of that decade. He established himself as a physical, all-around defenseman who could play big minutes on their top pairing.

Nurse's performance earned him an eight-year contract extension on Aug. 6, 2021, coming off what was then a career-best 36 points in 56 games during the COVID-shortened 2020-21 campaign. The Hockey News' Avry Lewis-McDougall felt the $9.25 million cap hit was high, but they couldn't afford to lose him.

It's now clear that the Oilers overpaid to keep Nurse in the fold. His defensive miscues and inconsistent postseason performance have drawn consistent criticism from the club's fans. Despite some improvement, he's unable to play up to the level expected of a defenseman with his cap hit.

Nurse's contract has become an issue as the Oilers attempt to maintain a Stanley Cup contender with limited salary cap space. Now 30 and with 11 NHL seasons under his belt, his contract will become burdensome as his performance declines.

2. Erik Karlsson, Pittsburgh Penguins

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On June 17, 2019, Erik Karlsson inked an eight-year contract extension with the San Jose Sharks. The average annual value was a hefty $11.5 million, but it was considered a worthwhile investment by the Sharks, who had reached the 2019 Western Conference Final with Karlsson in the lineup.

The Sharks' fortunes went south in the ensuing years as their aging roster failed to qualify for the postseason. That led to the departures of long-time stars like Joe Thornton, Patrick Marleau, Joe Pavelski and Brent Burns.

Karlsson's production also suffered until he rebounded with a career-best 101-point performance on a rebuilding Sharks roster in 2022-23, earning his third James Norris Memorial Trophy. That effort enabled them to trade him to the Pittsburgh Penguins in August 2023, shedding all but $1.5 million of his cap hit.

Two years later, Karlsson is a shadow of that 2023 Norris winner, netting 56 points in 2023-24 and 53 points last season. The 35-year-old defenseman is a fixture in the rumor mill amid speculation suggesting the Penguins are trying to trade him. They'll likely have to retain a healthy chunk of their $10 million share of his cap hit to do so.

1. Jonathan Huberdeau, Calgary Flames

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On July 25, 2022, the Calgary Flames acquired winger Jonathan Huberdeau and defenseman MacKenzie Weegar from the Florida Panthers in exchange for winger Matthew Tkachuk. Eleven days later, the Flames signed Huberdeau to an eight-year contract extension with an annual cap hit of $10.5 million.

It seemed like a good idea at the time. A reliable playmaking winger who spent a decade with the often-struggling Panthers, Huberdeau was coming off a career-high 115-point campaign. Then-Flames general manager Brad Treliving felt it was worthy of one of the premier forwards in the league.

In the three years since that signing, Huberdeau tallied 55 points in 2022-23, 52 points in 2023-24 and 62 points in 2024-25. Despite his improvement last season, the 32-year-old winger's production is nowhere near what is expected of a playmaker earning his salary.

Huberdeau has been a good teammate and meshed well with center Nazem Kadri on the Flames' top line. However, he's way overpaid and unlikely to regain the heights of his career-best performance. His cap hit will continue to be a drain on the Flames' cap payroll over the remaining term of his contract.