TSN’s Darren Dreger reported this morning on X that the New Jersey Devils and Dawson Mercer agreed to a new contract worth $12 million over 3 seasons. This post is a quick reaction to the news.
It is not yet announced by the New Jersey Devils as of this writing. However, the Devils’ last RFA from the 2024 offseaon has been signed. Darren Dreger of TSN reported on X this morning that Dawson Mercer and the Devils have agreed to a new contract. The contract will be three seasons long and worth $4 million per season as an average accrued value (AAV). In other words, a $12 million contract over three seasons.
Is this a good deal? Way back in April, Jared profiled Mercer’s RFA situation and predicted a “a two-year bridge deal worth around $3.5 to 4M per season.” The actual result came in a little higher. Who benefits? Honestly, I think both sides did.
The Devils benefit by securing Mercer for a third season on this bridge deal. The contract takes him to when he turns 25 and after his sixth season of the NHL, which means he will be restricted free agent again. That gives the Devils some control, although Mercer should be eligible to file for arbitration by then. The three seasons is more than enough time for Mercer to demonstrate whether he is worth a larger investment before he becomes eligible for unrestricted free agency.
The $4 million AAV is a benefit for Mercer. While last season was a disappointing one after a very good 2022-23 season, he still managed to get to 20 goals and play in every game. He now has one more season with 20+ goals scored than, say, Ondrej Palat to pick a not-so-random example. His talent secured a hefty bag considering the down season he just had. But not so hefty that it is an anchor on the cap. In fact, should Mercer rebounds and even flourishes during this contract, it may become a bargain. A return of DAWGson Mercer will likely earn more for him in the future while giving the Devils plenty of value in the present. Which is the general idea of a bridge deal like this one.
In terms of the larger salary cap picture, this contract fits in well. The Devils are left with about $976,103 in space per PuckPedia before any rosters have to be determined. That is enough to add one more league-minimum salary or slightly-higher-than-league-minimum salary player without needing to make a move for cap purposes. The players in camp on a PTO actually have a thing to possibly play for in theory. That is also enough room to make call ups during the upcoming season without needing to do any extra transactions. As the season goes on, this will also mean a bit more room to add in a trade situation. Beyond this season, Mercer joins Nico Hischier, Ondrej Palat, Stefan Noesen, Brendan Dillon, and Kurtis MacDermid as players whose contracts end after the 2026-27 season. That and any salary cap ceiling increase should have more than enough room for a raise beyond Mercer’s bridge contract should Mercer earn it. This means the forward core is locked in for two more seasons at a minimum, but that was already the case prior to Mercer re-signing with the Devils.
Overall, I think this is something both sides have reason to smile about and that makes me smile. This is a good contract with real room for growth. The only real question I have and I am sure some of you, the People Who Matter, have is this: Why did it take this long? The Devils have had the cap space and contract room to make this deal. Mercer was willing to take a shorter term contract and ended up taking a number below the very maximum the Devils could offer. This deal could have been made weeks or even months ago. What was the hold up? Maybe Mercer and his agent were driving for a harder bargain on salary. Maybe Fitzgerald was trying to make a point about having the player take less either in term and/or salary. Maybe the negotiations were that contentious? Or just dragged out that nothing serious was discussed until this very week. Who knows. Either way, it is now moot. The contract is on the books. Mercer is a Devil for three more seasons.
With the contract sorted out, Mercer should become the nice 69th player in Devils training camp. He was the only absent player because of it. He should be able to join the team today and get ready for any participation in preseason games next week. Mercer will almost definitely be on the plane to Prague so the exhibition games will be really for getting him warmed up and giving the coaching staff something to consider about his usage ahead of the Buffalo games in Czechia. Hopefully his 2024-25 season does not begin with an extended goal and point drought like last season.
Now that you have my quick thoughts about Mercer’s new contract, I want to know yours. What do you think of Mercer’s three-season contract worth $12 million? Do you think he will bounce back in 2024-25 and out-earn a $4 million cap hit? What would it look like for Mercer to earn a big raise after this bridge deal ends? How do you think Sheldon Keefe will utilize Mercer? Why do you think this re-signing took this long? Please leave your answers and other thoughts about Mercer and his new deal in the comments. Thank you for reading.