The Devils have too many veterans on pricey contracts who aren’t quite pulling their weight (thanks, Tom Fitzgerald). They need to trim the fat this summer if they’re gonna hope to get better in 2025-26.
Last week, the New Jersey Devils signed defenseman Johnathan Kovacevic to a five-year, $20M contract extension that will kick in beginning with the 2025-26 season.
John was less of a fan of this deal than I was, as I simply wrote in the comments that “if they’re committed to going with a Siegenthaler-Kovacevic defensive pairing in the future, it’s fine”. I haven’t necessarily changed my opinion on that, nor have I changed my opinion that this more likely than not means the Devils may wind up trading Simon Nemec, Seamus Casey, or perhaps both sometime in the not too distant future. Frankly, I’m surprised one of them didn’t move on trade deadline day itself, but that might’ve involved a little bit of creativity and boldness from a general manager who played it too safe.
In signing Kovacevic though, it does raise the question of how this impacts the Devils salary cap situation going into next season. As you may very well be aware, the Devils could use another center and they could use at least one more scoring winger who can put the puck in the back of the net. Despite having plenty of LTIR space to address said needs at the deadline, Tom Fitzgerald barely tapped into that space.
The salary cap ceiling is expected to rise to $95.5M next season with two more large jumps in the subsequent seasons, up to at least $113.5M by 2027-28. That’s all well and good, as more space is ultimately better as the Devils have core players Jack Hughes and Jesper Bratt locked up until 2030 and 2031 respectively (Nico Hischier is scheduled to hit UFA after the 2026-27 season). But with several other large contracts on the books and players showing varying degrees of pulling their own weight and living up to said deals, Kovacevic checking in with a $4M AAV starting next season certainly complicates matters to some extent when it comes to the long-term cap ramifications.
I’m not saying that to suggest Kovacevic doesn’t deserve the money. If anything, I think Kovacevic should be commended for coming into training camp in his first season with a new team, beating out a top prospect in Simon Nemec, winning that job, and holding on to it. NHL jobs should be merit-based and as we’re continuing to see, Nemec still hasn’t done enough to win that job back, and we’re at the point where Dennis Cholowski is playing over him in Dougie Hamilton’s absence, which should tell you all you need to know. Kovacevic deserves to be rewarded, but with that said, he wasn’t part of the Devils long-term plan when the Devils used a 2nd overall pick on Nemec in 2022.
The Devils currently have $80.69M committed to the 2025-26 salary cap between 10 forwards, six defensemen, and one goaltender. That’s 17 players in total, which is short of the 23-man roster limit. That leaves them roughly $14.8M in salary cap space for six players, but keep in mind, Luke Hughes will be hitting RFA for the first time as his ELC is up and he will get a raise.
It may be tempting to say, “just bridge Luke, you have too many holes elsewhere”, or jump through some hoops while doing mental gymnastics to justify keeping the AAV low. You aren’t necessarily wrong to say the Devils have holes, but trying to nickel and dime the youngest Hughes brother is not a very good idea. He is too important a piece to the Devils future, he’s already made huge strides in his overall game this season, and he’s showing he’s capable of playing 20+ minutes a night. He’s the #1 defenseman on the roster right now, with upside to be even better. That’s a contract where you want to set the terms on your own and not risk opening it up to any offer sheet shenanigans. That’s also a situation where its not worth alienating his older brother who also happens to be the best offensive weapon on the team. Bottom line, Luke needs to get paid this summer and the Devils shouldn’t try to take half-measures or cheap out in the process. Pay the man.
For argument’s sake, let’s say Luke gets $8.5M AAV on his next deal (which would match the AAV fellow Calder Trophy finalist Brock Faber got on his second contract). That $14.8M number drops to $6.3M with five roster spots to fill.
The cap might be fake, but it’s not fake enough where that’ll be enough space to work with if you actually want to improve this hockey team. And seeing as this hockey team is doing their best to try to blow a surefire playoff berth in one of the weakest Eastern Conferences in recent memory, they could use an upgrade or two.
Most of the pending UFAs on this Devils roster are players the Devils should be looking to upgrade on anyways. And you might be able to squeeze every last dollar by going cheap with backup goaltender (Nico Daws is signed for next year at $812,500) and forwards on ELC contracts (Arseni Gritsyuk’s salary on his 1-year ELC would be $925,000), but those options present some risk, like whether or not you can trust them to contribute on the NHL roster. The Devils could also save a little money against the cap if they bury Kurtis MacDermid in the AHL and replace him with a minimum salary player. But the Devils could have also done that this year as well when they were accruing cap space for the deadline trades they didn’t make. They chose not to do that and keep their otherwise useless enforcer around.
Gerald wrote last week about how the Devils need to purge some forwards from the roster, either at or sometime after the deadline. And he’s right. There are several forwards who have got to go. Unfortunately, Fitzgerald didn’t do that at the deadline (nor did I really expect him to), so after will have to suffice.
Let’s take a look at who HAS to go, what other options they might have, and if one bigger ticket player is movable should the Devils decide to go in that direction.
It’s Time to Move On From Erik Haula and Ondrej Palat
Erik Haula has one more goal in his last 29 games than you or I have. That is a problem.
Haula has been a fine member of the supporting cast since he came to the Devils via trade prior to the 2022-23 season. He was rewarded after that season with a three-year deal worth $3.15M AAV. Since then, it’s been a mixed bag. He was injured for stretches last year, he’s been injured this year, we have no idea if that injury is still hampering him, he has the prolonged stretch of zero production that I just mentioned, and he turns 34 later this month. The bottom line is you simply can’t be that unproductive for that long and continue to keep your spot in the lineup. Not if you’re running a team that is serious about winning.
Meanwhile, much has been written about Ondrej Palat since he signed a five-year deal worth $6M AAV in the summer of 2022. As we’re closing in on the end of the third year of that deal, Palat has a grand total of 32 goals and 47 assists in 183 games with New Jersey.
Even acknowledging that there is some amount of value attached to Palat that is less tangible than his counting stats….things like leadership, “rings in the room”, and playing the game the right way….this is a hard cap league. $6M annually is a lot to pay for intangibles, and those intangibles aren’t helping the Devils in the playoffs if the rest of the player’s body of work is mid at best in the regular season to the point where the Devils can’t get there. Frankly, its too much money if he is not as productive as he was for most of his career in Tampa Bay. Add in that most of that production came this year when he was stapled to a line with Jack Hughes and Jesper Bratt and it raises the question if he’s capable of producing at all playing further down the lineup away from them. Not that Palat’s 25 points in 63 games this season is anything to write home about, but the answer to that question is “probably not” for the soon-to-be 34 year old.
Finding a way to shed both Palat and Haula’s cap hits in their entirety would save the Devils $9.15M AAV in cap space. The question is whether or not the Devils can find a taker for one or both.
Haula currently has a full no-trade clause, but that becomes a 6-team no trade list on July 1st. His base salary is also a little lower at $2.4M with no signing bonuses attached. I’m not saying the Devils would get a haul for Haula, but the Devils should theoretically be able to find someone who would want him and they might be content to simply take “future considerations” for him. The Radek Faksa trade from Dallas to St. Louis this past offseason would be a comparable deal.
Palat could be a little trickier as he has the extra year on his deal, a larger AAV, and he has a NMC in addition to a 10-team trade list starting on July 1st. Palat has a little more say in the process, and even if Tom Fitzgerald (or whoever the Devils GM is) wanted to be as cutthroat as Chris Drury and threaten to put the player on waivers if he doesn’t waive his no-trade, he technically can’t do that as the NMC prevents that.
That said, this is a league where teams routinely bail out other teams on mistake contracts. Maybe this is another one of those deals where the Devils have to take no return, or they attach a draft pick to get someone to take Palat. Maybe one of the 200 Hockey Men around the league remember how key Palat was during those Lightning Cup runs, overrates his 200-foot game and leadership like Tom Fitzgerald did, and decides they have to have him. Maybe the Devils do have to retain a portion of Palat’s salary, which isn’t ideal but avoids a potential buyout down the road. Maybe the Devils have to take a less than ideal contract back to offset the cost somewhat.
Still, I have a hard time believing in a league where bad players and bad contracts get moved, the Devils can’t find someone to take Palat. In the last calendar year, Seth Jones, Jacob Trouba, Patrik Laine, Cody Ceci, Pierre-Luc Dubois, and Darcy Kuemper have gotten moved. Some to varying degrees, some for each other, some multiple times.
Yes, I’m ultimately fine with it if the Devils get no return for Haula and/or Palat. The return is the cap space, which is more valuable than whatever late round draft pick or nothingburger prospect they could get instead.
It would take some creativity, and certainly a lot more creativity than Tom Fitzgerald showed at the trade deadline, but it can be done. And it needs to be done.
Should the Devils Consider Moving Dawson Mercer in a “Hockey Trade”?
The great philosopher Janet Jackson once said “What have you done for me lately”, and when it comes to Dawson Mercer, that very question needs to be asked.
Mercer’s first two years in the NHL were great given the level of expectations. 42 points as a 20-year old followed by a 27 goal, 29 assist season where he was doing things that put him on a short-list with Wayne Gretzky at their respective ages. All on the first two years of his ELC. That’s the stuff dreams are made of.
Since then, though? Mercer took a step back in Year 3 with just 33 points, and while he might top that number this year, I think its fair to say the Devils aren’t getting what they thought they were getting when they signed him to a 3-year, $4M AAV bridge deal prior to this season.
Mercer is just 23 years old, so he could still have another level or two to gain in his development. But its not like the signs are there that there could be a breakout like there was with Jesper Bratt several years ago. At the same age, Bratt was putting the finishing touches on his first of four consecutive 70+ point seasons. Bratt will likely have several more 70+ point seasons before its all said and done. I have my doubts that Mercer will ever have one.
Add in the fact that Mercer doesn’t really drive play. Add in the fact that for a player I’m told has that dawg in him, he’s often floating out there just as much as anyone else. Add in the fact that he’s really more of a winger than a center, and he’s really more of a complimentary piece than a core piece. Mercer’s best ability might be his availability, which might be as fluky that he’s played 311 consecutive games and counting as Jack Hughes and his history of shoulder injuries is. Add it all together and it raises the question of whether or not a hockey trade for another similarish young player might be best for all parties involved.
What If They Trade Dougie Hamilton Instead of Simon Nemec or Seamus Casey?
When the Devils locked up Kovacevic to his deal, I think most people looked at that like how I looked at it, saw the Devils have a RHD depth chart of Dougie Hamilton, Brett Pesce, and Johnathan Kovacevic at the NHL level, and thought this spelled the beginning of the end when it comes to the futures of Simon Nemec and Seamus Casey as Devils.
That’s certainly possible, and I was surprised when neither Nemec nor Casey were moved at the deadline to bring in a player who could help the Devils beyond this year. But what if the plan all along isn’t to move Nemec or Casey?
What if the plan is to trade Dougie Hamilton instead?
Trading Dougie Hamilton would be one way of opening up a bunch of cap space in a hurry. And while I’m not necessarily saying Dougie Hamilton is dead weight, I think now that we’re closing in on the end of Year 4 of his Devils career, we should take a look back and evaluate.
Dougie Hamilton has been as advertised from the blueline. He has had 160 points in 227 games since coming to New Jersey, and while it will always be an adventure with him defensively, for the most part, he has contributed more positive than negative since signing in New Jersey.
That said, he turns 32 this summer, he’s signed for 3 more years at a team-high $9M AAV, he’s missed significant chunks of three of his four seasons already in New Jersey, he’s not the greatest skater, he’s not the greatest defender, and the Devils have two well-regarded prospects waiting in the wings.
I do think trading Hamilton comes with risk. Moving him would likely leave Luke Hughes as the only defenseman on the roster you can count on as a source of offense. That would also assume that either Simon Nemec or Seamus Casey is ready to be a full-time NHL defenseman. Nemec doesn’t quite look the part as he has been inconsistent at best and drawn the ire of Sheldon Keefe, and Casey is already back in Utica with Dennis Cholowski taking his spot on the NHL roster. As I mentioned earlier, that should tell you all you need to know in regards to whether or not the Devils think Nemec or Casey are NHL-ready.
That said, there are workarounds. The Devils could move Hamilton via trade (more on that in a bit) and bring in another Johnathan Kovacevic-type on a cheap, short-term deal and put the onus on Nemec to beat that player and win the job, similar to what Kovacevic did with him. That unnamed defenseman might cost a little something. He shouldn’t cost $9M though, and the Devils could turn around and use that $9M to address a few holes.
How movable is Hamilton though? The answer is….somewhat.
Hamilton has three years and $25.2M in money owed to him remaining on his deal. $10.55M of that is in a signing bonus that is due on July 1st, 2025 (he has a base salary of $1M next season).
If Devils ownership was willing to write that big check only for Hamilton to play elsewhere, would that interest other teams in trading for him? Especially if there are teams out there that have a whole bunch of cap space at their disposal? It might be a $9M AAV through 2027-28, but its only $14.65M in real dollars at that point.
Hamilton can block trades to all but 10 teams so he has a say in the matter, but it also wasn’t too long ago that Hamilton chose to come to New Jersey despite them being a perennial rebuilding team. That doesn’t necessarily mean he will or won’t leave New Jersey willingly, but if he were to be presented with an opportunity and it was clear the Devils wanted to go in a different direction, would he take it?
I don’t know the answer to these questions. The simplest answer might be that Dougie is signed for next year, the Devils don’t want to pay that money for him to play elsewhere, the Devils need what he contributes offensively, and Dougie is the least of their problems at the moment anyways. I wouldn’t disagree with any of that. But it is something to consider as we’re entering the final years of the Hamilton contract.
Final Thoughts
I didn’t write this article to point out how bleak the Devils situation is, either on the ice or on a spreadsheet. I don’t believe its a bleak situation.
I do believe that the Devils need a better supporting cast around their core players though, and I do believe that after a summer where Tom Fitzgerald spent big to fix the goaltending, defense, and make the team tougher to play again, the priority now needs to shift towards building better center depth and finding a scoring winger or two who can put the puck in the back of the net so the offense isn’t totally reliant upon Jack Hughes.
Assuming Luke Hughes is correctly given the bag this summer, that roughly $6.3M remaining isn’t going to be enough to add anything other than minimum salary players to round out the lineup. And while the Devils may wind up signing prospects like Lenni Hameenaho or Arseni Gritsyuk to ELCs, I’d be careful about anointing either as a savior when they have yet to prove they’re NHL players.
If the Devils remain status quo, their options are really limited due to the lack of cap space, which is why I believe it is a must that the Devils find a way to move on from both Erik Haula and Ondrej Palat this summer. I also don’t think its quite enough to go the buyout route or retain salary via trade either. They really need to find a way to purge both players (or more importantly, their AAVs) off of the roster entirely.
Doing so would put the Devils closer to $15M in cap space and better position the Devils to be a potential player for a center or winger. I’d prefer the Devils explore the trade route and find someone who is already under contract at a reasonable number rather than pay bloated UFA prices in a rising cap environment, but the point is that they’ll have more options and flexibility to do what they need to do. Moving on from Haula and Palat is a no-brainer in that respect. The Devils don’t necessarily need to move Mercer because of cap reasons but they might want to consider it if they feel he has plateaued in terms of his development or if they simply want to shake up the mix in the room and in their middle six. And if they really want to open the floodgates, they could consider shopping Hamilton around and finding a way to get his $9M AAV off of the books.
By the way, I didn’t just pick these players at random. According to Dom Luszczyszyn’s player cards at The Athletic, Palat, Haula, and Hamilton are providing the Devils -$8M in surplus value relative to their salaries (Mercer is a +$0.3M AAV value). Add in a Brenden Dillon and that number sinks to -$10M. In terms of whether or not these players are worth what they’re being paid, the answer is “not really”.
That’s not to say there’s not other dead weight on the roster that probably needs to be moved, but now we’re talking about an ineffective fourth line that is mostly pending UFAs like Curtis Lazar and Nate Bastian, a declining middle six scoring winger in Tomas Tatar, and an enforcer in Kurtis MacDermid. The Devils should definitely consider moving on from all of those players as well and rebuild their fourth line from scratch. But when it comes to those players, we’re talking about minimal cap savings and swapping them out for other bottom six players with similar salaries (and likely, similarly flawed players as well).
That’s how I view the Devils situation in regards to the cap in future years. Perhaps you view things differently. Please feel free to leave a comment below, and thanks for reading.
(stats referenced in this article to not include the game against Columbus on March 11, 2025)