Devils’ dealmaking will be limited by Palat’s contract – The Hockey Writers – New Jersey Devils

The 2023-24 season was an eye-opener for the New Jersey Devils. Despite breaking the franchise record for most wins and most points in 2022-23, the team took a huge step back and missed the playoffs just a year later. With the dreadful 2023-24 season coming to an end with the Florida Panthers being crowned champions, the hockey mind turns to the endless possibilities to improve their team’s roster. For the Devils, signing Jacob Markstrom was the most significant addition they’ll make this offseason. Now, they’ll look to add depth on offense and defense. However, general manager Tom Fitzgerald will have to be careful with the contracts he hands out.

According to PuckPedia, the Devils have around $15.2 million in cap space and only one or two contracts worth re-signing. As such, there is room for New Jersey to address their needs this offseason. Trading the 10th overall pick in 2024 for a player who would make an immediate impact on the roster has been a consistent possibility. However, acquiring an NHL player worth the pick also requires New Jersey to ensure that the acquisition doesn’t hurt their cap situation too much. One name that sticks out like a sore thumb on their contract list is Ondrej Palat. To say the least, the Czech forward has not lived up to his contract value. Why does this become an issue now? It’s because Palat’s contract could be the reason New Jersey can’t make any meaningful additions to their roster.

Contract from Ondrej Palat

On July 14, 2022, the Devils signed Palat to a five-year, $30 million contract. The average annual value (AAV) was set at $6 million and the first three years of the contract would include a no-move clause (NMC). After the first three years, it will change to a modified no-trade clause (M-NTC) where Palat and his camp would submit a no-trade list of 10 teams. Despite winning two Stanley Cups with the Tampa Bay Lightning in the 2019-20 and 2020-21 seasons, the immediate reaction to the contract was met with mixed reviews due to the high AAV and the terms given to the then 31-year-old winger.

The Devils opted to sign Palat a day after missing out on Johnny Gaudreau, who signed with the Columbus Blue Jackets. Many believe it was a panic buy for Fitzgerald, but having a player like Palat in the playoffs was attractive to several teams. Unfortunately, the 32-year-old’s time with New Jersey has not lived up to expectations. In the 2023-2024 season, he played in 71 games and scored 11 goals and 20 assists for 31 points. While he showed an improvement from the 2022-23 season, when he played 49 games and scored eight goals and 15 assists for 23 points, his production has yet to live up to his price tag.

Palat earned his $30 million contract thanks to his impressive playoff pedigree. However, the Devils have only made the playoffs once during his time in New Jersey. In the 2023 Playoffs, the Czech winger played in 12 games and registered three goals and four assists for seven points. He also assisted on the Devils’ game-winning goal in Game 7 of the first round against the New York Rangers.

Buying out Palat’s contract is not an option

New Jersey’s $15.2 million in cap space will allow the team to make upgrades on offense and defense. However, recent rumors and speculation have linked the Devils to players like Brett Pesce and Martin Necas. Both would be useful additions, but the long-term costs might keep them from pulling the trigger.

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Luke Hughes and Simon Nemec’s entry-level contracts (ELC) expire within the next three seasons and require significant pay increases. Palat’s contract limits the moves the Devils can make to ensure there is room for their young stars. However, buying out Palat’s contract simply does not generate enough money for the organization. If his contract was bought out, the Devils would save $584,444, while $5.4 million would be against the cap for the 2024-2025 season. Additionally, they would save $2.7 million in the 2025-2026 season and leave $3.2 million against the cap. Finally, the 2026-2027 season would save them $3.7 million, while $2.2 million would go against the cap. The organization would then have a loss of $1.1 million between 2027 and 2030.

Finally, the Devils likely still see value in Palat. If New Jersey can make the playoffs and use the winger in pressure situations, his contract may look less outrageous. According to Moneypuck.com, Palat ranked seventh in expected goals for New Jersey at 13.9, and ninth in points per 60 minutes at 1.67. Despite the lackluster point totals, Palat’s overall play is very average. The only problem with that is that he’s paid like a top-six forward.

The Devil’s Need to Plan Ahead

Since buying out Palat’s contract isn’t worth it, Devils fans can only hope that he can become a consistent force for New Jersey in 2024-25. However, if things don’t improve, the organization may have to look for viable trade options for him. He has two years left on his contract after the 2024-25 season and his M-NTC will kick in. For the Devils’ sake, they’ll have to keep hoping that he lives up to his contract value and makes an impact on the team.

Cap management will be crucial for New Jersey in the coming years due to the abundance of young players they will need to sign. Fortunately, Palat’s contract is the only significant contract that could hinder the Devils’ ability to make several additions to the team. However, don’t expect Palat to disappear from the Devils’ roster in the near future.