The 2023-24 season served as an eye-opening experience for the New Jersey Devils. Despite breaking the franchise record for most wins and most points in the 2022-23 season, the team took a massive step back and missed the playoffs only a year later. Now, as the dreadful 2023-24 season comes to a close with the Florida Panthers being crowned champions, hockey minds shift to the endless possibilities of improving their team’s roster. For the Devils, acquiring Jacob Markstrom was the most important addition they will make this offseason. Now, they will look to add depth on offense and defense. However, general manager Tom Fitzgerald will need to be careful with the contracts that he hands out.
Per PuckPedia, the Devils have approximately $15.2 million in cap space and only one or two contracts worth re-signing. Therefore, there is space for New Jersey to address their offseason needs. Trading the 2024 10th overall pick for a player that would make an immediate impact on the roster has been a constant possibility. However, acquiring an NHL player worthy of the pick will also require New Jersey to make sure the acquisition does not hurt their cap situation too harshly. One name that sticks out like a sore thumb on their list of contracts in Ondrej Palat. To put it lightly, the Czech forward has not lived up to his contract value. Why is this becoming an issue now? It’s because Palat’s contract could be the reason New Jersey can not add helpful additions to their roster.
Ondrej Palat’s Contract
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 turn into a modified no-trade clause (M-NTC) where Palat and his camp would submit a 10-team no-trade list. Despite him winning two Stanley Cups with the Tampa Bay Lightning in the 2019-20 and 2020-21 seasons, the immediate reaction to the contract garnered mixed reviews due to the high AAV and terms given to the then 31-year-old winger.
The Devils chose to sign Palat a day after they missed out on Johnny Gaudreau, who signed with the Columbus Blue Jackets. Many believe that it was a panic signing for Fitzgerald, but having a player like Palat in the playoffs was enticing for multiple teams. Unfortunately, the 32-year-old’s time with New Jersey is not living up to expectations. In the 2023-24 season, he played in 71 games and scored 11 goals and 20 assists for 31 points. Though he showed an improvement from the 2022-23 season where 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 due to his impressive playoff pedigree. However, the Devils have only made the playoffs once in his New Jersey tenure. 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 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 such as Brett Pesce and Martin Necas. Both would be helpful additions, but the long-term cost could keep them from pulling the trigger.
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Luke Hughes and Simon Nemec’s entry-level contracts (ELC) will expire within the next three seasons and they will require sizable raises. Palat’s contract limits the moves that the Devils can make in order to make sure there is room for their young stars. However, buying out Palat’s contract simply does not save enough money for the organization. If his contract was bought out, the Devils would save $584,444 while $5.4 million would go against the cap for the 2024-25 season. Furthermore, in the 2025-26 season, they would save $2.7 million and have $3.2 million against the cap space. Finally, the 2026-27 season would save them $3.7 million while $2.2 million would go against the cap. Then, the organization would have $1.1 million from 2027-2030 go against the books.
Lastly, the Devils likely still see value in Palat. If New Jersey can make the playoffs and utilize the winger in pressure situations, his contract can start to look less outrageous. According to Moneypuck.com, Palat ranked seventh in expected goals for New Jersey with 13.9, and ninth in points per 60 minutes with 1.67. Despite the lackluster point totals, Palat’s overall play is very middle of the pack. The only issue with that fact is that he is paid like a top-six forward.
Devils’ Need to Plan Ahead
Since buying out Palat’s contract is not worth it, Devils fans can only hope that he becomes a consistent factor for New Jersey in 2024-25. However, if there is no improvement, the organization may have to look for viable trade options for him. After the 2024-25 season, he will have two years remaining and his M-NTC will go into effect. For the Devils’ sake, they will continue to hope that he plays up to his contract value and makes an impact on the team.
Cap management will be crucial for New Jersey in the upcoming years due to the plethora of young players they will need to sign. Luckily, Palat’s contract is the only one of significance that could be hindering the Devils’ ability to make several additions to the team. Nevertheless, do not expect Palat to be off the Devils’ roster in the near future.
