The New Jersey Devils have secured one of their cornerstone players, signing defenseman Luke Hughes to a seven-year, $63 million contract extension ($9 million AAV).
The 22-year-old blueliner, drafted in 2021, has become a key player on the Devils’ defense and is now signed through 2032. His new deal ties him with Dougie Hamilton as the highest-paid player on the roster. Hughes will spend at least the next five seasons alongside his older brother, Jack Hughes, whose contract runs two years shorter. Both brothers also share the same 10-team no-trade clause during their eligible years.
Cap Space Concerns
While the extension solidifies the Devils’ long-term core, it has also pushed them into a financial squeeze. Following the signing, New Jersey sits at - $3.98 million in cap space ahead of opening night on October 9th in Carolina.
The Devils must get under the cap by puck drop, and several options are on the table:
Trade Candidates:
1. Dougie Hamilton ($9M AAV) has been floated in rumors. Moving him would immediately resolve the cap issue, but the veteran defenseman’s leadership, playoff experience, and mentorship remain valuable, despite his age and injuries.
2. Ondrej Palat ($6M AAV) is another possibility. At 34, his production has declined, and his modified no-trade clause now allows him to be traded to 10 teams.
LTIR Relief:
Johnny Kovacevic is sidelined until mid-2026, making him a candidate for long-term injured reserve. LTIR would free up $3.82M this season (slightly less than last year’s $4M benefit). If Kovacevic is placed on LTIR, the Devils would still be under $200K over the cap.
If the team puts Kovacevic on LTIR, the team will be less than 200,000 over the cap, which could be cleared by sending Bordeleau ($775K) or MacDermid ($1.15M) down to the AHL. They could also place Marc McLaughlin or Stefan Noesen on LTIR if necessary.
Looking Ahead
If Kovacevic goes on LTIR, and the team makes a few other moves, New Jersey should be cap-compliant by opening night. The real challenge will arise when he returns mid-season, forcing management to make tough decisions about how to allocate space in the salary cap.
For now, however, the Devils can celebrate a major win: Luke Hughes is locked in as a franchise cornerstone through 2032.