The New Jersey Devils made headlines this week, signing 20-year-old defenseman Luke Hughes to a seven-year, $63 million contract extension. Carrying an average annual value (AAV) of $9 million, Hughes now sits tied as the highest-paid player on the Devils’ roster alongside veteran Dougie Hamilton. More strikingly, his cap hit is $1 million more annually than his brother Jack Hughes — New Jersey’s star forward who inked his deal in November of 2021.

The contrast between the two contracts isn’t just about sibling bragging rights. It’s a case study in how dramatically the NHL’s salary landscape has shifted in just a few short years. When Jack signed his eight-year, $64 million contract, the league was still grappling with pandemic-related revenue issues and a flat cap. Fast forward, and the cap is rising, revenues are stabilizing, and young stars are commanding higher dollar figures at younger ages.

Luke’s deal underscores this changing market — and the fact that teams are increasingly willing to pay for upside and potential rather than waiting for players to fully establish themselves.

The Negotiation That Almost Didn’t Happen

According to reports, the process was far from straightforward. Hughes’ camp, led by veteran agent Pat Brisson, pushed hard for a six-year deal. The Devils resisted, not wanting to set the AAV at $9 million for that shorter term. New Jersey’s GM Tom Fitzgerald stood firm, wary of locking in a figure that could skew internal team salary balance.

The standoff continued until the 11th hour. Finally, a compromise emerged: Hughes and his agent agreed to extend the term to seven years, and in return, New Jersey agreed to the $9 million AAV. That structure gives Hughes long-term security while providing the Devils with an extra year of control in exchange for conceding on the cap hit.

By Tuesday afternoon, negotiations were still tense. By Tuesday night, Hughes was officially one of the highest-paid defensemen of his age in the league.

Family Business: The Hughes Dynamic

There’s little doubt the Hughes family bond played into negotiations. Quinn Hughes is the captain of the Vancouver Canucks. Jack Hughes is the face of the Devils’ forward group. Luke, the youngest, is now being rewarded as the organization’s next foundational piece.

Many around the league believe the family dynamic influenced the outcome. Jack’s $8 million AAV is widely regarded as one of the best-value contracts in the NHL. For the Devils, having him under team control at that price for five more years is a massive advantage. In turn, the Hughes camp may have viewed Luke’s deal as a way to balance the books for the family as a whole.

As one insider put it: “The Devils have Jack on a bargain. Now it’s Luke’s turn to get his.”

Nine Million for Potential, Not Just Production

Luke Hughes had a strong season in 2023–24, recording 44 points in 71 games as a 20-year-old defenseman. His skating, vision, and offensive instincts project him as a future star on the blue line. But $9 million per year for a player with two years of NHL experience is undeniably aggressive.

Just a few years ago, when Darnell Nurse and Zach Werenski signed contracts north of $9 million annually, the hockey world gasped. Today, that figure is increasingly becoming the benchmark for top young defensemen. The Hughes deal signals that if you’re a cornerstone blueliner with upside, $9 million is the new starting point.

The Lane Hutson Factor

Barely 30 seconds after Luke’s deal was announced, speculation in Montreal began swirling about Lane Hutson. The Canadiens’ Calder Trophy-winning defenseman will be eligible to sign an extension next offseason. Like Hughes, Hutson is a dynamic, offensive-minded blueliner coming out of his entry-level contract.

The Canadiens have already opened talks with Hutson’s camp, but no deal has materialized yet. Montreal has built a strong salary-cap culture, locking in players like Nick Suzuki, Cole Caufield, and Kaiden Guhle on reasonable long-term deals. Their challenge will be to secure Hutson without shattering that culture.

If Hughes is worth $9 million now, what does that mean for Hutson — who arguably has an even higher ceiling? Will Montreal try to sell Hutson on the idea of sacrificing a little salary in exchange for a deeper, more competitive roster? Or will Hutson’s camp point directly at Hughes and demand something equal or greater?

One GM summed it up simply: “Luke Hughes just raised Lane Hutson’s price without even trying.”

Cap Culture vs. Market Reality

Pierre LeBrun noted that the Canadiens are pushing a “cap culture” model, similar to what the Florida Panthers have cultivated. Florida won back-to-back Stanley Cups with players like Sam Reinhart and Sam Bennett taking less money than they might have earned elsewhere, prioritizing winning over personal gain.

Montreal hopes Hutson will buy into a similar vision. But in today’s market, where agents have fresh comps like Hughes and Kaprizov, convincing players to leave money on the table is a tougher sell.

The Hughes deal isn’t just a contract — it’s a new benchmark that reverberates across the league.

The Kaprizov Effect

The timing of Hughes’ deal also coincides with another bombshell: Kirill Kaprizov’s record-breaking eight-year, $136 million contract with Minnesota. That deal, with its $17 million AAV, instantly reset expectations for superstar forwards. Now, Hughes’ $9 million AAV looks less like an overreach and more like part of an inevitable trend.

As one agent told LeBrun: “The gravitational pull of Kaprizov’s contract means everyone’s going to ask for more. Luke Hughes just shows that teams are already bracing for it.”

The Devils may feel comfortable paying Hughes now, knowing the market is only going higher. In two or three years, $9 million for a top-pairing offensive defenseman could look like a bargain.

Around the League: Edmonton’s Goalie Gamble & Barkov’s Absence

While Hughes’ deal grabbed headlines, other stories are shaping the NHL landscape. The Edmonton Oilers acquired goaltender Connor Ingram from Utah for future considerations, with salary retained. Ingram will start in the AHL but could challenge for NHL minutes. For a team starved for reliable goaltending, it’s a low-risk flyer that could pay dividends.

Meanwhile, in Florida, devastating news struck: captain Aleksander Barkov will miss the entire regular season with injury, sidelining him for the 2026 Winter Olympics as well. Barkov’s absence is a seismic blow both to the Panthers’ Cup hopes and Finland’s Olympic aspirations. His leadership and quiet dominance are irreplaceable, but the Finnish camp is rallying behind players like Mikko Rantanen to fill the void.

The Panthers, however, remain committed to contention. GM Bill Zito is expected to aggressively pursue trade options before the March 6 deadline. If Florida can weather the storm until Matthew Tkachuk returns, they may still make another deep playoff push.

Final Thoughts

Luke Hughes’ $63 million deal isn’t just about one player’s payday. It’s a reflection of how fast the NHL’s economic environment is shifting. Young stars are commanding massive salaries earlier, teams are forced to choose between maintaining “cap culture” and overpaying to retain talent, and every new deal sets the stage for the next.

The Hughes brothers now combine for $17 million in cap space — a remarkable figure for two cornerstones still in their early 20s. For New Jersey, the hope is that investment pays off with long playoff runs and, eventually, a Stanley Cup.

For the rest of the league, the deal is both a warning and a blueprint: the market is changing, and the price of keeping your stars just went up again.