DALLAS — The Stars secured a key part of their top line for one more year, signing forward Joe Pavelski to a one-year contract extension on Friday afternoon.
Pavelski’s deal will carry a $5.5 million cap hit, and an additional $500,000 in performance bonuses. The performance bonuses are tied to the number of games Pavelski plays next season: he will receive $100,000 at each 10-, 20-, 30-, 40- and 50-game milestone. Pavelski also has a full no-movement clause in his contract, according to a source.
“Sarah, Nate and I have loved the city of Dallas and the Stars organization since day one,” Pavelski said in a statement. “We are very committed to winning here and have full belief in Tom Gaglardi and his family and Jim Nill to give our group every resource in order to do so. We have a great dressing room, and it was important to me, and my family, to show that we are all in.”
Pavelski, 37, is in the final year of a three-year contract with a $7 million cap hit, and was set to become an unrestricted free agent in the summer.
Pavelski leads the Stars in scoring this season, and his 59 points is tied for 22nd in the NHL. He’s on pace for an 86-point season, which would be the best of his career.
After a slow start in Dallas (14 goals and 31 points during his first season as a Star in 2019-20), Pavelski has been one of the team’s best players the last two seasons. He had 51 points in an abbreviated 56-game season last year and finished seventh in Selke Trophy voting.
This season, Pavelski has helped form one of the league’s best lines with Jason Robertson and Roope Hintz. Together, the trio has carried the offensive load for the Stars, and have put Dallas back in the thick of the playoff discussion.
“In his three seasons here, Joe has proven to be one of the strongest, most respected voices in the dressing room, as well as being one of the most consistent performers on the ice,” Nill said in a statement.
“He has played at an All-Star level this season, and by signing this deal now, it is a testament to what he sees in this organization and how this organization values what he brings day-in and day-out. He is a true professional, an incredible leader, and an example to everyone in our organization of what the standard is.”
By signing Pavelski, the Stars have removed his name from trade chatter, though that talk should have died down since the Stars’ on-ice performance has improved in the last month.
Last month, it was clear that the Stars wanted to extend Pavelski.
He was leading the team in scoring, and is a key presence in the dressing room. In December, when asked in San Jose whether a reunion with the Sharks was possible, Pavelski said that his preference was to remain in Dallas.
“We’re going to try to get through this year first, and we’ll figure it out,” Pavelski said. “We love it there. It couldn’t be any better for us right now, I think. Family’s doing great. It’s a great city. Really enjoy the guys in the locker room and the team. For us right now, that’s probably the No. 1 option.”
It was just about finding the right deal.
At one year, Pavelski’s market value was probably much higher than the $5.5 million ($6 million if you include performance bonuses) he signed for. Even at 37 years old, Pavelski’s production likely would have commanded a deal around $8 million, based on previous comparable players, but Pavelski instead took a discount to stay in Dallas.
Because the contract is for one year and because Pavelski is older than 35, he is eligible for performance bonuses to be added to his contract. Performance bonuses do not count towards the salary cap, unless a team is using long-term injured reserve. If a team is using LTIR, the bonus overages are applied to the following season’s cap.
With Ben Bishop’s contract on the books next season, the Stars are likely to be utilizing LTIR again in 2022-23, meaning Pavelski’s bonuses will probably impact the 2023-24 cap situation.
