Senators sign Jake Sanderson to 8-year, $64.4 million extension: Is it a bargain?

The Ottawa Senators signed defenseman Jake Sanderson to an eight-year, $64.4 million contract extension, the team announced Wednesday. Here’s what you need to know:

The deal includes a 10-team no-trade clause that will apply to its final three seasons.
Sanderson was the No. 5 pick in the 2020 NHL Draft.
The 21-year-old logged 32 points (four goals, 28 assists) in the 2022-23 season. He was named to the NHL’s All-Rookie Team on defense.

Sanderszn just got a whole lot longer!! 😏⁰⁰

The #GoSensGo pic.twitter.com/6ptELYAUnB

— Ottawa Senators (@Senators) September 7, 2023

The Athletic’s instant analysis:

How big of a gamble is this for Ottawa?

By signing Sanderson one year ahead of him hitting restricted free agency, the Senators are hoping to duplicate the gamble they took with Tim Stützle last fall.

Ottawa signed Stützle to an eight-year, $66.8 million contract when he was in the same boat last September and he responded with a breakout 90-point season. If Ottawa waited to sign Stützle until after the season, the team likely would have been forced to pay north of $10 million per year for his services.

General manager Pierre Dorion is hoping Sanderson will have a similar breakout campaign in 2023-24. Last season, Sanderson emerged as Ottawa’s most dependable and reliable defenseman, despite the fact he was an NHL rookie.

He led all Ottawa defensemen in shorthanded time on ice and by the end of the season, he was seeing significant time on the power play as well. If he continues to see time on both special teams units, there is a chance he could emerge as Ottawa’s most-used defenseman as early as this season — even with the likes of Thomas Chabot and Jakob Chychrun in the mix.

When they drafted him fifth in 2020, the Senators believed Sanderson had the potential to be their future No. 1 defenseman. This contract shows they still view him in the same capacity. — Mendes

Where does this contract put Sanderson compared to his peers?

The closest comparable for Sanderson’s deal is probably Miro Heiskanen from the Dallas Stars, who signed an eight-year deal with an $8.45 million cap hit back in 2021. The Senators are banking on the fact Sanderson’s game will mature in a similar path to Heiskanen, who inked his contract after notching 27 points in 55 games in 2020-21.

Last season — the second year of his deal — Heiskanen exploded for 73 points for the Stars. Hitting the 70-point mark might be a touch unrealistic for Sanderson, but the defenseman has always had underrated offensive talents. There is certainly room for Sanderson to grow his offensive game during the window of this contract.

Sanderson is now making a touch more than the $7.85 million AAV carried by Vancouver’s Quinn Hughes — but the Vancouver Canucks defenseman only has four years remaining on that deal.

Given where many project Sanderson’s game, this feels like a contract that will be a bargain for Ottawa in the years ahead. It will be interesting to watch the ripple effects of Sanderson’s team-friendly deal on fellow defensemen such as Owen Power and Moritz Seider within the Atlantic Division. Both of those young stars also need new contracts after this season. — Mendes

What does this mean for Ottawa’s cap situation down the road?

Dorion’s time as general manager has been littered with highs and lows, but one thing he should be applauded for is locking up Ottawa’s young core to reasonable, team-friendly contracts.

With Sanderson now signed through the 2031-32 season, Dorion has most of the key players of his team under wraps for the foreseeable future. Stützle is starting the first season of his eight-year deal in 2023-24, while captain Brady Tkachuk still has five years remaining on his contract that comes with an $8.25 million cap hit.

Dorion was able to lock up his three highest draft picks to long-term deals that all fell under $8.5 million per season — which has to be considered a massive win in the salary cap era. Other stars like Josh Norris (seven more years with a $7.95 million AAV) and Chabot (five more years with an $8 million AAV) are also signed for the long haul.

Ottawa still needs to find room to sign restricted free agent Shane Pinto at some point before the start of the regular season. That might be a significant challenge, considering Ottawa only has just under $900,000 in cap space available for this upcoming season. While the Pinto situation still looms large, Dorion will certainly take a day or two to bask in the success of locking up Sanderson to a long-term deal. — Mendes

What they’re saying

Dorion said Sanderson’s “transition to the pro game has been flawless” in a release Wednesday.

“He’s a very mature young man who demonstrates a routine and skillful ability to play important minutes with poise,” Dorion added. “An effortless skater who holds himself to a high standard, he has the talent to be one of the best all-around defensemen in the NHL for years to come. We’re very pleased to have another significant member of our core group of players under long-term contract.”

Backstory

Sanderson, a native of Whitefish, Mont., was a standout player at the University of North Dakota for two seasons. He represented the United States at the 2022 IIHF World Junior Championship, where he was team captain, and at the Beijing Olympics.

Required reading

(Photo: Jason Mowry / USA Today)