The Pittsburgh Penguins surprised many around the NHL when they signed Ville Koivunen to an eight-year contract extension despite the young forward having limited NHL experience.
While some fans questioned why the organization committed so many years to a player who has yet to establish himself as a full-time NHL contributor, the Penguins appear to have a very clear long-term strategy.
According to a new report, general manager Kyle Dubas views the contract as a calculated gamble rather than a risky overpay.
Why did the Penguins give Ville Koivunen an 8-year deal?
According to Josh Yohe, the Penguins believe the contract carries much more upside than downside. “I was told that Dubas sees the Koivunen deal as ‘low risk, high reward.’ Which is to say, the cap is rising to the point that he’s willing to risk losing $4 million annually for eight years if Koivunen is a bust.”
The key factor is the NHL’s rapidly increasing salary cap, which could make Koivunen’s $4 million annual cap hit look like a bargain if he develops into a top-six forward over the next several seasons.
A bet on the Penguins’ future
The Penguins are trying to balance two timelines. In the short term, Koivunen is expected to help support veterans such as Sidney Crosby, Evgeni Malkin, and Erik Karlsson as the franchise attempts to remain competitive.
Long term, however, Pittsburgh believes the 23-year-old can become one of the pillars of the organization’s next era. If Koivunen reaches his projected ceiling, Dubas could end up with one of the NHL’s best value contracts. If not, the Penguins believe the rising salary cap will make the financial risk manageable.
