Days separate hockey fans everywhere from the 2025 NHL Draft, which begins June 27 and takes place at the Peacock Theater in downtown Los Angeles, California.
This year marks the first time the NHL is using a centralized draft location while representatives from all 32 clubs remain at their respective facilities and participate virtually. The unique format allows prospects and fans to experience the excitement in person while teams make decisions from their home markets.
With hundreds of players set to be drafted into the NHL and sign their first deals, fans might wonder exactly how salaries work for hockey’s newest generation of players and how much they could potentially earn.
The salary structure represents a significant investment in young talent, with the league’s collective bargaining agreement ensuring fairness across all organizations.
How NHL Draft Pick Salaries Actually Work
All players selected in the NHL Draft by their respective clubs sign entry-level contracts, or ELCs. Under the current NHL collective bargaining agreement, the maximum amount a player can earn on their ELC is $975,000 per season for 2025 draft picks, but that number can increase with sponsorship or endorsement deals.
This salary cap structure was implemented to maintain competitive balance across the league. The maximum has gradually increased over recent years, from $925,000 for 2019-2021 picks to $950,000 for 2022-2023 selections, and now $975,000 for 2024-2025 draft classes.
Performance bonuses can also be attached to that figure, which may include games played, total points, individual awards like the Calder Trophy, and team achievements. These bonuses can significantly boost a player’s earning potential during their rookie contract, sometimes doubling their total compensation.
Signing bonuses for players inking their ELC can’t exceed 10 percent of the contract. These bonuses are guaranteed money paid regardless of where the player ultimately performs, whether in the NHL, American Hockey League, or junior hockey.
ELC length depends on the player’s age at signing. Players who fall into the 18-21 age range receive a three-year entry-level contract. Players who are 22 or 23 receive a two-year ELC, while 24-year-olds earn a one-year ELC. This system encourages teams to develop younger players while providing veterans with quicker paths to unrestricted free agency.
The “slide rule” also plays a crucial role for younger players. If an 18 or 19-year-old doesn’t play at least 10 NHL games in a season, their contract can “slide” forward a year, essentially extending their entry-level period. This protects both players and teams during the development process.
Notable Entry-Level Contracts for Recent Top Picks
Every great NHL star started somewhere, and multiple recent draft picks are destined for the Hockey Hall of Fame. The structure of these contracts shows how the league has evolved its approach to compensating young talent.
Auston Matthews, current captain of the Toronto Maple Leafs who was selected first overall in the 2016 NHL Draft, immediately signed a three-year ELC worth $925,000 base salary. It included potential bonuses and carried a potential value of $3.775 million per year. Matthews’ contract set the standard for how teams approach maximum-value ELCs for franchise players.
The ELC for Connor McDavid, current captain of the Edmonton Oilers who was drafted first overall in 2015, featured a $925,000 base salary per season but had the potential to earn up to $2.85 million in total performance bonuses. McDavid’s bonuses were structured around individual achievements like the Hart Trophy, which he won in his second season.
Connor Bedard, selected first overall by the Chicago Blackhawks in 2023, is entering the final season of his three-year ELC and counts $950,000 against the team salary cap. His deal carries a total value of $2.85 million over three years, reflecting the increased salary limits for recent draft classes.
These contracts represent just the beginning of these superstars’ earning potential. After completing their ELCs, players like McDavid have signed massive extensions worth over $100 million, showing the long-term value of developing young talent through the entry-level system. The structured approach ensures teams can invest in prospects while maintaining competitive balance throughout the league.
