Palmieri signed a short-term deal to remain with the Islanders.

• Player Overview
• Comparables
• Final Analysis

The New York Islanders signed forward Kyle Palmieri to a two-year extension last week, which carries a $4.75M cap hit. The deal carries a full no-trade clause in the first year of the contract, before turning into a 16-team no-trade list in 2026, per PuckPedia.com.

Below, we take a look at whether the Islanders are getting fair value with the contract.

Player Overview

Beginning his career with the Anaheim Ducks, Palmieri spent parts of five NHL seasons with the team, before being dealt to the New Jersey Devils in the summer of 2015.

In New Jersey, Palmieri was able to provide top-six offense, producing at an 82-game rate of 29 goals and 55 points across six seasons with the Devils. Set to become an unrestricted free agent in 2021 though, Palmieri was then traded to the New York Islanders alongside Travis Zajac, for a package centered around a first-round pick.

With the Islanders, Palmieri has still been able to provide decent offense into his 30s. He’s produced at a bit lower of a rate in his tenure with New York, scoring at an 82-game pace of 23 goals and 46 points, but remains one of the team’s more impactful forwards.

It seemed like there was a good chance Palmieri could get dealt prior to the deadline this year, but the Islanders opted to hang onto him instead. He may not be as productive as he once was, but remains a fairly well-rounded winger who’s good around the net and consistently plays with intensity.

Comparables

Below, we examine how Palmieri’s deal compares to recent contracts for other forwards. For more information on the stats/tables used below, including how the payment rate in projections is determined, visit the About the Site page.

With Palmieri now 34 years old, the comparables used will generally be wingers who were near his age in the first year of their contract, with select centers included as well. Note: ages listed in the table are based on a player’s age by Dec. 31 in the first year of their contract.

2 YEARS

A two-year term was expected for Palmieri’s deal, with many comparable wingers signing their respective contracts at the same length over the past couple years. Even in terms of a cap hit, we’ve seen four different wingers in Jordan Eberle, David Perron, Jason Zucker and Vladimir Tarasenko all sign at the exact same cap hit recently, with others close by as well.

At the same time, all of Eberle, Perron, Zucker and Tarasenko all had a higher points-per-82 rate than Palmieri in their signing year, with three of the four also having higher production over their respective careers. On a cost-per-point basis, nine of the 11 comps listed would’ve projected that a deal for Palmieri should come in below $4.75M. Seven of the comps would’ve projected Palmieri’s deal to come in between $3.5M and $4.7M.

That said, we also don’t see similar production between those four comps who previously signed at a $4.75M cap hit. As a result, it points to the idea that a difference in production may not be the overly significant in determining the cap hit. The five wingers including Palmieri who signed at a $4.75M cap hit all play in similar role, as a winger who can help to round out a top-six group, but shouldn’t necessarily be counted on for more than that from year to year.

So while Palmieri’s production may point to $4.75M being a bit of an overpayment, there’s some precedent for him to receive that exact contract.

3 YEARS

While Palmieri signed for two years, there was also a less likely possibility of a three-year deal, with comps below.

Perhaps the most notable recent comp was Taylor Hall, who’s turning 34 years old this year and signed a three-year deal last month. His contract points to the idea that Palmieri likely could’ve received a three-year deal at a reduced cap hit (even if other comps would point to a cap hit more in line with several of the two-year comps listed).

It’s much more common for a winger around Palmieri’s age and production to take a two-year contract instead, but it wouldn’t have been unheard of for him to get an extra year.

Final Analysis

A two-year contract for Palmieri was expected, with many comparable wingers signing at this length over the past few years.

The $4.75M cap hit also comes with precedent, considering how many other comparable wingers signed the exact same $9.5M, two-year deal. Palmieri’s production as compared to others who signed that deal does still point to the $4.75M cap hit potentially being a bit rich, but the Islanders also wouldn’t have had a ton of leverage, considering their current position.

Palmieri should provide decent short-term value for the Islanders, and could be used as a trade chip in the second year of his deal, if New York remains outside the playoffs at that point.