Alex Ovechkin Signs a One-Year Contract with the Capitals

Alex Ovechkin, as we know, was one of the big names on the free-agent market. The Russian was a free agent… but in his case, the main question was whether or not he would return for another season in the NHL.

Because, in reality, he would never have signed anywhere other than Washington.

And now the Capitals have just made the announcement: Ovechkin will be back next year. He's signed a one-year contract worth $4.25 million.

IT'S SO NOT O-VER, BABES

The Washington Capitals have re-signed captain Alex Ovechkin to a one-year contract extension. Ovechkin's contract will carry an average annual value of $4.25 million.#ALLCAPS | #Gr8ness pic.twitter.com/MFudDudbiu

— Washington Capitals (@Capitals) July 2, 2026

It should be noted, however, that the Russian could end up earning significantly more than $4.25 million. As a player over 35 years old, he was eligible to sign a contract with performance bonuses.

And that's exactly what happened: Ovechkin will receive a $4.75 million bonus if he… plays 10 games. Basically, barring a catastrophe, he'll earn $9M… but the Capitals will have the luxury of deferring his $4.75M bonus to their 2027–28 payroll in order to have a bit of flexibility in 2026–27.

Ovechkin: 1 x $4.25M cap hit / $9M AAV

$1M salary + $3.25M signing bonus
$4.75M bonus after 10 games played

— NHL News (@PuckReportNHL) July 2, 2026

More details to come…