If you’ve spent any time on Red Wings Twitter—or whatever we’re calling it these days—you’ve seen the panic. Every time Steve Yzerman signs a veteran to a three-year deal, the comments section melts down. "He's clogging the pipeline!" or "The Detroit Red Wings salary cap is a disaster!" Honestly, it's exhausting. But if you actually look at the math for the 2025-26 and 2026-27 seasons, the reality is a lot more boring, and a lot more promising, than the doom-posters suggest.
The Red Wings are currently sitting in a spot that most NHL GMs would kill for. They have their core locked up, their "bridge" veterans are falling off the books right as the cap is set to explode, and they have a wave of entry-level talent actually making an impact.
The Core is Locked, and It's Cheap
Let’s talk about the Big Three. Dylan Larkin ($8.7M), Moritz Seider ($8.55M), and Lucas Raymond ($8.075M). Back when these deals were signed, people balked. Now? With the salary cap projected to hit $95.5 million for the 2025-26 season and potentially clearing $104 million by 2026-27, these look like absolute heists.
Larkin is your captain and a point-per-game center. Seider is a workhorse who eats 25 minutes a night against the world's best players. Raymond just put up 80 points. You’re getting all three for about $25.3 million total. For context, some teams are paying two players that much.
Because Yzerman locked these guys in early, the Red Wings aren't facing the "Marner problem" or the "Nylander problem." They aren't negotiating with their stars while the cap rises; they already have them at fixed costs. This is the foundation of the Detroit Red Wings salary cap strategy. It’s about cost certainty.
The Veterans Everyone Loves to Hate
Okay, let’s address the elephant in the room. Andrew Copp ($5.625M) and J.T. Compher ($5.1M).
Are these overpays? Probably.
Do they hurt the team? Not as much as you think.
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Copp and Compher are the "floor" guys. They were brought in to make Detroit a hard team to play against while the kids were in Grand Rapids. The beauty of these deals is that they are finite. Copp is signed through 2026-27. Compher through 2027-28. By the time the Red Wings actually need that $10M+ to pay for the next wave of extensions—think Simon Edvinsson or Marco Kasper—these veteran contracts will be in their final years or gone.
Why the 2026 Offseason is the Real Turning Point
If you look at the current projections, the Detroit Red Wings salary cap space for the 2026-27 season is staggering. We’re talking about roughly $40 million to $44 million in projected space.
That is "go big-game hunting" money.
By the summer of 2026, several things happen simultaneously:
- Ben Chiarot’s $4.75M comes off the books.
- Justin Holl’s $3.4M (mostly buried or gone) is officially off.
- Cam Talbot and Erik Gustafsson are UFAs.
- Patrick Kane and James van Riemsdyk will likely have moved on or retired.
This creates a massive vacuum. Yzerman isn't just "managing" a cap; he’s clearing a runway. While fans are worried about a $2M overpay on a bottom-six winger today, the front office is looking at a 2026 market that could include names like Artemi Panarin, Cale Makar (RFA/UFA status pending), or Kirill Kaprizov.
Now, Detroit might not land a superstar. They might just use that space to absorb a bad contract from a desperate team in exchange for more first-round picks. That’s the Yzerman way. Flexibility is the ultimate currency in the NHL.
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The "Cheap" Help: Kasper and Edvinsson
You can't build a winner with just $8M players. You need the guys making $900k to play like they make $4M.
Marco Kasper is the prime example here. Making under $1M on his entry-level deal, he’s already showing he can handle second-line minutes. Simon Edvinsson is another one. Even with a looming extension, his current cap hit is a gift.
Then there’s Axel Sandin Pellikka. He’s coming. When he hits the roster on his ELC, he provides elite power-play production for the price of a league-minimum veteran. This "ELC staggering" is how the Blackhawks won in the early 2010s and how the Lightning stayed relevant for a decade. Detroit is finally in that cycle.
Managing the "Dead Money" and Buyouts
It's not all sunshine. The Red Wings are still paying for the past. The Justin Abdelkader buyout is still there, haunting the books at about $1.05M. It’s a small amount, but in a hard-cap league, every dollar matters.
There’s also the issue of performance bonuses. Guys like Patrick Kane often have "reachable" bonuses based on games played or points. For the 2025-26 season, Detroit has to account for millions in potential bonus carryovers. This is why you often see the Red Wings carrying a $1M or $2M "buffer" during the season. They aren't being cheap; they're being prepared.
The Goaltending Gamble
The most interesting part of the Detroit Red Wings salary cap right now is the crease. They have John Gibson (at $6.4M) and Cam Talbot ($2.5M). That’s nearly $9M tied up in goaltending.
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Is it worth it?
In 2026, Talbot is gone. Gibson has another year. But waiting in the wings is Sebastian Cossa.
Cossa is the key to the whole financial puzzle. If Cossa becomes a legitimate NHL starter while on his entry-level or a cheap bridge deal, Detroit suddenly has an extra $5M to spend on a top-flight defenseman. If he busts, they have to go back to the expensive UFA market.
Actionable Insights for Fans
Stop looking at the total "Cap Hit" and start looking at "Cap Percentage."
When Dylan Larkin signed for $8.7M, it was about 10.5% of the cap. In 2026, that same $8.7M will represent about 8.3% of the cap. He’s effectively getting "cheaper" every year he stays on that contract.
If you want to track the health of the Red Wings' finances, watch three things:
- The Edvinsson Extension: If Yzerman gets him for under $7M long-term, it's a massive win.
- The 2026 UFA Class: Watch who Detroit doesn't sign this summer to see how much they are saving for the 2026 "super-class."
- The Trade Deadline: Look for Yzerman to take on "salary dumps" for picks. It’s the clearest sign he thinks the window is opening.
The Detroit Red Wings salary cap isn't a cage; it's a tool. For the first time in a decade, the team has the stars, the prospects, and the room to make a move that actually matters. The "Yzerplan" has always been about 2025 and 2026. We're finally here.
To keep a pulse on these numbers as they shift, you should regularly check the live updates on PuckPedia or Spotrac, as a single mid-season trade or injury-reserve placement (LTIR) can swing the available "Deadline Cap Space" by millions in an afternoon.