Earlier this morning news dropped that the Edmonton Oilers would be re-signing UFA forward Ryan Nugent-Hopkins to an eight-year contract extension paying him an AAV of $5.125-million.

Leader of the #KeepNugeForever fan club baggedmilk wrote about it here.

At first, the deal seems a little jarring. Eight years is a long time, especially for a 28-year-old, and $5.125-million is a lower AAV than I was expecting. But when you think about it, the deal, which is believed to include some level of no-movement clause(s), actually makes a lot of sense for both the player and the team.

Let’s dig into that.

Ryan Nugent-Hopkins is entering his 11th season of his career, all of which have been played with the Oilers after being drafted first overall in the 2011 NHL Entry Draft. He’s scored 185 goals and 478 points over his career settling in as a very effective top-six player.

According to hockeyviz.com, Nugent-Hopkins has provided offence at a seven per cent rate higher than league average and defence at a one per cent rate above league average. He’s consistently played against some of the league’s toughest competition and held his own admirably over the years.

He’s clearly committed to the Oilers and was willing to leave money on the table in order to gain long-term security. Even with a down year this year, Nugent-Hopkins likely could have secured at least $1-million more per year on his contract but not the length that he received from the Oilers.

Players are always looking for security and that’s exactly what he got here. Now, he gets the chance to continue what he started 10 years ago in chasing a Stanley Cup in Edmonton alongside Connor McDavid.

For the Oilers, this is solid value on the deal. Edmonton lowers the cap hit and extends the deal. Nugent-Hopkins is still relatively young at 28 and is in the prime of his career. Sure, there might be some concern about years 6/7/8 of his deal, but that’s an issue for another year.

Even still, Nugent-Hopkins seems to be one of those players who won’t have issues playing later into his career. He’s remained relatively healthy over his career, having virtually played every game in the last three seasons.

Not only that, but Nugent-Hopkins took a legitimate hometown discount to remain with the Oilers and there’s something to be said in that, too. He clearly wants to be an Oiler.

It gives Edmonton flexibility, too. Nugent-Hopkins took $1-1.5-million less than he realistically could’ve asked for. That goes a long way for the Oilers who can utilize that money in a buyout, in a trade, or to help acquire some help in free agency.

All in all, this is a solid deal all around. Edmonton gets to keep a cornerstone part of their franchise for a long time, and Nugent-Hopkins gets the security he was surely looking for.