Grading Ryan McLeod’s 4-year, $20 million contract extension with Sabres

The Buffalo Sabres signed forward Ryan McLeod to a four-year contract extension on July 1, which carries a $5 million cap hit.

McLeod will turn 26 years old in September and was acquired from the Edmonton Oilers last offseason. In his first season with the Sabres, McLeod scored 20 goals and 53 points in 79 games.

Below is an analysis of how the contract looks for the Sabres.

McLeod has been a great fit in Buffalo

In order to acquire McLeod last summer, the Sabres paid a pretty big price. The team parted with 2022 ninth-overall pick Matthew Savoie in the trade, who has the upside of a top-six forward. Based on McLeod’s production to that point in Edmonton, it seemed like an a lot to give up.

McLeod had been a roster regular with the Oilers for three seasons prior, and emerged as a solid bottom-six center. However, he had only produced at an 82-game rate of around 13 goals and 29 points over that time.

However, McLeod’s production reached career highs in his first season with the Sabres. He ranked fifth on the team in both goals and points, while getting over 2:30 per game more ice time with the Sabres than any other season of his career.

McLeod also has a well-rounded game, and has emerged as a reliable option down the middle on defense. Now with his production coming along as well, McLeod could slot in as a very effective long-term, third-line center in Buffalo, with the ability to move up the lineup if needed.

Four-year term is fair for McLeod

With a four-year deal, the Sabres also keep McLeod around long enough to build around going forward. The organization is still desperately trying to end their 14-year playoff drought, and McLeod is an important piece to keep in the fold.

On a shorter deal, the Sabres would risk walking McLeod right to unrestricted free agency in a couple of years. Especially considering what they paid for him, this didn’t seem like of a realistic option.

There was also the option to go longer than a four-year contract, and given his age, there could’ve been some sense in extending McLeod on a five or six-year deal instead. That said, it likely would’ve resulted in a higher cap hit, and McLeod really only has one season of producing at a 50-point rate. His shooting percentage was also quite a bit higher this year than past seasons, pointing to the fact that he may not necessarily hit 20 goals consistently going forward.

Regardless, four years marks a fair term for McLeod’s deal. The center is still only in his mid-20s, so there shouldn’t be any risk of age-based decline across the deal.

The cap hit is reasonable and trade protection is minimal

At $5M per year, the Sabres should get decent value from the contract. Especially as the salary cap rises, it could end up looking quite a bit cheaper in the later years of the deal.

Plus, if McLeod can repeat his production from this past season, it has the potential to end up being a big win for the Sabres. Based on McLeod’s age, there’s also still the possibility we see him continue to grow his game from here.

Even if the forward can’t consistently replicate the same production, the contract will still be very worthwhile for the Sabres if McLeod can remain a defensively-reliable third-line center, who can produce around 40-plus points per year.

Another bonus is that the trade protection in the deal is quite minimal. McLeod wasn’t eligible for trade protection until 2027, but even in the final two years, his no-trade clause is very limited.

With only a five-team no-trade clause, it gives the Sabres some options if needed. If a larger deal presented itself, there’s always the possibility to use the forward as a trade chip. Meanwhile, if McLeod doesn’t see the same success in Buffalo, there’s more of a possibility to get out of the deal.

Again, it’s not overly realistic that a trade involving McLeod would come anytime soon. He’s shown to be a fit in Buffalo so far, and he’s a great piece to build around. But the lack of trade protection does at least leave the Sabres with options later on.

Contract grade

For the Sabres, a four-year deal makes sense. The contract will take the forward until just shy of his 30th birthday, so the team will have McLeod for what should be some of the prime years of his career. While there was the option to give more term, it would’ve likely resulted in more risk, and a higher cap hit.

Sabres grade: B+

For McLeod, he gets by far the biggest contract of his career thus far. Plus, the four-year term also sets him up to hit unrestricted free agency in 2029. If he can continue to have strong results in Buffalo, he could be due for an even larger pay-day at that point.

McLeod grade: B+