What happened: Alex Ovechkin is returning to the Washington Capitals on a one-year contract, the team announced Thursday. The deal carries a $1 million base salary plus performance and signing bonuses tied to games played.

Why it matters: Keeping Ovechkin secures the face of the franchise for another season and anchors Washington's veteran core as the club continues to build its roster this offseason. The bonus-heavy structure keeps his base salary low while rewarding availability, giving the Capitals cap flexibility alongside their recent signing of Boone Jenner.

What to watch: Watch for how Ovechkin figures into Washington's lineup and leadership plans heading into the 2026 season, and whether he clears the 10-game threshold that unlocks the bulk of his compensation.