The Vancouver Canucks have signed goaltender Thatcher Demko to a three-year contract extension that carries an $8.5 million annual average value. General manager Patrik Allvin made the announcement early Tuesday morning, two hours before NHL free agency officially opens.

Here is what Allvin said about the deal:

“Thatcher is one of the top goalies in the National Hockey League and a key leader in our locker room,” said Allvin. “His desire to continue his career in Vancouver says a lot about what we are trying to accomplish and where this organization is headed. Demmer is one of the hardest working players on our team and gives our group great confidence when he takes the net. A complete package of size, strength, rebound control, and athletic ability, our players know that they have an opportunity to win each and every game he plays.”

Both the Canucks — via president of hockey ops Jim Rutherford — and Demko made it clear that they hoped an extension would get done this offseason. After a 2024-25 plagued by injuries, Demko was heading into the final year of his current contract, a five-year deal that carried a $5 million cap hit.

According to Rick Dhaliwal, the contract has a no-move clause in all three years of the deal. It will kick in for the 2026-27 season and expire at the end of the 2028-29 season, when Demko will be 33 years old.

Admittedly, we didn’t think the cap hit would end up being this high for Demko. He’s an elite goaltender when healthy, but the health concerns seemed like they’d be enough to lower the price below at least $8.25 million — the cap hit we’ve seen multiple starting goaltenders around the league like Jake Oettinger, Jeremy Swayman, and Linus Ullmark sign for. Evidently, Demko’s health concerns affected the term the Canucks felt comfortable committing to him more than it did the money they’ll pay him annually.

When the extension kicks in, Demko will jump from 20th to the fourth-highest paid goaltender in the league.

The Canucks already signed Kevin Lankinen to a contract extension that kicks in this next season. It’s a four year deal that carries a cap hit of $4.5 million, meaning the Canucks will be spending $13 million on goaltending in two years.