The Colorado Avalanche have agreed an eight-year, $163.2 million contract extension with defenceman Cale Makar, making him the NHL’s highest-paid player by average annual value. The deal underlines both Makar’s standing among the league’s elite players and the increasing salaries driven by a rising salary cap, while increasing expectations that Colorado will remain a regular Stanley Cup contender.

The extension, which begins after this season, is worth $20.4 million annually, surpassing Macklin Celebrini’s $18.8 million annual contract with the San Jose Sharks and Leo Carlsson’s $18 million offer sheet. Makar, a two-time Norris Trophy winner, has recorded 507 points in 470 NHL games and was a key player in Colorado’s Stanley Cup-winning team.