The New York Islanders drafted Matthew Schaefer first overall in the 2025 NHL Draft. Schaefer separated himself from his peers in the draft this past season. And he certainly has a bright future ahead of him. On Monday, though, New York and Schaefer made a major decision regarding his more immediate future in hockey.

Schaefer has signed his entry-level contract, as the Islanders announced on social media. As with most entry-level contracts in the NHL, this is a three-year deal. New York did not confirm the financial terms of this deal. According to PuckPedia, though, Schaefer's entry-level contract will carry a cap hit of $975K.

The Islanders defenseman had an injury-shortened junior season in 2024-25. However, he showed enough with the Erie Otters to become the first overall pick. The 17-year-old scored seven goals and 22 points in his first 17 games with the Otters last season. He suffered an injury at the IIHF World Championships that ended his season, as mentioned.

Where Islanders' Matthew Schaefer could play in 2025-26

Erie Otters defenseman Matthew Schaefer, right, controls the puck against the Kitchener Rangers at Erie Insurance Arena.
GREG WOHLFORD/ERIE TIMES-NEWS / USA TODAY NETWORK via Imagn Images
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Schaefer is under the age of 18 as of now. And he won't turn 18 until early September. As a result, the Islanders draft pick has two straightforward options for the next step in his professional hockey career.

On one hand, Schaefer could return to junior hockey. He could rejoin the Otters and help them try and win the Ontario Hockey League next season. If they win the OHL Championship, he could then try and win the Memorial Cup, which is the top prize in Canadian major junior hockey.

The other option is that he begins the season with the Islanders. This is a likely scenario for a few reasons. Chief among them is a provision in the collective bargaining agreement. Schaefer can appear in nine games before the first year of his entry level contract comes into effect.

New York certainly has high hopes for Schaefer's NHL future. Signing him to this contract is the first step toward realizing his potential. It will definitely be interesting to see where he begins the 2025-26 season.