The Detroit Red Wings have made some big moves in NHL Free Agency. They kept veteran forward Patrick Kane on a one-year contract and signed two-time Stanley Cup champion Vladimir Tarasenko to a two-year contract. They are likely done shopping the open market, but they have some items left to take care of. One of those items, involving forward Joe Veleno, is now completed.

The Red Wings and Veleno have agreed to a two-year contract, according to Sportsnet's Elliotte Friedman. The Detroit center will earn $2.275 million in each of the next two seasons. This contract means that the two sides will avoid an arbitration hearing, which would have occurred later this month at the earliest.

Veleno is a former first-round pick of the Red Wings, joining the organization in the 2018 NHL Draft. The former Drummondville Voltigeurs star made his NHL debut during the 2020-21 season. In 2023-24, the Montreal native scored a career-high 12 goals and 28 points for the Red Wings while averaging nearly 14 minutes a game.

Joe Veleno contract extension could effect other Red Wings moves

Detroit Red Wings forward Joe Veleno (90) speaks to a teammate in warm up before playing the Toronto Maple Leafs at Scotiabank Arena.
Dan Hamilton-USA TODAY Sports

There is an interesting wrinkle to Veleno's new contract with Detroit. Since Veleno elected to go to arbitration, Detroit will now receive an additional buyout window. Teams receive an additional buyout window once players elect arbitration. They will have 48 hours to buyout a contract starting three days after an arbitration case is settled or awarded, according to PuckPedia.

The Red Wings don't necessarily need to buyout any contracts. They currently sit with around $17.6 million in cap space following the Veleno extension. However, it would not be surprising to see them try to clear additional cap space. In fact, they did so earlier in the offseason when they traded Jake Walman to the San Jose Sharks.

Two of Detroit's cornerstones — Moritz Seider and Lucas Raymond — are currently restricted free agents. Seider is Detroit's number one defenseman, and often faces the toughest assignments on the team. This past season saw him score nine goals and 42 points from the blueline. He is expected to receive a hefty raise entering his fourth NHL season.

Raymond, on the other hand, is coming off a legitimate breakout season. The Swedish forward recorded his first 30+ goal season for the Red Wings this year. Additionally, he led Detroit with 72 points in 82 games. The 22-year-old has not had a season with less than 45 points since he debuted in the league in 2021-22.

The Red Wings are likely to give both expensive long-term extensions. As a result, Detroit would do well to clear some cap space to give them more flexibility. Defensemen Olli Maatta and Justin Holl are among potential candidates to have their contract bought out if the Red Wings use their additional window.

Overall, Joe Veleno made some promising strides in 2023-24. He showed that he can produce some secondary offense, and at 24 years old, he could develop even further. It'll certainly be interesting to see how he performs in Hockeytown this upcoming season.