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Braden Holtby signs five-year contract with Capitals, avoids arbitration

After going through the rigors of an arbitration hearing in Toronto on Thursday morning, Braden Holtby and the Washington Capitals reached an agreement on a five-year, $30.5 million contract, which the two sides signed on Friday afternoon.

The decision means Holtby, formerly a restricted free agent, and the Capitals will not be bound by the ruling made from that hearing — one in which the team made a one-year offer of $5.1 million as Holtby’s agent pressed for $8 million.

The $6.1 million average annual value of Holtby’s contract will carry the seventh-highest salary cap hit for a starting goaltender in the NHL.