It has an average annual value of $1.5 million.
The 28-year-old forward could have become an unrestricted free agent after this season. He has scored 19 points (11 goals, eight assists) in 40 games, his first season with the Capitals after signing a one-year, $735,000 contract Dec. 22, 2020.
"I think it's a mix of a lot of things," Sheary said Thursday when asked why he decided to sign a new contract with Washington. "I came into a winning team with a winning culture. I've said that multiple times, but I think I fit into kind of that role. I'm a complementary player that can play up and down the lineup and with the skill and the talent that's on this team, I think I was just able to fit in seamlessly and had some success with a lot of different players. So I think it was a no-brainer for me when I was offered the contract to come back."
The two-time Stanley Cup winner for the Pittsburgh Penguins in 2016 and 2017 has scored 169 points (83 goals, 86 assists) in 365 NHL regular-season games for the Penguins, Buffalo Sabres and Capitals, and 21 points (six goals, 15 assists) in 61 Stanley Cup Playoff games.
"He's done it everywhere," coach Peter Laviolette said Wednesday. "He's bounced around from line to line and he's been on the power play. He's played first line. He's played third line. At the beginning of the year, he was (a healthy scratch for two games). So you've got to give him credit because he worked for everything. That's what he said when you came here. He said he just wants an opportunity.
"I don't know if it's a surprise, but I think everybody really admires and respects the way he went about his work this year. He doesn't make any noise. He just competes really hard out on the ice and put himself in a position where you want him out there a lot in different situations."
The Capitals (28-11-4) lead the eight-team MassMutual East Division by two points over the New York Islanders and are four ahead of the Penguins. The top four teams will qualify for the playoffs.
Washington hosts Buffalo on Thursday (7 p.m. ET; NBCSWA, MSG-B, NHL.TV).
