Less than two weeks after his tirade, on March 1, 1997, Oates was traded to the Washington Capitals. In the trade, Oates, Bill Ranford and Rick Tocchet went to Washington in exchange for Jim Carey, Anson Carter, Jason Allison and a draft pick. Oates initially refused to report to Washington, demanding his contract be renegotiated, but chose to join the team after a four-day holdout. He continued to demand a new contract in the off-season, while his agent claimed Oates would retire before playing for the Capitals again. After several months of contentious negotiations, the two sides agreed to a three-year contract worth around $2.9 million per season with an option on a fourth year.