After missing the playoffs for three consecutive years, the Pittsburgh Penguins are entering a pivotal offseason. The team is grappling with the challenge of rejuvenating an aging core while maintaining competitiveness. One potential strategy being considered is trading veteran defenseman Erik Karlsson. With the Penguins potentially heading into a rebuild, moving Karlsson could free up valuable cap space and bring in assets to help reshape the roster.
Karlsson Trade Depends on Timing, Salary Retention, and Bonus Payment Agreement
According to Pierre LeBrun of The Athletic, Erik Karlsson is open to waiving his full no-move clause, but only if he is traded to a legitimate Stanley Cup contender. This caveat is crucial because Karlsson retains full control over his trade destination. Given the Penguins’ uncertain future and potential rebuild, the
Erik Karlsson (NHL)35-year-old’s willingness to relocate hinges entirely on joining a team with serious playoff aspirations.
Karlsson’s hefty contract presents a significant hurdle in trade discussions. He is entering the seventh year of an eight-year, $92 million deal with a $10 million annual cap hit. Additionally, a $5 million signing bonus is due on July 1, which could further complicate trade negotiations. Teams interested in Karlsson might prefer to wait until the Penguins pay the bonus, but that delay could increase the asking price in terms of draft picks or salary retention.
Timing and Salary Retention Crucial as Karlsson Trade Talks Enter Critical Phase
LeBrun suggests that the best window to trade Karlsson would be before the start of free agency, allowing Pittsburgh to potentially retain a portion of his salary and make him more appealing to other clubs. A reduced cap hit—ideally around $7.5 million—could generate more trade interest. However, Pittsburgh is unlikely to retain salary unless they receive significant compensation and the acquiring team agrees to cover the full signing bonus.
Despite his age, Karlsson remains a productive player, having recorded 56 and 53 points over the past two seasons while playing all 164 regular-season games. His continued performance was further showcased when he represented Sweden at the 4 Nations Face-Off in February 2025.
Any team acquiring Karlsson would gain a reliable and experienced defenseman, but the complex financial implications of his contract make any trade a delicate and strategic negotiation.
