Report: Penguins Could Offer Major Retention On Erik Karlsson To Facilitate Trade

The Pittsburgh Penguins are in the market to make a deal to improve the team for the future. We heard earlier on Sunday that they're willing to trade a veteran forward. But three-time Norris Trophy winner Erik Karlsson could also be on the block. 

And as for the $10 million cap hit that the Penguins hold on him for this final year of his contract, The Fourth Period has suggested that the team could retain a huge chunk of it to facilitate a trade, if necessary. 

Star defenceman Erik Karlsson is also in the final year of his current contract and could be a prime candidate to be moved this season if the Penguins fall out of the playoff picture later in the year. He owns a $10 million salary cap hit and the Penguins could be in a position to retain as much as half of that to help facilitate a trade if he waives his no-movement clause.

The Pens have two salary retention slots to play with, so it's not out of the question. It would only be for the rest of this season. 

The Penguins have lost three straight after a decent start to the season. If the slide continues and the team finds itself struggling to stay in the playoff picture, a trade of Karlsson is certainly on the table, as they would not want to lose him for nothing as an unrestricted free agent after the year. The team currently has $9M in cap space.

Karlsson was a 100-point man in  2022-23, earning him his third Norris Trophy as the league's top defenseman. But he had a disappointing first two years with the Pens after they pulled off a blockbuster three-team deal with the San Jose Sharks to acquire him. He recovered for a strong season in 2025-26, and if he can retain that level of play at the age of 36 this year, Pittsburgh could get a nice package for him at the deadline. 

Karlsson already has nine assists in nine games this season. So far, so good.