The Pittsburgh Penguins are facing some tough decisions this offseason. With the franchise looking to retool and trade winds swirling around several veteran players, one name keeps coming up in conversations: Erik Karlsson.
A new report from NHL insider Chris Johnston makes the star defenseman’s future in Pittsburgh even more interesting.
What Does Erik Karlsson’s Willingness to Move Mean for Pittsburgh?
Erik Karlsson carries a massive $11.5 million cap hit for the next two seasons, though Pittsburgh is responsible for only $10 million of that. The San Jose Sharks, his former team, are still covering the remaining $1.5 million.
Here’s where things get interesting: his $5 million signing bonus for this summer has already been paid. That leaves just $11.5 million in total cash owed over the next two years, making him a more manageable financial commitment for teams needing offensive punch from the blue line.
Jeff Skinner, signed 1x$3M by SJ, is a veteran scoring winger with puck skills, scoring touch, and agility but no speed, physicality, or defence. #SJSharks pic.twitter.com/qFzA8116FF
— JFresh (@JFreshHockey) July 11, 2025
While Karlsson holds a full no-move clause, insider Chris Johnston of TSN and The Athletic revealed on his latest podcast that the defenseman is open to being traded.
However, Karlsson has made it clear there are only a few teams he would be willing to join. Johnston didn’t name the possible destinations, but this willingness to be moved opens the door for potential deals.
Since winning his third Norris Trophy with a 101-point season just two years ago, Karlsson’s production has dipped. Still, he remains a valuable offensive contributor, recording 56 and 53 points in the past two seasons while averaging over 23 minutes of ice time per game.
While he’s never been renowned for his defensive play, Karlsson remains a legitimate top-four defenseman in the NHL. Teams looking for power-play help and puck movement from the back end would find plenty to like about his skill set.
Why Are the Penguins Confident They Can Get Value Back?
What’s particularly noteworthy is that Pittsburgh doesn’t view Karlsson as a cap dump. According to Johnston, General Manager Kyle Dubas seeks a positive return in any trade scenario.
This approach makes sense considering the current NHL landscape. The UFA market for defensemen has mostly dried up, and over a third of the league has enough cap space to absorb Karlsson’s deal without salary retention. Should Pittsburgh agree to retain some salary or take back players, even more teams could become serious trade contenders.
RELATED: Erik Karlsson Trade Rumors Heat Up as Penguins Eye July Deadline
The situation is much different than when San Jose tried to move him two years ago. Back then, few clubs had the cap room or flexibility to make a deal work. Now there’s a better chance for Dubas to stir up a meaningful market.
That said, moving a high-salary veteran with a no-move clause is never easy, even with rising salary caps on the horizon. Plus, while the Penguins didn’t give up significant assets to get Karlsson in the first place, they’re unlikely to fetch a major piece for their rebuild in return.
Still, the timing works in Pittsburgh’s favor. The offseason generally offers greater flexibility for teams to make bold, strategic moves under the cap, compared to the in-season trade window, where injuries and roster limits complicate deals. That means if something is going to happen, it could happen soon.
