Erik Karlsson traded to Pittsburgh Penguins in three-way deal with San Jose, Montreal
San Jose Sharks have traded star defenseman Erik Karlsson to the Pittsburgh Penguins. The deal involves nine players, three draft picks, and three different teams. The full details of the trade are as follows:
Pittsburgh receives: Erik Karlsson ($1.5 million retained), Rem Pitlick (from Montreal), Dillion Hamaliuk, and a 2026 third-round pick.
San Jose receives: Mike Hoffman (from Montreal), Mikael Granlund, Jan Rutta, and a 2024 first-round pick.
Montreal receives: Jeff Petry, Casey DeSmith, Nathan Legare, and a 2025 second-round pick.
Karlsson has four years left on his contract with a cap hit of $11.5 million, but the Penguins will only be on the hook for a $10 million AAV. Additionally, the Penguins have retained 25% of Jeff Petry’s contract, for a total of $1,562,500 for the next two years.
Sources say #sjsharks have traded D Erik Karlsson to Pittsburgh Penguins. Working on details.@DailyFaceoff
— Frank Seravalli (@frank_seravalli) August 6, 2023Karlsson, 33, had a career-best season in 2022-23, recording 25 goals and 101 points to lead all defensemen. Karlsson won the Norris Trophy as the league’s top blueliner, the third time he has done so after winning the award in 2012 and 2015.
It was his fifth season with the Sharks, a tenure that was filled with ups and downs as the Swedish defender struggled to remain healthy and at the top of his game. Prior to his time in San Jose, the Ottawa Senators drafted Karlsson 15th overall in 2008. He established himself as one of the best defensemen in the league, which included his first two Norris awards, while hovering around the 20-goal mark throughout much of his early career. Karlsson also served as captain for four seasons before his eventual trade to the Sharks in 2018.
The Penguins found themselves wanting to acquire Karlsson but without any cap room. Under the guidance of recently hired president and general manager Kyle Dubas, they have masterfully executed one of the biggest trades of the 2020s and came away with the reigning Norris Trophy winner and convinced other teams to take on their albatross contracts in the process.
As for the cap ramifications of the deal, the Canadiens took on $887,500 in cap, the Penguins ended up gaining $3,137,500 in cap space, and the Sharks took on $2,250,000 in salary.
The Sharks wanted to find a better home for Karlsson ever since his resurgent Norris-winning season in 2022-23. They were okay with a middling return as long as they were free of at least most of his massive contract. They emerged victorious on both fronts, only needing to retain $1.5 million on Karlsson and getting off the hook for $10 million for the next four years.