REPORT: Oilers Want Sharks To Retain About 40% On Karlsson Trade?

Erik Karlsson trade rumors are heating up once again.

According to Chris Johnston, the San Jose Sharks and Edmonton Oilers “have re-engaged” on a potential Karlsson trade.

Word is the #SJSharks and #oilers have re-engaged on Erik Karlsson trade discussions. There are considerable financial hurdles on both ends, but it's at least the second time this season they've explored a potential fit.

— Chris Johnston (@reporterchris) February 11, 2023

In early December, there was some chatter that the Sharks and Oilers were talking about Karlsson, who was at the beginning of a renaissance campaign. The financial challenges of such a transaction – the 32-year-old defenseman has an $11.5 million cap hit each year until 2026-27 – seemed to stall that conversation.

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Karlsson, however, has kept it up, and his 17 goals and 70 points leads all NHL blueliners. That’s 14 points more than second-place Rasmus Dahlin.

So it looks like San Jose and Edmonton are talking again, even though the same financial obstacles remain.

“For this to work, he’s got to be about a $6.5 to 7 million dollar player for the Oilers,” Elliotte Friedman said on Sportsnet tonight. “Edmonton, if they’re going to do this, they need San Jose to eat 4.5 to 5 million dollars, in that range, for the next four seasons.”

Rumor is, the San Jose Sharks are already willing to retain 18 percent of Karlsson’s remaining deal.

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$4.5 to $5 million of retainment is 39.1 to 43.5 percent. Maximum retainment allowed is up to 50 percent.

“Nobody knows at this point in time if San Jose is going to be willing to do that,” Friedman acknowledged.

It is possible that the Sharks find a middle-man team to take on all or part of the retainment, but that’s going to cost something valuable. It’s not everyday that two teams retain on four years of the same contract.

The San Jose Sharks are currently retaining 34 percent of Brent Burns’s contract, $2.72 million cap hit, until 2024-25. Teams are allowed to retain on up to three contracts.

The Trade Deadline is Mar. 3. While there was some expectation that Karlsson wouldn’t move until the summer, it looks like that timeline could get moved up.

Of course, Karlsson has to sign off on any trade too. There are the aforementioned glaring financial obstacles, plus the two-time Norris Trophy has a complete No-Movement Clause in his contract.

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