Erik Karlsson Trade Rumors Percolate Amid Free Agent Frenzy

Now that the beginning of free agency has come and gone, the San Jose Sharks could look once again to trading Erik Karlsson.

It's been two weeks since reports emerged indicating that the San Jose Sharks were working with Erik Karlsson's representatives to find a suitable trade. The Toronto Maple Leafs, Seattle Kraken and Carolina Hurricanes were said to be interested in the 33-year-old defenseman leading up to the NHL draft last week.

The draft passed with Karlsson still a member of the Sharks. As the start of free agency approached on Saturday, The Athletic's Pierre LeBrun reported the trade discussions were quieting down. He believed the potential suitors were taking time to consider their next move after learning what type of return the Sharks sought for the 2022-23 Norris Trophy winner.

Karlsson's contract also remains an obstacle. While he's open to waiving his no-movement clause for the right club, his $11.5-million average annual value is very difficult for the interested parties to absorb with the salary cap flattened for 2023-24. Sharks GM Mike Grier is willing to retain part of it but won't go as high as 50 percent.

During the opening day of free agency, LeBrun reported the Pittsburgh Penguins also held discussions with the Sharks about Karlsson. Kyle Dubas, the Penguins' president of hockey operations, acknowledged the talks had taken place. However, he declined to say if a trade for the puck-moving blueliner was still possible following his recent free-agent signings.

With the Penguins now bumping against the $83.5-million salary cap and the Leafs sitting over $8 million above it, the likelihood of either club acquiring Karlsson appears remote. The Hurricanes and Kraken still have cap room, but whether they can put together a suitable offer remains to be seen.