Media rumors linked the Edmonton Oilers to the San Jose Sharks and Erik Karlsson this past weekend. How can they maneuver within the salary cap?

Last December, TSN's Darren Dreger reported some within the Edmonton Oilers front office were interested in San Jose Sharks Erik Karlsson. Amid the recent chatter over the impending trade of Arizona Coyotes defenseman Jakob Chychrun, TSN's Chris Johnston tweeted that the Oilers were revisiting their interest in the 32-year-old Karlsson.

Johnston indicated there were “considerable financial hurdles” to overcome. Karlsson has four years remaining on his contract, with an average annual value of $11.5 million and a full no-movement clause.

Oilers GM Ken Holland last week said his cap-strapped team was “dollar-in, dollar-out” regarding potential trades. He stressed that his club would have to move out some players in order to add someone with big salary-cap numbers.

Sportsnet's Elliotte Friedman believes the Sharks would have to retain between $4.5 million and $5 million of Karlsson's annual cap hit to make him affordable for the Oilers. He said that nobody knows if the Sharks are willing to do that. Karlsson would also have to agree to go to Edmonton.

CapFriendly indicates the Sharks retained $2.72 million of Brent Burns' annual cap hit through 2024-25 when they traded him last summer to the Carolina Hurricanes. Absorbing up to $5 million of Karlsson's AAV would mean carrying over $7 million in dead cap space for the next two seasons, followed by $5 million annually for two more years.

Sharks GM Mike Grier will need a substantial return from the Oilers to justify retaining a big chunk of Karlsson's cap hit. Holland, meanwhile, would have to move out two players to free up sufficient cap room unless he can get a third club involved to broker the deal and spread the remainder of Karlsson's cap hit around.