When the Pittsburgh Penguins traded for San Jose Sharks defenseman Erik Karlsson in 2023, many thought he was the missing piece for the stalled Penguins’ offense. Unfortunately, if you are a Penguins fan, this has not been the case. In the two years since acquiring Karlsson, the Penguins have yet to make the playoffs and are, in all likelihood, entering a rebuild. There has been no shortage of rumors regarding a potential deal for Karlsson, ranging from the Toronto Maple Leafs to the Vegas Golden Knights. Are some of the rumored destinations realistic options? Would the Penguins benefit from trading the star defender to a particular organization? This article will examine three trade destinations and the potential compensation from each franchise.
Dallas Stars
Several people theorized about Karlsson being shipped to the Lone Star State, including Sportsnet’s Elliotte Friedman at the trade deadline. Obviously, that did not materialize, but the Dallas Stars are still an intriguing option for the Penguins. Can a trade between the Penguins and Stars work? Yes, but it will require some major roster surgery from the Stars. Dallas has only $1 million in available cap space as of now, even after dumping defenseman Matt Dumba’s $3.75 million contract in a trade with the Penguins that netted Pittsburgh a 2028 second-round pick as well. Considering that the Penguins are paying Karlsson $10 million a season, this might be hard, but there is a way.
Related: Maple Leafs Should avoid Trading for Erik Karlsson
The Stars have another bad contract in defender Ilya Lyubushkin, who is making $3.25 million for the next two seasons. In a hypothetical trade for Karlsson, the Penguins would have to take on this contract. Additionally, the Penguins would have to retain 50% of Karlsson’s cap hit, or $5 million per season. Then, Karlsson would cost the Stars $5 million per season. If they also included a player like Mavrik Bourque, the trade would work within the cap. Is this all the Penguins would ask for? Probably not. If they need to retain a significant amount of money, they would likely also demand Dallas’ 2027 first-round pick.
Would it make sense for Dallas to give up Lyubushkin, Bourque, and a 2027 first for Karlsson? Absolutely! The Stars desperately lacked offensive firepower from the blueline during the 2025 playoffs. Their defensemen accumulated 29 points, 14 of which came from Thomas Harley. In a loaded Western Conference, the Stars lack a legitimate right-shot defender, especially one with the offensive capabilities of Karlsson. For the Penguins, they would get the American Hockey League’s (AHL) leading scorer in Bourque and a 2027 first-round pick; they would take this trade.
Vegas Golden Knights
I can already feel Vegas Golden Knights detractors sharpening their pitchforks, ready to riot over this opinion, but hear me out; it makes sense. It should become commonplace to mention Vegas whenever there is a star who might be traded, and with good reason. The Knights are hyper-aggressive, borderline cutthroat in how they run the team, but they win, and it’s because they are not afraid to take chances. For Vegas, star defender Alex Pietrangelo is out for the 2025-26 season, and there are serious doubts he will play again.
The Knights are currently $7.63 million over the cap, but this does not include Pietrangelo’s $8.8 million a season. In a hypothetical trade for Karlsson (with some retention from the Penguins), the Knights would likely offload Pietrangelo, a bit more salary, a 2027 first, and prospect Trevor Connelly, or a similar prospect. Karlsson would immediately replace Pietrangelo, and he would get to play next to either Noah Hanifin or Brayden McNabb, both of whom are quality left-handed defenders.
Detroit Red Wings
Of the three teams I’m discussing in this article, the Detroit Red Wings make the most sense because not only do they have substantial cap space, but they also have a glaring need at defense. Outside of Moritz Seider, the Red Wings lack talent and depth on the blueline. Karlsson would significantly help their top four while they await the arrival of Swedish stud defender Axel Sandin Pellikka. What would the package be? The Red Wings have a very bad contract with Justin Holl at $3.4 million. By absorbing Holl’s contract, the Penguins would likely fetch Detroit’s 2026 first-round pick and a prospect such as Shai Buium or Anton Johansson, especially if they are willing to retain $2 or $3 million of Karlsson’s cap hit. With the suggested retention, Detroit would still have around $7 million in cap space to make moves at the trade deadline to help them end their playoff drought.
It is obvious the Penguins need to trade Erik Karlsson. While his defensive abilities, or lack thereof, are well documented, he is still a potent offensive force, and it is not often that a man of his talents becomes available. Therefore, the Penguins can get a decent return for him.
