Report: Fire Sale Imminent For Pittsburgh Penguins, Big Name Vets on the Block

The Penguins are open to trade anyone except Crosby, Malkin, Rust, Tomasino, and Pickering (Photo by Jared C. Tilton/Getty Images)

Are the Pittsburgh Penguins about to have a fire sale?

Waiving goalie Tristan Jarry and the three years ($5.38M AAV) left on his contract this past week was just the beginning of what the Penguins hope can be a re-tooling of their roster. The goal still remains to contend next season and also continue to build for the future.

An NHL source close to the situation has confirmed to RG that everyone on the current roster - except captain Sidney Crosby, longtime alternate captain Evgeni Malkin, veteran forward Bryan Rust, forward Philip Tomasino, and defenseman Owen Pickering - is available for the right price before the March 7 NHL Trade Deadline.

“Sid, Malkin, Rust, and the two kids, Tomasino and Pickering, they’re off limits for now, but everything else can be had for the right price,” the source said.

When asked to clarify that longtime Penguins defenseman Kris Letang wasn’t on that list, the source replied:

“I don’t know right now.”

The three-time Stanley Cup champions and 37-year-old defenseman has three years left on a six-year, $36.6 million contract with a $6.1M AAV and has a full no-movement clause.

Another notable name not mentioned in the reported untouchables above is veteran defenseman and two-time Norris Trophy winner Erik Karlsson. Karlsson has two years left with a $10M AAV and a full no-movement clause. The San Jose Sharks are picking up 13.04 percent of that cap hit already, but Pittsburgh is open to retaining more to get a deal done.

“That’s someone they want and need to move,” the source said. “I think they retain salary for sure, and you know what? He can help the right team still. Maybe with the cap going up, you never know.”

The current NHL salary cap is $88 million, but it is expected to rise to $93 million for the 2025-26 season. However, as RG reported last week, effective January 30, 2025, the escrow withholding rate will drop from 6% to 0% for the remainder of the season.

According to RG's source, not only is the NHL canceling escrow, but because projected profits are expected to be much higher than previously predicted, the league also agreed to pay the players anywhere from 2-6% of their extra earnings.

This means the cap will likely climb higher, but an agreement between the NHL and NHLPA will be required.

“Exactly! Those contracts you think are unmovable aren’t all that way anymore,” the source said.

Moving Contracts With Term

According to the source, Penguins general manager Kyle Dubas is ready to move contracts with term left and take the right ones back.

“You’re going to see him move and take back term,” the source said. “He still wants to try and win for Sid and Geno, but he thinks he can build for the future, too.”

That would mean not just well-known expiring contracts like that of defensemen Matt Grzelcyk ($2.75M, UFA), Marcus Pettersson ($4.03M, UFA), and forwards Anthony Beauvillier ($1.25M UFA), Drew O’Connor ($925K UFA), Cody Glass ($2.5M AAV, RFA) and Matt Nieto ($900K), and P.O. Joseph ($950K, RFA) are on the NHL trade market

But you can also add attractive contracts like those of forwards Rickard Rakell (three years, $5M AAV, eight-team NTC), Michael Bunting (one year, $4.5M AAV), Kevin Hayes (one year, $3.5M AAV, modified NTC), Noel Acciari (one year, $2M AAV, eight-team NTC) as well.

The Penguins currently have $5.2 million in prorated salary cap space. According to the source, the approach is to use that, their remaining retention slot, the assets listed above and draft picks to revamp the roster and build for the future at the NHL trade deadline.