Insider Trading: Karlsson long-term extension must wait

It took months and months for Erik Karlsson to finally be dealt by the Ottawa Senators, and San Jose Sharks fans may have to be patient to see their new stud defenseman signed to a long-term extension.

Whether or not Karlsson wants to stay with the Sharks beyond the expiration of this season’s contract remains to be seen, but during Wednesday’s edition of TSN’s Insider Trading, Pierre LeBrun detailed another issue getting in the way.

“A lot of people were waiting for the shoe to drop soon on that, thinking there’s no way San Jose makes this deal without having him signed soon,” said LeBrun. “Well, don’t wait in the short term for that because the understanding of the situation as per the CBA is that Erik Karlsson cannot sign an eight-year extension with the San Jose Sharks until after the February 25 trade deadline.

“It’s a little-known rule in the CBA, to the point that Bill Daly, the NHL Deputy Commissioner, actually sent out a memo this summer - didn’t have Karlsson’s name in it - but had a memo explaining to all 31 teams ‘Remember this rule,’ that because he was still on the Ottawa roster after the last trade deadline, you have to wait until the next trade deadline to be able to sign an eight-year deal with your new team.

“So San Jose has to wait because you assume that if Erik Karlsson does want to re-sign in San Jose, and we’re not saying for sure that he does, that he would want the eight-year max.”

Karlsson is in the final season of his seven-year contract, and was traded to the Sharks last week for a package of players and draft picks.

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