Sharks Re-Sign Erik Karlsson, Still +1600 to Win 2020 Stanley Cup

• Erik Karlsson agreed to an eight-year, $92 million contract extension with the San Jose Sharks
• The Sharks still need to sign nine players, including RFAs Timo Meier and Kevin Labanc, and team captain Joe Pavelski, but have just $16. 3 million in cap space
• Are the battle-hardened Sharks poised to return as Stanley Cup contenders next season?

The San Jose Sharks made the biggest splash so far of this offseason on Monday, signing defenseman Erik Karlsson to an eight-year contract extension that carries an average annual salary-cap hit of $11.5 million.

A two-time Norris Trophy winner, Karlsson is considered among the best rearguards of the past decade. But with the 29-year-old continuing to battle persistent injuries and San Jose facing a potential salary-cap crunch, the move has failed to boost the Sharks’ odds to win the 2020 Stanley Cup, where they remain stalled at +1600.

Odds to Win 2020 Stanley Cup

*Odds taken on 06/17/19

Past Two Seasons Marred by Injury, Controversy

Karlsson arrived in San Jose late last summer following a disastrous 2017-18 campaign in Ottawa. Hobbled by an ankle injury that required extensive surgery to remove part of his ankle bone and replace it with an artificial tendon, Karlsson saw his production dip on a Senators squad mired in controversy.

Following his second practice day with the team, #Sens captain Erik Karlsson provides an update on his recovery from ankle surgery. pic.twitter.com/86BJIRFn6W

— Ottawa Senators (@Senators) September 27, 2017

An array of injuries also limited him to just 53 games and 45 points in his Sharks debut, and carried over into the postseason, limiting his effectiveness and ultimately forcing Karlsson to watch from the press box as San Jose bowed out to the St. Louis Blues in Game 6 of the Western Conference Final.

Sharks Now Facing Salary Cap Crunch

In addition to his long-term durability, Karlsson’s signing has already forced the Sharks to make moves to free up cap space. Just one day after announcing Karlsson’s extension, the club dealt veteran d-man Justin Braun to the Philadelphia Flyers for a pair of draft picks, freeing up $3.5 million in cap space.

Trading D Justin Braun to the Flyers has increased San Jose #Sharks projected cap space by $3.8M to $16.3M [This assumes the upper limit is $83M] with a roster of 15 (7F 6D 2G)https://t.co/dEGsEG2xOO pic.twitter.com/hpXBnwOXSh

— CapFriendly (@CapFriendly) June 18, 2019

As NHL Draft Day approaches, the Sharks now have an estimated $16.3 million in cap space available to sign nine players. With team captain Joe Pavelski set to become an unrestricted free agent on July 1, and soon-to-be RFAs Kevin Labanc and Timo Meier in line for big raises, Sharks general manager Doug Wilson faces some hard choices this summer.

Window of Opportunity Closing

While the Sharks maintain a solid core, led up front by clutch playoff performer Logan Couture and six-time All-Star defenseman Brent Burns, the window of opportunity with this current group is running out fast.

In addition to keeping pace with the Calgary Flames and Vegas Golden Knights in the Pacific Division, the Sharks face growing threats from several teams on the rise in the Western Conference.

In addition to keeping pace with the Calgary Flames and Vegas Golden Knights in the Pacific Division, the Sharks face growing threats from several teams on the rise in the Western Conference, including the Colorado Avalanche and Arizona Coyotes, not to mention the Stanley Cup champion St. Louis Blues.

The Colorado Avalanche might be out of the playoffs, but the building blocks are there for a successful future in Denver.https://t.co/Hz4gbuFcqF

— The Hockey News (@TheHockeyNews) May 10, 2019

However, this current Sharks squad is a battle-hardened group that features a number of players from the 2015-16 Stanley Cup Final. While a very real possibility exists that Karlsson’s new contract will come back to haunt the team in three to five years time, Wilson’s ability to retain the services of Pavelski, Meier, and Labanc without sacrificing too many assets should enable the Sharks to remain a Stanley Cup contender for at least one more season.