Penguins Blog: How Dubas Will Use Remaining Cap Space (Probably)

For the first time in the Sidney Crosby era, salary cap space will work to the Pittsburgh Penguins’ advantage. Rather than the annual games of limbo to shimmy just under the hard cap or preplanning sacrifices to achieve compliance, the Penguins have several million in cap space.

Remarkably, the number could grow at the beginning of the season.

According to Puckpedia.com, the Penguins have just over $2.7 million in salary cap space, and the number will inch higher as the team likely places forward Matt Nieto on the long-term injured list or demotes a forward to the Wilkes-Barre/Scranton Penguins.

In total, Penguins president of hockey operations/GM Kyle Dubas will have about $3.5 million to play with, but the question is–How will he use it?

Also, the caveat. Last week, sources told Pittsburgh Hockey Now that Dubas put contract talks on hold with Marcus Pettersson until after the Sidney Crosby contract was resolved. Presumably, the Crosby situation would also hinder additional free-agent talks unless only a one-year contract is proposed.

Also, thanks to X-follower Matt Meager for the question.

Does Dubas have a trade / UFA target in mind for 1st LW?

Does he hold onto that cap space in case an opportunity to grab a player arises mid-season?

— Matt Meagher (@Flux_cc) August 8, 2024

We’ll punt Matt’s first question because we think the answer is no, and there certainly isn’t a top-line left wing still available via free agency. So, how to spend roughly $3.5 million?

Dubas could also put the cash in the piggy bank to see if the Penguins need assets at the NHL trade deadline and make a move, right?

No, don’t expect Dubas to sign a UFA for $3.4 million, and don’t expect a big trade (though we continue to believe a Patrik Laine trade would make sense). Dubas’s refusal to substantively add to the NHL roster this summer makes those possibilities a lot less likely. Teams trading away talent at the NHL trade deadline want future assets, putting them at odds with Dubas, who also wants future assets.

The Penguins just aren’t in that mode anymore. It’s not win-now, it’s win if you can.

1. Penguins Trade Holdback

Expect Dubas to sell it.

There are a few different ways to accomplish selling the salary cap space, but recall Dubas’s comments at the NHL Combine in May. He wants to acquire draft picks “as urgently as possible.”

Instead, Dubas will be able to accept players on bad contracts, such as he did in the Penguins trade for Kevin Hayes AND a second-round pick. The latter asset in the acquisition was the reason for the former.

Also, recall how Montreal fattened its future asset coffers in the Erik Karlsson trade by accepting Jeff Petry from the Penguins, then eating part of his salary in a follow-up trade to Detroit, and taking on Penguins goalie Casey DeSmith, later flipping him to Vancouver.

Montreal swallowed half of Petry’s $6.25 million salary in the trade to Detroit but received a conditional fourth-rounder.

Montreal also received Tanner Pearson and a third-round pick for DeSmith. That deal was also a use of cap space as Pearson scored just five goals and registered eight points for Montreal.

Montreal general manager Kent Hughes gambled and didn’t hit the jackpot quite like he hoped with Petry and settled for less than the asking price, but Montreal’s total for accepting Petry and DeSmith was a 2025 second, a third, a conditional fourth, and Tanner Pearson. It cost Montreal about $6.3 million in salary.

It was quite a bit of wheeling and dealing, but Dubas’s work to acquire Karlsson was no less complicated.

Based on the Hayes and Petry deals, it seems the current market price for $3.5 million in salary cap space is indeed a second-round pick. Of course, that doesn’t account for desperation at the NHL trade deadline when a GM can smell a Stanley Cup and needs that one player to put his team over the top.

Perhaps the market price will rise in a heated situation.