Kris Letang contract extension: Penguins won’t guarantee against trade

The extension reportedly will contain a 15-team limited no-trade clause and carries an annual average value of $7.25 million against the salary cap. Letang still has one-year remaining on a four-year, $14 million contract, which carries an annual average value of $3.5 million.

Manager Ray Shero and Letang’s agent Kent Hughes still have components of the contract to workout. The deal has yet to be formally agreed to, according to Pierre LeBrun of ESPN. However, it’s believed the issues are minor in nature and that the largest hurdles of the negotiation have been handled.

The insider tandem of Darren Dreger of TSN and Pierre LeBrun of ESPN and TSN both indicated that manager Ray Shero presented Letang and his agent Kent Hughes with the proposal. Letang rejected the offer, which would have carried an average annual value of $7 million per season. According to previous reports, Letang was seeking a contract offer that would pay him $7 million per season over a term of five-to-eight years, with an eight-year maximum contract being his ideal figure.

Letang’s representation reportedly presented a counter-offer, which featured a figure “south of $8 million,” according to LeBrun. Dreger stated during a radio interview with TSN 690 on Thursday morning that the Penguins would likely max out around an average annual value of $7.25 million.