The Pittsburgh Penguins are trying to keep hold of defenseman Kris Letang. The team knows he is game changer, but the limited cap space is making things extremely difficult to get a contract together. According to multiple reports, Letang has denied the Penguins offer of an eight-year, $56 million contract proposal.

Both TSN and ESPN report that general manager Ray Shero presented Letang and his agent with the proposal that would carry an average salary of $7 million per season. Letang is seeking a contact that would offer that was around $8 million. The Penguins will be maxed out with anything over $7.25 million as it was reported they really cannot afford anything over $6 million. The two sides are still hoping to get a deal done and keep Letang in Pittsburgh.

The issue is that Shero has big money in both Evgeni Malkin and Sidney Crosby that offer the Penguins little flexibility to work with Letang. Shero knows what he is doing when it comes to negotiating contracts. He will likely try to entice Letang with an offer in exchange for the defenseman forgoing a full no-movement clause in his deal. The salary cap is going to rise in the coming years and if Letang is signed to a $7 million deal with the ability to dictate where he goes could be problematic for the team.

Pittsburgh certainly has less expensive options they could turn to. The Penguins have stockpiled on young defensive players in the NHL Draft over recent seasons, proving that the future of the team could have talent. Players like Derrick Pouliot and Simon Despres could take on more responsibility and cost a lot less.

There are plenty of theories to determine how the Penguins will handle this situation. The defenseman could fall into a Jordan Staal situation. Shero traded him last year at the draft because the two could not agree to a contract. If a deal is not reached, Letang will request a trade. It is reported that he is interested in the Toronto Maple Leafs, but his agent confirmed they have not talked to any other teams.

Pittsburgh will do all that they can to keep Letang and he will return the favor. The Penguins are in contention every year for the Stanley Cup, making them an excellent destination for any player. At this point, Letang has no movement protection in his current contract, allowing Shero to dictate his future.