BREAKING: #Sens agree to terms with Erik Karlsson on a seven-year contract extension. Details to follow.— Ottawa Senators (@NHL_Sens) June 19, 2012
TSN's Bob McKenzie had tweeted earlier that Ottawa was close to a contract with Karlsson that carried a 5 to 7 year term with cap hit of $6M or more. Not Drew Doughty money ($7m/yr) but close.
For what it's worth, the Doughty contract one was a $49-million pact that carried over seven years.
More to come...
Update: 6:27 p.m.
Wow, that didn't take long on the Karlsson contract. 7 years, annual cap hit of $6.5M.— Bob McKenzie (@TSNBobMcKenzie) June 19, 2012
So there you have it, it's a seven year contract totalling $45.5 million - for an average annual value of $6.5 million.
Update: 6:55 p.m.
The Senators' website has released some comments from owner Eugene Melnyk:
“We are extremely pleased to announce that Erik Karlsson’s contract has been extended for seven more years," said Senators owner Eugene Melnyk. “Erik is the type of player and person that embodies an Ottawa Senator, and we are confident that on a personal basis, he will quickly become a role model for many of our young Sens fans and a great contributor to our community. We feel strongly that this long-term commitment will be great for both sides. As one of the cornerstones of our franchise, Erik will be a large part of the future success that Senators fans can look forward to.”
Update: 7:27 p.m.
Assuming that I'm interpreting Nick Kypreos' Twitter feed correctly, because Karlsson's contract has a minimal signing bonus and his annual salaries range from $4.5-$7.5 million, the finacial burden put on owner Eugene Melnyk, in the event of a work stoppage, is minimal.
Update: 7:49 p.m.
According to RDS' Renaud Lavoie, the first year of Erik Karlsson's contract has an actual salary of $4.0 million with a $1.0 million signing bonus. The last year of his contract is reportedly worth $7.5 million - which is the high end of the scale that Kypreos was referring to earlier.