After weeks of rumors regarding Jordan Staal's status with the Pittsburgh Penguins we now know where he fits into their long term plans.

The Penguins on Thursday announced they'd re-signed Staal to a four-year, $16 million contract extension, which commences next season.

According to the Pittsburgh Post-Gazette the new deal breaks down as $4 million per season against the cap, although he'll be paid $3.5 million per season in the first two seasons and $4.5 million in the latter two.

I've been asked if this is indicative of a potential "sign and trade" deal whereby the Penguins trade him later on this season, the thinking being he'd be more palatable to rival teams now that he's under contract for the next four seasons.

I don't believe that's the reason the Penguins re-signed him. As with almost all contract extensions, this was done to keep a key player (in this case, Staal) in the fold rather than make him a more attractive bargaining chip.

The reason for this question was Staal's name has been kicked around in trade rumors involving the Penguins for some time. Given the club's lack of quality scoring depth on their wings, particularly on Sidney Crosby's line, there's been some rumor chatter suggesting Staal, a center, could be dealt for a scoring winger.

Evidently that's not the intention of Penguins GM Ray Shero, who indicated weeks ago his plan was to retain Staal long-term.

Staal is a valuable asset for the Penguins, having proven to have strong two-way skills, and at only 20 his best seasons are still far ahead of him.

But as the blog "Empty Netters" observed, that signing comes with a price, specifically the hit to the Penguins cap space.

According to NHLnumbers.com, the Penguins will have (including Staal's new salary) less than $42 million committed to 13 players for next season.

If next season's cap remains close to this season's $56.7 million that might not leave enough to re-sign other roster players and still have enough space to pursue a scoring winger.  Should the cap possibly decline after next season, it could squeeze the Penguins even more.

The Penguins have obviously committed to retaining their best young players which is the right decision in the long run, but it could also add up to some short-term pain when it comes to bolstering other areas of their roster.