Why would San Jose give up picks here to ARZ?

To retain half of the $5 mil to Karlsson.

San Jose isn’t paying a pick to Arizona, that would be the acquiring team Dallas that should do that

They've been trying to move Karlsson for 2 years and the only reason they can't is because they refuse to retain. I'm not saying a 1st here, but I don't think Dallas would be the one paying to manage SJ's books. Dallas will only care about the overall retention, and if SJ wants to go another route to get that number down on their books, that's the only way to do it. Either way, I'm not talking a 1st here.

Word of advice, if you're responding to someone on this site, hit the "QUOTE" button on the bottom right of their comment. They won't get a notification that you responded, otherwise.

Cold day in hell that Arizona retains $20,000,000 Erik Karlsson, When they're eating that much on OEL for the next 8 years on his buyout. And losing a retention spot on top of it.

Arizona isn't retaining 20 on Karlsson, they'd be retaining 10. And right now they're so below the cap they honestly have to pick up some awful contracts just to hit the floor.