In an attempt to replace Kelly general manager Baz Bastien acquired former Flyer enforcer Dave Schultz early in the season, but the price was high: Syl Apps Jr., one of the team's all-time leading scorers.
Frustrated with the performance of talented winger Pierre Larouche, Bastien dealt the 22-year-old to the Montreal Canadiens for veteran Pete Mahovlich and prospect Peter Lee on November 29, 1977.
Larouche would go on to win two Stanley Cup championships with the Canadiens, while Mahovlich was traded to the Red Wings less than two years later.
Lee would fail to live up to his promise, scoring an average of only 0.57 points per game over the course of six seasons with the Penguins.
The Penguins were involved in the following transactions during the 1977–78 season: Ron Schock Brian Spencer rights to Don Awrey Bob Paradise 1979 1st round pick (Tom McCarthy) Hartland Monahan Syl Apps Jr.Hartland Monahan Gene CarrDave Schultz1978 4th round pick (Shane Pearsall) Pierre Larouchefuture considerations (rights to Peter Marsh) Peter LeePete Mahovlich Dennis Owchar Tom Edur Dave Burrows1978 6th round pick (Mel Hewitt) Randy CarlyleGeorge Ferguson The 1977 NHL amateur draft was held in Montreal.