Trading Salary Cap Space
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01-08-2013, 07:01 PM
Join Date: Aug 2005
Trading Salary Cap Space
Hey, I posted this in the CBA thread, but I think this is just such an interesting clause in the new CBA that opens up all kinds of prospective trade deals for the Pens:
RETAINING SALARY IN TRADES
This was Brian Burke’s baby, an idea he pushed for years at GM meetings. Under the old CBA, teams could not absorb any part of a salary from a player they were trading -- unlike baseball for example.
But in this new agreement, teams will be able to do that.
Here are the main parameters of the rule: A club cannot absorb more than 50 percent of the players’ annual cap hit/salary in any trade. Any NHL club can only have up to three contracts on their payroll in which the contract was traded away under the retaining salary proviso. Also, only up to 15 percent of your upper limit cap amount can be used up by the money you have retained in trades.
For example, let’s say the Maple Leafs want to trade little-used blueliner Mike Komisarek and his $4.5-million cap hit ($3.5 million salary this year) to the New York Islanders (hypothetically). The Leafs could retain half the cap hit -- $2.25 million -- and half the salary -- $1.75 million -- in order to facilitate the deal. The Islanders would pay him the other half. This should facilitate more trades around the league, no question.
I wouldn't want to touch J-Bo and his 6.6M cap hit this year and next with a 20 foot pole. But, Calgary has an owner with deep pockets, and that team will be rebuilding at some point soon. So, here's the question: What is J-Bo worth to the Pens for this year and next IF Calgary ate half the cap (and payroll) hit?
Similar question for Malone: He's got a 4.5M hit for the next three years. Definitely not worth it. But, what's he worth if TB ate a third of the cap and payroll hit (less likely that they do, even though the payroll hit won't be too bad)?
Imagine the market Columbus could've ginned up for Nash if they'd have been willing to eat some cap/payroll.
Look at it the other way. Pens decide to move Martin after this year. Yeah, they can get something, even at his 5M hit. But, what's the market for Martin like at a 3.75M hit. Is the extra return worth eating 1.25M of the cap hit?
You add this factor to the likely later deadline, and IMO this will be the most exciting trade market to follow in years.
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