Quote:
Originally Posted by BaseballCoach
The question has come up about a guy like Luongo being traded and not finishing his career. Then suppose Vancouver took on some of his salary an cap. How would the recapture work?
If things are logical, I believe the original team will get MORE of the recapture, as they should, since they are agreeing to take part of the cap hit for the acquiring team.
Take a contract that goes like this
1010107755111
Total dollars committed 57, cap hit 5.7
Say the guy plays for Team1 for 2 years, and Team2 for 5 years, and suppose that Team1 retained 20% of remaining salary and cap hit. Then, this is what I think SHOULD happen.
First let us look at what happens if there is no salary/cap retention in the trade.
Team1 gets a frozen cap recapture of $8.6M, because they paid $20M and had a cap hit of $11.4M, over two years.
For the first five years after the trade, Team 2 paid $34M and got hit with cap of $28.5M, so they have a cumulative recapture of $5.5M.
Now the player retires, three years early. Team1 will have a cap adjustment of $2.867M for each of three years, while Team2 will have a cap adjustment of $1.833M for each of three years.
Let us now add the 20% retention clause.
Team1 has now paid the following
101021.41.411 for a Total $26.8M
and has absorbed cap hits of
5.75.7.1.141.141.141.141.14 for a Total $17.1M
Team1 now has a cap recapture of $9.7, which is $1.1M more than they had in the first case, which is correct, since $1.1M is 20% of the $5.5M recapture that Team2 would have had.
Team2 has now paid the following
85.65.644 for a Total $27.2M
and has absorbed cap hits of
4.56 x 5 for a Total $22.8M
Team2 now has a cap recapture of $4.4M, which is $1.1M less than they had in the first case, which is correct, since $1.1M is 20% of the $5.5M recapture that Team2 would have had.
Does anyone know if this is how it would work under the actual terms of the CBA?

From what I took from the CBA Team 1 can agree to keep up to 50% of the cap