Other: Trading Salary Question

[uncleben85]

When a team retains part of a players contract in a trade now, do they pay that salary but lose 100% of the cap hit
or do they pay, say 10% salary AND retain 10% cap hit?


Sorry if this is the wrong place. I'm just hoping for a quick answer and it can be locked if need be.

[MW6]

They retain the hit also!

[uncleben85]

Originally Posted by MW6

They retain the hit also!

Thank you!!!

[Nuckles37]

If you retain 10% of the salary, you also retain 10% of the cap hit (and vice versa).
And you can only retain 50% of the cap hit/salary at most.

[RangerBoy]

The same % has to be maintained for entire length on the contract. It can't be 50% in 13-14 and 25% in 14-15. A team can retain 15% of the upper limit. 3 contracts max.

[Abbotsford Heat]

I have another question, since one has been asked already seems this might be a good place since it is somewhat related. I will use a player I know better as an example.

Let's say the Flames do indeed trade Mike Cammalleri and they retain $2 million of his cap hit. But the team that acquires Cammalleri decides to use a compliance buyout on him. Do the Flames still retain that cap hit? or is their portion bought out too?

[RangerBoy]

Originally Posted by Abbotsford Heat

I have another question, since one has been asked already seems this might be a good place since it is somewhat related. I will use a player I know better as an example.

Let's say the Flames do indeed trade Mike Cammalleri and they retain $2 million of his cap hit. But the team that acquires Cammalleri decides to use a compliance buyout on him. Do the Flames still retain that cap hit? or is their portion bought out too?

The MOU states the compliance/amnesty buyouts are for existing contracts. The NBA used similiar terms. Contracts already on the roster. Amnesty buyouts are for players on the roster when the CBA/MOU was struck. A team trading for a player to amnesty the player isn't amnesty. Teams can only amnesty the players on their roster when the MOU was signed. Amnesty is designed to help teams become compliant with the cap being set at $64.3M and changes in the system.

[RangerBoy]

The NBA allows teams to use 1 amnesty buyout which can be used at any year in the CBA for an existing contract. It counts against the players share but not against the cap or luxury tax. The NHL has the same system but they put a time table on it. The PA requested 2 after the NHL offered 1.

[Duckstudd269]

I have another question about this:

Can a team trade a player and retain different amounts of salary and cap space? For example:

Team A trades a player making 10 million a year to team B.

Is it possible for team A to retain 4 million a year in cap space but only 3 million a year in actual salary? Basically can salary and cap hit differ?

This would be critical if the caps ever decided to move OVY IMO.

[Nuckles37]

Originally Posted by Duckstudd269

I have another question about this:

Can a team trade a player and retain different amounts of salary and cap space? For example:

Team A trades a player making 10 million a year to team B.

Is it possible for team A to retain 4 million a year in cap space but only 3 million a year in actual salary? Basically can salary and cap hit differ?

This would be critical if the caps ever decided to move OVY IMO.

The percentage of salary and cap hit must be the same.

So let's say a player is in the last year of his contract, and has a cap hit of $4 mil, but he has a salary of $3 mil for the last year of his contract.
If a team retains 10% of the contract, they keep 400k of the cap hit and 300k of the salary.

But if his cap hit is $4 mil and salary is also $4 mil, and the team retains 10% of the contract, then they keep 400k of both.

[Duckstudd269]

Ahh ok. Basically the teams can't negotiate each one separately? Thanks for the clarification.

[uncleben85]

How many times can this be done with one player? Say Pittsburgh trades Crosby to Philly and keeps $2M of his $9.7M cap hit, so 23%.
And then Philly wants to trade him to the Rangers. Can Philly now hold back some of his salary as well? (I assume they can only retain up to 50% of their 77% portion of the contract.) If yes, can NYR does this; does it ever stop?

[Nuckles37]

Originally Posted by uncleben85

How many times can this be done with one player? Say Pittsburgh trades Crosby to Philly and keeps $2M of his $9.7M cap hit, so 23%.
And then Philly wants to trade him to the Rangers. Can Philly now hold back some of his salary as well? (I assume they can only retain up to 50% of their 77% portion of the contract.) If yes, can NYR does this; does it ever stop?

http://capgeek.com/faq/new-cba-details.php

RETAINED SALARY TRANSACTIONS

Teams can retain a percentage of a contract’s remaining cap hit, salary and bonuses in trades. The following stipulations apply:

- No more than 50 per cent of the salary/cap hit can be retained
- Salary/cap hit cannot be retained on more than three contracts in one season
- The aggregate cap hits retained cannot exceed 15 per cent of the upper limit
- A contract can be traded only twice where salary/cap hit is retained

[uncleben85]

Originally Posted by Nuckles37

http://capgeek.com/faq/new-cba-details.php

So is does that mean one two transactions involving that contract can involve salary retention, or a contract subject to retention can only be traded twice (once it has been traded twice the team with that contract CANNOT move that contract, period. they have to let it expire).

I can only assume the former. The latter would be... interesting, to say the least.