mouser
Business of Hockey
The Islanders signed Ladd on a bonus heavy contract. Basically he gets a large chunk of his money on July 1, then 1M during the season for the bulk of the deal. In the final year he gets a 3M bonus(July 1) + 1M . If the Islanders traded him on July 2 that last year, how would the caphit be distributed that season? Would the team picking him up get dinged the entire caphit since it's viewed he played the entire season there or would the Islanders get dinged 75% of the caphit because they paid 75% of his salary that year?
Fractional cap hits are based on the # of days on the regular season roster. So to answer your hypothetical question in this case the Islanders would get 0% of the cap hit, and the team Ladd was traded to would get 100%.