Value of: Retaining Salary Question

[dream43]

I was just wondering if teams would have to pay anything if a player they retained salary on when traded got bought out, would the team that traded him owe any money?

ex: Team A has player signed for 5.5 for 3 yrs, Team A than retains 2 million and trades him to Team B a 3.5 for 3 yrs. In the summer Team B chooses to buy player out. Would Team A owe anybody anything?

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[Jumptheshark]

if I am not mistaken--could be horribly wrong

team that is doing the buying out is only buying out their portion of the contract and the team that retained would still be on line for the full amount of the contract

 

[Canada4Gold]

if I am not mistaken--could be horribly wrong

team that is doing the buying out is only buying out their portion of the contract and the team that retained would still be on line for the full amount of the contract

I think that's incorrect actually, CBA page 274

http://www.nhl.com/nhl/en/v3/ext/CBA2012/NHL_NHLPA_2013_CBA.pdf

In the event that a Retained Salary SPC is "bought out" or
terminated, the resulting obligations (both Averaged Amount and
Salary and Bonus) shall be divided as between the Clubs party to
the Retained Salary Transaction(s) for that SPC on the same
percentage basis as originally agreed upon in the Retained Salary
Transaction.

That sounds like if the acquiring teams buys the contract out it changes the cap and salary obligations of the trading team accordingly

 

[dream43]

ah thank you just been curious about this for a while

 

[bryndogcanucks]

I think that's incorrect actually, CBA page 274

http://www.nhl.com/nhl/en/v3/ext/CBA2012/NHL_NHLPA_2013_CBA.pdf



That sounds like if the acquiring teams buys the contract out it changes the cap and salary obligations of the trading team accordingly

It doesn't change the cap and salary obligations of the trading team, it continues them on the same basis as the original transaction.
For example, it team A trades a player to team B with 10% cap and salary retention, and then subsequently team B buys out the player, team A will be responsible for 10% of the resulting buyout salary and cap obligations.

 

[Canada4Gold]

It doesn't change the cap and salary obligations of the trading team, it continues them on the same basis as the original transaction.
For example, it team A trades a player to team B with 10% cap and salary retention, and then subsequently team B buys out the player, team A will be responsible for 10% of the resulting buyout salary and cap obligations.

That's literally what I meant in that that post you just quoted.

Their obligations initially would have been 10% of the AAV of the contract, signing bonuses and salary, and now it becomes 10% of money paid out and cap hits, which have now changed due to the buyout. That's what "changes the cap and salary obligations of the trading team accordingly" means, their 10% obligation for example might be 600k for 2 years now becomes say 200k for 4 years.

 

[Djp]

IF team X retains 25% they are responsibly for 25% of the cap hit against their cap, 25% of the actual paid salary left on the contract and they would be responsibly for 25% of a player buy out in terms of cash and salary cap obligations due to the buy out.

IF the contract was pre CBA then trading team would also be responsible for any recapture penalty if the contract was front loaded.

If Montreal buyout Weber when he hits those $1M years Nashville will have recapture to deal with against their cap. right now they paid him abiut $25M more than what the cap hits were so they need to count that $25 M agains ttheir cap.