If Ottawa is willing to retain 50% AND add a sweetener, I'd be for involving a third team. The third team gets sweetener and retains another 25% of contract. We end up with Murray at 1.5625M, leaving enough money to sign a 1A. What I really like about this is it becomes high upside low risk.
Best case scenario: Murray regains form and becomes a very cheap 1A/1B for 2 years.
Worst case scenario: Murray is utter trash but only costs a few 100K to bury.
Hypothetical trade:
Ottawa: retains 50%, gets "future considerations"
Team C: retains 25%, gets Ottawa 4th, Kerfoot
Leafs: get Murray @ 1.6M, Ottawa 2nd.
Team C can move Kerfoot for at least a 2nd at TDL, giving them a nice return for retaining 1.6/yr for 2 years. (Kerfoot also basically neutralizes their real dollar investment)
Leafs get a cheap Murray plus an early 2nd that is right in Dubas' wheelhouse. They lose Kerfoot but have lots of cap room