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Question About Salary and Cap Hit Retention

16 janv. 2021 à 18 h 35
#1
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Let's suppose a player's contract calls for a $2 million signing bonus (playable at the start of the season) and $2 million in further compensation through the balance of the season, for a total compensation of $4 million and thus a corresponding cap hit.

The player is traded from Team A to Team T "with $1 million retained."

Can the teams agree that the $1 million is applied to the signing bonus, and thus Team A owes the player and Team T nothing more?
19 janv. 2021 à 9 h 4
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Quoting: OldNYIfan
Let's suppose a player's contract calls for a $2 million signing bonus (playable at the start of the season) and $2 million in further compensation through the balance of the season, for a total compensation of $4 million and thus a corresponding cap hit.

The player is traded from Team A to Team T "with $1 million retained."

Can the teams agree that the $1 million is applied to the signing bonus, and thus Team A owes the player and Team T nothing more?


No. Once signing bonus is paid that money is out the door. The player isnt being paid by the team retaining. its just a money exchange. "ill keep 1m of his money owed and a 1m cap hit and you take the player and the rest of his money." You cant look back to prior payments when dealing with retention. thats why timing of trades is critical sometimes.
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19 janv. 2021 à 10 h 43
#3
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Quoting: hanson493
No. Once signing bonus is paid that money is out the door. The player isnt being paid by the team retaining. its just a money exchange. "ill keep 1m of his money owed and a 1m cap hit and you take the player and the rest of his money." You cant look back to prior payments when dealing with retention. thats why timing of trades is critical sometimes.


It seems to me that your third and fourth sentences are directly contradictory.
19 janv. 2021 à 12 h 25
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Quoting: OldNYIfan
It seems to me that your third and fourth sentences are directly contradictory.


i guess if you think about it technically they are still paying the player. but its more of a books thing. we will keep 1m per year of his remaining amount due (for duration of contract) while you take the rest of his salary. I dont know if for example with david backes retention last year if the bruins could allocate the retention amount to certain payoff dates or if its one lump payment, or if its a payment plan similar to the normal salary payouts. but you cant allocate backwards if that makes sense. any retention has to be on remaining money owed.
 
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