Asked Jan 3, 2023 by Damien

Traded Cap Hits & Proration

When a team makes a trade at the deadline, does the full cap hit of the player count against the new team’s cap or does their daily cap hit times the amount of days left count against the cap?
If a team is using LTIR, does it have an impact on the above?

Answer

Feb 24, 2023

If a team is not in LTIR (under the cap), then all cap hits are pro-rated. When a player is traded, the new team takes on their cap hit pro-rated for the remaining days in the season. In the case of this season, they would be taking on the player's cap hit * (42 days / 185 days).

For LTIR teams, cap hits are not pro-rated. So an LTIR team needs room in LTIR for the entire cap hit, with no pro-rating.

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