When teams trade a player, they can retain, or keep, some of the players' salary and cap hit. The team keeps a % of both the cap hit and salary for the remainder of the contract.
Therefore, if a Player with a Salary of $2.0M and a Cap Hit/AAV of $3.0M is traded with 20% retention, the trading team would continue to pay 20% of the $2.0M Salary and would continue to have a cap hit of 20% of the $3.0M Cap Hit.
The maximum retention % is 50%.
Teams can only carry a maximum of 3 Retained Salaries at a time.
An individual contract can only have a maximum of 2 teams retaining salary on it.
The maximum amount of retained salary by a team is 15% of the Salary Cap for the current year.
If a team retains salary on a traded player and that player is later sent to the minors, there is no change to the cap hit for the retaining team.
If a team retains salary on a trade, they cannot reacquire that player for one year from the date of the transaction, unless the contract ends prior to one year.
Latest QuestionsPrice Recapture?
Aug 1, 2022 Sending player on IR to AHL
Aug 1, 2022 LTIR player traded with Retained
Aug 1, 2022 Trading Retained Salary Cap Hits
Aug 1, 2022 Cap Hit on Contract Extensions
Jul 21, 2022 Entry Level Salaries while in Junior
Jul 20, 2022 Buyouts of Retained Contracts
Jul 20, 2022 Bought out Player Retiring
Jul 19, 2022