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Rutuu · 07-03-2022, 09:46 PM

An example to illustrate what was stated above.

Oiler's are on the hook for 12.5% of the Salary and Caphit as that is the amount they retained.

Lucic's salary this year is $1.0m, with a $3m signing bonus tacked on and the AAV is $6.0m.
Signing bonus paid by Flames $2.625m this year on July 1st, Oilers pay $0.375m ($3m total for the signing bonus), so the remaining cash owed to Lucic is $1m ($0.875m Flames / $0.125m Oilers).
Cap Hit is $5.25m Flames and $0.750m Oilers.
If traded, Flames owe nothing, Oilers pay $0.125m real money, and retain the $0.750 AAV cap hit.
So new team can take on a $5.25m AAV cap hit for $0.875m of cash.

07-03-2022, 09:46 PM	#5112
Rutuu First Line Centre Join Date: Jul 2002 Exp:	An example to illustrate what was stated above. Oiler's are on the hook for 12.5% of the Salary and Caphit as that is the amount they retained. Lucic's salary this year is $1.0m, with a $3m signing bonus tacked on and the AAV is $6.0m. Signing bonus paid by Flames $2.625m this year on July 1st, Oilers pay $0.375m ($3m total for the signing bonus), so the remaining cash owed to Lucic is $1m ($0.875m Flames / $0.125m Oilers). Cap Hit is $5.25m Flames and $0.750m Oilers. If traded, Flames owe nothing, Oilers pay $0.125m real money, and retain the $0.750 AAV cap hit. So new team can take on a $5.25m AAV cap hit for $0.875m of cash.