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.