View Single Post
Old 07-03-2022, 09:46 PM   #5112
Rutuu
First Line Centre
 
Rutuu's Avatar
 
Join Date: Jul 2002
Exp:
Default

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.
Rutuu is offline   Reply With Quote
The Following 14 Users Say Thank You to Rutuu For This Useful Post: