Question Regarding Cap Number and trades

Basis4day

Active member
Joined
Aug 15, 2011
Messages
5,924
Reaction score
0
I understand how signing bonuses are apportioned over the entire contract and thus the cap number is spread over those years.
How does this affect a player's cap number when they are traded to another team before the contract expires (For both teams)?

For instance a player who signed a 5 year contract with a 5 million signing bonus who is traded after year 3.

I hope i'm being clear.
 

EverydayImRusselin

Well-known member
Joined
Apr 15, 2013
Messages
2,015
Reaction score
661
I believe if you are traded any future cap hits from bonuses are moved up to this year.
 

kidhawk

Well-known member
Joined
Jun 7, 2009
Messages
23,044
Reaction score
2,906
Location
Anchorage, AK
Trades can have all types of clauses. It's not common but sometimes an old team even takes on some of the current contract or they make a renegotiated contract as part of the deal, but it is correct that if you just straight up trade a player to a team, the new team will take on the rest of the contract and the old team has to eat the remainder of the signing bonus as dead money. That is the general rule of thumb but by no means the only way it will work.
 
OP
OP
Basis4day

Basis4day

Active member
Joined
Aug 15, 2011
Messages
5,924
Reaction score
0
kidhawk":238gmdg2 said:
Trades can have all types of clauses. It's not common but sometimes an old team even takes on some of the current contract or they make a renegotiated contract as part of the deal, but it is correct that if you just straight up trade a player to a team, the new team will take on the rest of the contract and the old team has to eat the remainder of the signing bonus as dead money. That is the general rule of thumb but by no means the only way it will work.

Just what i was looking for. The general idea. Thanks a lot.
 
Top