Each team can only retain 50% of the contract. In theory, a player making $8 million could be traded and the initial team could retain $4 million. That team could then trade that player and retain $2 million.
Team A would be on the books for $4 million, Team B for $2 million, and Team C for $2 million.
If Team C buys out the contract, Team A is on the hook for 50% of the buyout, while Teams B and C are responsible for 25% each.
That's exactly what I wanted to know. Thank you!
Seems to me that a trade at %50 retention would be better for LA, then. If they can make that happen, of course. Dion's cap hit is currently 5.25* for 2 more years. And a buyout (according to capfriendly) would leave 4 years with a cap hit of just about 3, 5.5, 1.5 and 1.5 million.
%80 of that being LA's responsibility would leave about:
2019-20: 2.4
2020-21: 4.4
2021-22: 1.2
2022-23: 1.4
Better to retain 2.6 (half LA's cap hit) for the next 2 years than get stuck with that. So the questions left are; who would take Dion at 2.6 million for 2 years? Could he bring back a return? Could LA find a taker who would let them retain less?
LA would undoubtedly find those answers before buying out Dion.
*all my numbers are rounded slightly