Retained salary scenario where a player is traded twice

[Marc the Habs Fan]

I am trying to get clarification on what happens in this scenario. I have seen conflicting info and to my knowledge, we have not seen this type of scenario happen since the retained salary became a part of the CBA:

Let's say player x has a 5 M cap hit. His original team retained 10% of his cap hit.

The team that acquires that player gets him at a 4.5 M cap hit. A year later, that team wants to trade the player and is willing to retain 40% of his cap hit to maximize the value. From my understanding, since it can't be more than 50% of a contract that is retained, the team would be limited to 40%, correct?

Furthermore, is the 40% retained based on his 5 M cap hit overall, or the 4.5 M cap charge on the books of the team that originally traded for him? So basically would the acquiring team have that player for 3 M on their cap or 2.7 M on their cap?

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[TheWhiskeyThief]

Let's say player x has a 5 M cap hit. His original team retained 10% of his cap hit.

The team that acquires that player gets him at a 4.5 M cap hit. A year later, that team wants to trade the player and is willing to retain 40% of his cap hit to maximize the value. From my understanding, since it can't be more than 50% of a contract that is retained, the team would be limited to 40%, correct?

Furthermore, is the 40% retained based on his 5 M cap hit overall, or the 4.5 M cap charge on the books of the team that originally traded for him? So basically would the acquiring team have that player for 3 M on their cap or 2.7 M on their cap?

Team B gets a player with a $5mm cap hit, but team A is paying $500k in bonuses & paragraph 1 salary.

Team B trades player X and retains 40% salary, which means they will pay $2mm in signing bonuses & paragraph 1 salary.

Team C now has a player on a $5mm cap hit for $2.5mm in AAV(actual cash outlay not determined in this scenario), but cannot trade this player using retained salary.

 

[mouser]

I am trying to get clarification on what happens in this scenario. I have seen conflicting info and to my knowledge, we have not seen this type of scenario happen since the retained salary became a part of the CBA:

Let's say player x has a 5 M cap hit. His original team retained 10% of his cap hit.

The team that acquires that player gets him at a 4.5 M cap hit. A year later, that team wants to trade the player and is willing to retain 40% of his cap hit to maximize the value. From my understanding, since it can't be more than 50% of a contract that is retained, the team would be limited to 40%, correct?

Furthermore, is the 40% retained based on his 5 M cap hit overall, or the 4.5 M cap charge on the books of the team that originally traded for him? So basically would the acquiring team have that player for 3 M on their cap or 2.7 M on their cap?

A contract can be involved in a total of two retained salary transactions, up to a maximum of 50% in each transaction. Each % retained is based on the team's existing obligation. So if for example Team A traded player to Team B and retained 50%, then Team B traded player to Team C retained 50% then the total cap and salary obligations for the contract would be:

Team A: 50%
Team B: 25%
Team C: 25%

 

[Marc the Habs Fan]

Thanks mouser. So it's not a limit of 50% of the contract that can be retained. It's 50% of the player's cap charge to a specific team.

I figured it was that way...otherwise you could have a scenario where Team A retains 50%, Team B retains the other 50% and Team C acquires the player and has 0% to pay.