Skip to content

Here’s the deal with retaining salary in trades

Jan 8, 2013, 11:02 AM EDT

marleauridingzamboni

More details of the NHL’s new CBA were unearthed on Monday, with a big one — teams gaining the right to retain salary in trades — getting plenty of reaction across the league.

The rule, as according to ESPN’s Pierre LeBrun:

A club cannot absorb more than 50 percent of the players’ annual cap hit/salary in any trade. Any NHL club can only have up to three contracts on their payroll in which the contract was traded away under the retaining salary proviso.

Also, only up to 15 percent of your upper limit cap amount can be used up by the money you have retained in trades.

Take, for example, San Jose Sharks forward Patrick Marleau, who has two years remaining on his four-year, $27.6 million deal — he’s owed $6.9 million in salary annually and carries a $6.9 million cap hit.

Now, say the Sharks want to trade him to Montreal. (NOTE: Marleau has a no movement clause. ANOTHER NOTE: Montreal is mentioned solely for example purposes.)

The new rule would allow San Jose to absorb $3.45 million in both salary and cap hit to facilitate the deal, leaving Montreal to pay the remaining $3.45 million.

Pretty interesting, huh?

The key part is it’ll allow much more flexibility when it comes to flipping players, especially guys with big price tags.

In the case of Marleau (who’s been the subject of trade rumors for a while), one sticking point has always been his contract — he has the NHL’s 23rd-highest cap hit for 2013-14, a hefty chunk of change that potential suitors would have a tough time swallowing.

Chop the incoming cap hit in half, though, and the deal suddenly becomes much easier to stomach.

Latest Posts
  1. WATCH LIVE: Today’s Stanley Cup playoff action

    Apr 26, 2015, 6:20 PM EDT

    Dale Weise, Brandon Prust, Alexei Emelin AP

    Habs and Wild look to advance with Game 6 wins.

  2. Another Blues campaign ends in disappoint as Wild advance

    Apr 26, 2015, 6:18 PM EDT

    St Louis Blues v Minnesota Wild - Game Six Getty Images

    Minnesota’s earned the right to challenge Chicago again.

  3. Dupuis thinks he can play again, but ‘it’s not up to me’

    Apr 26, 2015, 5:45 PM EDT

    Pascal Dupuis Getty Images

    He’ll undergo further testing in the not too distant future.

  4. Report: Toronto approached Chiarelli before he took Oilers job

    Apr 26, 2015, 2:00 PM EDT

    Peter Chiarelli Peter Chiarelli

    The newly appointed Edmonton executive is already busy in his new role.

  5. Glencross to return to Caps’ lineup for Game 7

    Apr 26, 2015, 1:15 PM EDT

    Washington Capitals Headshots

    Eric Fehr would be ready for the second round.

  6. Crosby joining Team Canada at Worlds

    Apr 26, 2015, 12:00 PM EDT

    Canada forward Sidney Crosby raises his stick to hockey fans after Canada beat the USA 1-0 in a men's semifinal ice hockey game at the 2014 Winter Olympics, Friday, Feb. 21, 2014, in Sochi, Russia. (AP Photo/Julio Cortez) AP

    He last played at the 2006 tournament.

  7. Sens’ MacArthur good to go for Game 6

    Apr 26, 2015, 11:30 AM EDT

    Clarke MacArthur Getty Images

    He didn’t play the second half of Friday night’s win.

  8. Pens’ Pouliot headed back to AHL

    Apr 26, 2015, 11:15 AM EDT

    Philadelphia Flyers v Pittsburgh Penguins Getty Images

    Chorney and Dumoulin could also head back to Wilkes-Barre for their playoff run.

  9. Habs’ Parenteau to play Game 6

    Apr 26, 2015, 10:30 AM EDT

    P.A. Parenteau P.A. Parenteau

    He’s been a healthy scratch for three games.

  10. Keith conquers: Blackhawks come back, eliminate Predators

    Apr 25, 2015, 11:03 PM EDT

    Nashville Predators at Chicago Blackhawks Getty Images

    A six-game series that felt like (at least) seven.

  11. Video: Canucks score three in 7:06 to take commanding lead in Calgary

    Apr 25, 2015, 9:59 PM EDT

    Vancouver Canucks v Calgary Flames - Game Four Getty Images

    Vancouver looking to avoid elimination for the second straight game.

Featured video

Plenty of pressure on Blues
Top 10 NHL Player Searches
  1. Z. Kassian (2850)
  2. A. Burrows (2431)
  3. S. Weber (2259)
  4. K. Letang (2138)
  5. M. Giordano (1965)
  1. C. Ehrhoff (1908)
  2. M. Fisher (1845)
  3. D. Carcillo (1785)
  4. L. Bouma (1772)
  5. T. Hamonic (1729)