Quoting: GordM85
This is what I thought before...but Puck Pedia....a rival site to this one had a nugget about caps and buyouts the other day....that if they retained 30% of James Neal contract (5.75M *30% = $1.725M) and then he was bought out by the other team traded to...they get less a cap hit...so essentially from how I understand it, Oilers in this case would need to retain 30% of his total buyout...
His buyout is around 1.9M so 30% retained is $570k....I think it is a wrinkle as teams have traded assets for people on an expiring deal to be bought out(Marleau), but not often have they traded contracts with years left so this may be a wrinkle in CBA that instead of teams buying players out, can trade with retention, have trading team do the buyout and collect assets....$1.3M cap hit in this example to net you players and picks....could be a win win for teams with contracts longer than 1 year to cut down on cap hit buyout and rebuilding teams allowed to build assets and picks for competing down the road for not as big of cash outlay for traditional buyout
So we know Neal has 11.5M left on his contract with 2 years remaining. So 2/3 would be $7,666,667 and it would be spread over twice the remaining term left (2*2) 4 years. When dealing with retained salary buyouts it’s a % retained over the overall contract. So with your example from Puckpedia (I wasn’t aware they had articles) it would look like this.
Detroit Side
(7,666,667 / 4 ) * .7 = 1,341,666.72 yearly
5,366,666.9 over the four years
Edmonton Side
(7,666,667 / 4 ) * .3 = 575,000.02 yearly
2,300,000.1 over the four years
With that being said, the compensation should reflect what 5,366,666.9 cap & cash would cost. So Marleau cost a first round pick top 10 protected IIRC for 6.25M AAV & 4M cash per-Covid. I can’t think of any recent comps outside of that one which was purely picks based. There was the Bickell & Teravainen to Carolina but that’s difficult to dictate value for now. Same for the Orpik (Washington-Colorado) trade since it involved Grubs. I’m not a huge Benson fan so he doesn’t really add too much value imo and I think Yzerman would be after solely picks in this situation considering Holland isn’t moving Holloway nor should he.