Current Rule
Salary Cap and Contract Penalties
Salary cap penalties are accumulated by cutting a player who has years left on his contract. There are three methods for cap penalties. In the first two scenarios, the base penalty is 20% of the player’s salary multiplied by the number of remaining contract years. The third scenario relates to players cut within 48 hours of being claimed through UFA, RFA, blind bidding, FCFS waivers or standard waivers. In this situation the base penalty is 40% and is calculated the same as the previous mentioned cap penalties. The allocation of the penalty depends on if the cuts during the off-season period or regular season period.