Originally Posted by aislephive
Salary dump trades have to take into account the salary floor. It's not a loophole on any level.
Also, if it's a swap of cash, I don't see how it doesn't go into the owner's pockets, directly or indirectly. What would constitute obvious circumvention in this instance compared to not besides the totally absurd?
it is a loophole. consider a player with $1.1m remaining that you don't want to pay, but are willing to part with a pick. so you trade that player and the pick for a piece costing only $100k. voila, you have just sold your pick for $1m. it has nothing to do with the salary floor.
salary cap/floor is tied to the revenues, not the budgets. cash compensation is hockey related revenue for the team that receives the cash. that much is established. but since team budgets are not open, you can pretty much assume it's coming out of the owner's own pocket.
ETA: to be strict, it's better to consider the players you are trading as useless to the team. for example, AHLers who are useless to the organization at the top level. but this can happen even with teams who are playoff-bound.
because there isn't an open market for picks, they are currently undervalued, or rather their value is decreased due to a liquidity trap. this is really a shame, as it's becoming harder to compete without some solid players getting paid ELC money. so the value of picks and prospects who can contribute should be going up.
Last edited by sylar; 08-15-2012 at 05:18 AM.