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Release RulesIf the player is dropped after the trade deadline, then the hit to the cap changes to 75%, 50%, 25%, respectively.The hit against the cap is rounded to the nearest $500,000. Therefore, if it ends up being less than $250,000, the hit to the cap will be zero for that year.
Note that you can only avoid the cap hit in the 2nd year if the player is dropped after the trade deadline in the first year.