Originally Posted by texasdave
So the end result could be that the richer clubs who are over the cap could use this amnesty clause to get under the cap and then sign another stud free agent?
Here is my understanding of how it works.
You can use it once and the player that you drop goes into a waiver type draft where teams can bid on how much they want to pay him. So if Player X is making $12M a team could bid $3M for him and if they are the high bid they pay him that and the other team pays him the remaining contract value, but it doesn't count against their cap.
In theory yes a team can drop a player and use it to sign another free agent, but you can only use this one time.