The franchise and the player it wishes to retain must come to a mutual agreement regarding the retention and the fee for the 2011 and 2012 seasons. However, irrespective of the actual fee agreed upon by the franchise and the player, the franchise's salary cap will be reduced by the following for each player retained:
$1.8 million per year for the first player retained
$1.3 million per year for the second player retained
$900,000 per year for the third player retained
$500,000 per year for the fourth player retained
Therefore, if a franchise decides to retain four players, it will be charged $4.5 million per year and will have only $4.5 million to spend on other players, compared to the $9 million available to a franchise that retains no one. The size of the squad is capped at 30 players.