How does a player's retirement affect a team's salary cap space?

When a player retires, the implications for a team's salary cap space can be significant, particularly concerning the concept of "dead money." Dead money refers to the portion of a player's contract that still counts against the team's salary cap despite the player no longer being on the roster. When a player retires, if there is remaining guaranteed salary in their contract, that amount is still counted against the team's salary cap, thus representing a financial burden known as dead money. This means that while the team may not have to pay the player any further salaries, they cannot utilize that cap space for other roster moves, limiting their financial flexibility in managing their salary cap.

The other choices do not accurately reflect how retirement impacts cap space. For instance, a team does not automatically gain cap space when a player retires, as any guaranteed money remains on the books. The idea that a contract is automatically voided is misleading, as retirement does not erase the financial commitments that were previously established. Lastly, team salaries are not redistributed among players simply because one retires; salary cap management operates on a more structured set of rules concerning contracts and dead money.