What typically happens to a team's salary cap when a player retires?

When a player retires, the guaranteed money that was initially allocated to that player typically remains on the team's salary cap as dead money. This occurs because the team had committed financial resources to the player, and although they are no longer contributing to the team, the financial impact of the contract persists. This dead money can restrict the team's ability to make other roster moves or sign new players, as that amount still counts against their salary cap limit.

Other options do not accurately describe the typical effects of a player's retirement on salary cap. For instance, replacing the player (as suggested in one choice) often involves navigating the constraints imposed by dead money. The idea that new contracts become void is misleading because the player's exit doesn't automatically trigger contract cancellations for other players. Likewise, the notion that all player contracts automatically renew does not reflect the reality of contract expiration and team negotiations in the offseason; contracts need to be actively negotiated, and not all of them renew automatically.