You can trade players signed over cap but you need to remember that you won't be able to re-sign your own players while over cap and you won't be able to extend a player(if we bring that in) while over cap. You also won't be able to sign your draft picks in the off-season if you're still over cap. Basically the penalty for going over cap is that you are then strictly limited to what's on the wire from there on out until you drop below cap again.
For the other team, they have no right to re-sign that player as is so he's still a rental even if that team is below cap.
I don't see a problem with it if he wants to blow his budget doing it. It would beg to question why he would do that when he could have probably just won a bid for him prior to the trade.
I'm shaking in my fantasy booties.




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Haha