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10-19-2012, 11:34 AM
Join Date: Jun 2006
Originally Posted by
Thing I still don't understand is whether or not the contract amount is tied to the percentage of revenue that the players get?
If it is tied to the revenue then the players are still getting the contract's "full value". Unfortunately that value has simply fallen due to the new percentage share the players receive under the new CBA. That is something they would've known when they signed the deal, and therefore they shouldn't be complaining about it. Now if their contracts have nothing to do with their share of revenues then you have a completely different story.
At the aggregate level players cannot receive more than 57% of HRR, at the franchise level no team is allowed to exceed the cap ceiling ($70.2M) and at the player level, no player is allowed to make more than 20% of the upper limit of the cap.
Players aren't guaranteed the face value of their contracts, as escrow is applied to withhold a percentage until league revenues are audited and finalized.
So if players share drops from 57% to 50% it translates into a shortfall on existing player contracts of ~$231M this season. This would mean all players salaries would have to be reduced by ~12%.
Last edited by Holdurbreathe: 10-19-2012 at
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