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10-20-2012, 12:33 PM
  #140
BrooklynRangersFan
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Quote:
Originally Posted by DutchShamrock View Post
I'm pretty sure it's 13% of contracts cannot be reduced by escrow. I don't take it to mean players are asking for 13% of revenues on top of 50/50.

Basically, if you make $100 this season $13 cannot be reduced by escrow reductions. If player share of revenues exceed 50%, $87 can be subject to escrow reductions.

Can someone read the article and confirm my take?
DS, I'm not sure exactly what you mean, but unfortunately it's pretty clear that my interpretation is correct...

Quote:
Option 3: This idea proceeds from an entirely different approach. We take two principles of this negotiation: the owners stated desire to reduce the players share to 50% of HRR, and the Players position that there is no reason to go backwards. This proposal bases that second principle on existing player contracts, not the players’ share. Here is how it works:
• A reduction to 50% from 57% of HRR is a 12.3% cut (that is, 7/57), but the loss in an individual player’s salary would be about 13%. (This is because benefit costs do not fall and these come off the top.)
• The owners honor all existing player contracts. We do this by dividing an existing contract, on a yearly basis, into two separate parts: the 13% and the remaining 87%. The 13% is paid to the player in any event, and it is not counted in the players share and is also off the cap.
• The remaining 87% of existing contracts, plus all new contracts, go into the players’ share (plus all benefits). Thus constructed, the players share will become 50% of HRR, immediately.
• This means that an individual player under an existing contract would receive the 13% segregated, plus a normal payment, subject to escrow, of 87% of his salary. A player with a new contract would have 100% of his salary subject to the 50/50 split. However, since the 13% of existing contracts are off the cap, this should create more cap space, which will be important as the cap will be squeezed.
• Over time, the existing contracts expire, and the share will fall towards 50%. Below is a chart showing the anticipated savings, but these could be greater if there are a significant number of buyouts.
In other words, you can exceed the 50% mark by 13% before escrow kicks in on any current contract. This effectively makes the cap 57% this year (50% x 1.13) and it only declines as NEW contracts get signed that don't have the ability to exceed the 50%. As new contracts begin to make up a larger percentage of the overall number of contracts, you get closer and closer to "true" 50%, but you don't actually get there until the last current contract expires (Shea Weber's deal, in 2026).

Again, they need to move to the middle and give up the idea that they're going to get every penny of every existing contract on time and without escrow regardless of HRR growth.


Last edited by BrooklynRangersFan: 10-20-2012 at 12:50 PM.
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