Lockout IV: One likes to believe in the freedom of hockey (Moderated: see post #2)
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12-11-2012, 01:45 PM
Join Date: Jul 2004
Originally Posted by
So you're telling me this: Say the cap is 70M. An owner pays out 140M in salary because it's all front loaded deals. Escrow takes away half of it and the players don't get it back. Are we on the same page?
The escrow mechanism is dependent on how much ALL teams spend. So here is an example that might clear things up for you...
3 team league, previous season's HRR was 100M, players share is 50%:
Players' Share = 100M * 50% = 50M
Cap Midpoint = 50M / 3 Teams = 16.67M
Ceiling = 16.67M + 8M = 24.67M
Floor = 16.67M - 8M = 8.67M
Team A: Cap Hit is 20M, Actual Club Salary is 30M
Team B: Cap Hit is 16M, Actual Club Salary is 16M
Team C: Cap Hit is 10M, Actual Club Salary is 10M
In the above example, total salaries paid to the players is 56M. During the course of the year, a portion of each players actual paycheck (based on Actual Club Salary, not Cap Hit) was witheld in escrow. Since the players as a whole were paid 56M in actual salary and they are only promised 50%, if HRR for the year ends up being less than 112M, then a portion of escrow will go back to the Owners. Again, completely independent of Cap Hit.
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