CBA Negotiations III: Why Can't We All Just...Get Along?
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12-13-2012, 01:30 PM
Join Date: Oct 2012
Originally Posted by
"Good news! I'm reducing your overall salary, you'll have to pay less in taxes!"
It's a silver lining, but it's tarnished. All players will be giving less in escrow because their share of the projected earnings will be less. I'm sure they're jumping with joy.
Escrow payments are made for dollars over the HRR split that players received. When a superstar is making 10M in salary in a given year with an AAV of 7M for a cap hit then everyone else in the league is, in theory (assuming players are, league-wide, over the HRR split percentage already), paying escrow on the extra 3M he made.
My point was that cap limits help the second tier players and lower by reducing escrow hits due to superstars on long term, cap-circumventing deals - I never tried to say that it wouldn't affect the superstars' bank accounts because it will.
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