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12-21-2012, 03:59 PM
Do Make Say Think
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Originally Posted by RedMenace View Post
Yeah, but I'm not too bright...

So essentially, it's kinda like income tax withholdings, except at the end of the season the players AND owners might have to share it if total league revenue wasn't high enough?

Seriously, finance/numbers is, by far, my weakest subject.
That's one way of looking at it.

What the PA has proposed in it's latest proposal is to cap the amount the players can pay into escrow, which basically insulates from any drop in revenues. Basically if revenues go up they make more money but if they drop they wouldn't be making any less (depending on the proposed amount for this cap and how much revenues drop).

It effectively removes cost certainty: the only thing guaranteed is the players making the same amount or more money. It's a way for the players to say "it's 50/50 share on paper" but in terms of dollars it would be anything but.

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