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01-07-2013, 10:26 AM
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Prior to a season, the league makes a projection of what revenues will be. They take 50% of that projection (the player's share), divide it by 30, and that's what the cap number is per team.

Every time a player gets a paycheck throughout the season, a piece of it is withheld in what's called an escrow account - a special trust where the money is held until actual revenues can be calculated. At the end of the season, if league revenues end up being exactly what they were projected to be, the players will get paid everything in the escrow account. If league revenues were shorter than projected, then players get less. If league revenues were larger than expected, ownership will have to pay up the difference.

In this way both the cap number and the player's actual contract number are adjusted via the escrow system so that the players cumulatively get their 50%. The dollar value of the contract, then, is only an estimate of what players ultimately get.

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