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LeBrun - Sources: Escrow Rate to 20%

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03-12-2013, 02:11 AM
  #1
DL44
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Escrow Payments have jumped from 10% to 20%

Source 'NHL Tonight' on NHL Network.

Player escrow payments have now jumped from 10% to 20%!

Revenues have not met levels appropriate for the $70.2 mil cap... DUUHHHH..

Expected... but always a slap to realityfor players to see that on your paystub...

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03-12-2013, 02:14 AM
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danishh
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high escrow was expected this year. Not really surprising.

i'm interested to see what they are next year, with a cap number that was not linked to actual reveneues.

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03-12-2013, 03:15 AM
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DL44
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Quote:
Originally Posted by danishh View Post
high escrow was expected this year. Not really surprising.

i'm interested to see what they are next year, with a cap number that was not linked to actual reveneues.
If a 70.2 mil cap is producing a 20% escrow, with the $64.* mil cap it will defintely be reduced... add in the min inflation of revenue at about 3% with the 8% drop in player cost, the full schedule, Winter Classic, Heritage Classic, Olympics, minus the inflation of costs... it should go to about that 10% figure again to start... WHere it goes during the season will the story...

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03-13-2013, 01:47 AM
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Fugu
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LeBrun - Sources: Escrow Rate to 20%

http://espn.go.com/nhl/story/_/id/90...ording-sources

Quote:
Sources: Escrow rate to 20 percent
Updated: March 12, 2013, 5:48 PM ET
By Pierre LeBrun | ESPN.com

The NHL and NHL Players' Association have agreed to change this season's escrow rate to 20 percent, sources confirmed to ESPN.com.
That's up from the 10 percent rate both sides had agreed upon in late January shortly after the season began.

The change comes as a result of lower than originally projected NHL revenues for the lockout-shortened season.
LeBrun mentions the players can dip into their $300 MM Make Whole fund as protection against escrow (over the next three years, inclusive).

Nice summary at the end showing the amount players received as a % of their contracts for each year since the escrow system went into place:

2005-06: 104.64% of contract; 54% share of HRR.
2006-07: 97.51% // 55.6%
2007-08: 100.66% // 56.7%
2008-09: 87.12% // 56.73%
2009-10: 90.59% //57%
2010-11: 97.7% // 57%
2011-12: 99.48% // 57%


Last edited by Fugu: 03-13-2013 at 11:24 AM. Reason: % of contract received for year
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Old
03-13-2013, 02:51 AM
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danishh
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Quote:
Originally Posted by Fugu View Post
http://espn.go.com/nhl/story/_/id/90...ording-sources



LeBrun mentions the players can dip into their $300 MM Make Whole fund as protection against escrow (over the next three years, inclusive).

Nice summary at the end showing the amount players received each year since the escrow system went into place:

2005-06: 104.64% if 54% share of HRR.
2006-07: 97.51% // 55.6%
2007-08: 100.66% // 56.7%
2008-09: 87.12% // 56.73%
2009-10: 90.59% //57%
2010-11: 97.7% // 57%
2011-12: 99.48% // 57%
that summary is most interesting. The players and PA ***** about escrow all the time, but really there was only two bad years for them (2008-10).

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03-13-2013, 10:19 AM
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cheswick
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Quote:
Originally Posted by DL44 View Post
If a 70.2 mil cap is producing a 20% escrow, with the $64.* mil cap it will defintely be reduced... add in the min inflation of revenue at about 3% with the 8% drop in player cost, the full schedule, Winter Classic, Heritage Classic, Olympics, minus the inflation of costs... it should go to about that 10% figure again to start... WHere it goes during the season will the story...
Isn't just changed now to 20%? So on whole for the season its roughly 15%. 10% first half and 20% second half. They calculated that the 10% would be insufficient so they increased it. They have done that in the past.

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03-13-2013, 10:56 AM
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mouser
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Quote:
Originally Posted by Fugu View Post
http://espn.go.com/nhl/story/_/id/90...ording-sources



LeBrun mentions the players can dip into their $300 MM Make Whole fund as protection against escrow (over the next three years, inclusive).

Nice summary at the end showing the amount players received each year since the escrow system went into place:

2005-06: 104.64% if 54% share of HRR.
2006-07: 97.51% // 55.6%
2007-08: 100.66% // 56.7%
2008-09: 87.12% // 56.73%
2009-10: 90.59% //57%
2010-11: 97.7% // 57%
2011-12: 99.48% // 57%
Those figures are right if you're asking how much players received back from escrow, but wrong if you're trying to determine how big the player share of HRR was. Reason being those figures include interest earned in the escrow fund during the course of the year. For example some of the actual overage figures I have are:

2006-2007: -2.76% (became -2.49% with interest)
2007-2008: +0.48% (became +0.66% with interest)

They're probably relatively close to the same for later years with interest rates at like 0.10%.

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Old
03-13-2013, 11:27 AM
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Fugu
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Quote:
Originally Posted by mouser View Post
Those figures are right if you're asking how much players received back from escrow, but wrong if you're trying to determine how big the player share of HRR was. Reason being those figures include interest earned in the escrow fund during the course of the year. For example some of the actual overage figures I have are:

2006-2007: -2.76% (became -2.49% with interest)
2007-2008: +0.48% (became +0.66% with interest)

They're probably relatively close to the same for later years with interest rates at like 0.10%.

Looking at the article, LeBrun states that the share listed is what each player earned as a % of his contract for that year. I'll update.

Quote:
Originally Posted by danishh View Post
that summary is most interesting. The players and PA ***** about escrow all the time, but really there was only two bad years for them (2008-10).

Depends on how you look at it. 07/08 and 11/12 they were a half point below and above 100%. The first year they were almost 5% over, but that makes sense since the first year was based on projected HRR, and no actual prior year amount. Two years at 2-3% below, and then two horrific years at a 9-12% cut. That's almost twice the amount of the best 'overage' year.

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Old
03-13-2013, 04:39 PM
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jessebelanger
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Quote:
Originally Posted by mouser View Post
Those figures are right if you're asking how much players received back from escrow, but wrong if you're trying to determine how big the player share of HRR was. Reason being those figures include interest earned in the escrow fund during the course of the year. For example some of the actual overage figures I have are:

2006-2007: -2.76% (became -2.49% with interest)
2007-2008: +0.48% (became +0.66% with interest)

They're probably relatively close to the same for later years with interest rates at like 0.10%.
I've been thinking of a second career as an accountant..I think you just put the axe to that

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