RTWAP*
Guest
Can we answer the question about how the escrow is distributed?
I'm interested in a specific scenario. Let's use next year's numbers for simplicity and assume that revenue comes in pretty close to this year's.
Scenario A) The top 10 teams all spend to the cap ($44M) and the bottom 20 teams all spend $32M which would average out to $36M league-wide and result in no escrow payments or salary top-ups.
Scenario B) All the teams spend $44M, which means the league is over the league cap by $240M. Here's where the distribution question comes in. If that $240M is distributed to the 20 teams that would have spend $32M in Scenario A, then they would get $12M each (on average). Which means their actual salary costs after factoring in the escrow distribution would be ... $32M. This is exactly the same as in Scenario A.
So unless there is a huge hole in that supposition, that means the poorer teams in the league have a mechanism to completely wipe out any cap advantage of the rich teams.
That can't be right, can it?
I'm interested in a specific scenario. Let's use next year's numbers for simplicity and assume that revenue comes in pretty close to this year's.
Scenario A) The top 10 teams all spend to the cap ($44M) and the bottom 20 teams all spend $32M which would average out to $36M league-wide and result in no escrow payments or salary top-ups.
Scenario B) All the teams spend $44M, which means the league is over the league cap by $240M. Here's where the distribution question comes in. If that $240M is distributed to the 20 teams that would have spend $32M in Scenario A, then they would get $12M each (on average). Which means their actual salary costs after factoring in the escrow distribution would be ... $32M. This is exactly the same as in Scenario A.
So unless there is a huge hole in that supposition, that means the poorer teams in the league have a mechanism to completely wipe out any cap advantage of the rich teams.
That can't be right, can it?