- Jun 10, 2014
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The cap midpoint is set by actual revenue. What the PA has an option on is the 5% escalator. This allows the midpoint to be set higher than it otherwise would be. The cap would be $3ish Million lower without it. When revenue was growing it was a no brainer decision. But players are currently losing 18% of their salary to escrow. There are many players unhappy about that.
Regardless of the players 5% escalator when the dust settles it is adjusted to = 50% of HRR. That is the important point. It is the actual HRR that sets the number. No escalator, no escrow.