2020-2021 salary cap. Upd Sept BOG est $84.5m

Fourier

Registered User
Dec 29, 2006
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Waterloo Ontario
Your one time rollback is for the entire value of a players contract. So I think the PA is more likely to just continue to limit the use of the escalator to slowly bring the escrow down.

Like most have said, when players sign long term deals until they are 38 or whatever and end up on ltir it translates into the team trading that player to a cap floor team and then spending more money on another player.
I am not sure what you mean here. Someone with a nominal salary of $5M would now have a nominal salary of $4.5M. But the change is primarily symbolic since the actual value in real dollars of the contract remains the same at the time of the roll back.

Limiting the use of the escalator will not bring escrow down any further under the current system because they are already at nearly 0%. They would have to move to a negative escalator to do so.
 

MNNumbers

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Nov 17, 2011
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I am not sure what you mean here. Someone with a nominal salary of $5M would now have a nominal salary of $4.5M.

Limiting the use of the escalator will not bring escrow down any further under the current system because they are already at nearly 0%. They would have to move to a negative escalator to do so.

Fourier,
The argument from the players goes like this:
We don't like it that so much of our salary is lost in escrow. We sign a contact for 7.5M in a given year, and end up being paid 6.75M instead. That doesn't seem right. We are being taken advantage of somehow......

If that's their argument (which is a bad argument, I agree, because they all should know how escrow works), then it is very unlikely that they would appreciate logic like: Hey, if we roll back your contract from 7.5M to 6.75M you don't really lose anything because you are losing it in escrow anyway.

The players won't like that because, even if they understand the math, it gives away all their leverage.
 

Fourier

Registered User
Dec 29, 2006
25,444
19,579
Waterloo Ontario
Fourier,
The argument from the players goes like this:
We don't like it that so much of our salary is lost in escrow. We sign a contact for 7.5M in a given year, and end up being paid 6.75M instead. That doesn't seem right. We are being taken advantage of somehow......

If that's their argument (which is a bad argument, I agree, because they all should know how escrow works), then it is very unlikely that they would appreciate logic like: Hey, if we roll back your contract from 7.5M to 6.75M you don't really lose anything because you are losing it in escrow anyway.

The players won't like that because, even if they understand the math, it gives away all their leverage.
This is exactly why I said that I did not think the players would see it as I do.
 
Last edited:

StreetHawk

Registered User
Sep 30, 2017
25,607
9,435
I am not sure what you mean here. Someone with a nominal salary of $5M would now have a nominal salary of $4.5M. But the change is primarily symbolic since the actual value in real dollars of the contract remains the same at the time of the roll back.

Limiting the use of the escalator will not bring escrow down any further under the current system because they are already at nearly 0%. They would have to move to a negative escalator to do so.
So, if I have 4 years and $20 million left on my deal, $5 million cap hit, I should roll back my salary down to $4.5 million, and have $18 million left where escrow is hopefully going to be around 2-3% of that $4.5 million. Versus, keeping the status quo and losing 10-14% (as 14% was the Q1 rate this season), and hoping I get whatever I get back when it gets finalized.

Unless the CBA were to max out the escrow rate to something low like 2-3%, I don't think the players are going to do a 10% or whatever rollback anymore. Think they will all just live with it and work with the NHL on a new formula to determine the cap ceiling and floor that reduces the escrow amounts.

There's another thread on his page that is saying that the 17-18 season which concluded on June 30, 2018 (18 months ago) the final HRR and escrow repayment has not be finalized yet. Should not take 18 months to finalize this stuff.
 

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