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duhmetreE
Answering your earlier question, if the escrow balance is paid off before the term of this current CBA, both sides need to come to agreement on how to raise the upper limit:
• Upper Limit will remain at $81.5 Million until Preliminary HRR for the just completed League Year surpasses $3.3 Billion.
• For any League Year where Preliminary HRR is between $3.3 Billion and $4.8 Billion, the Upper Limit for the following League Year shall be between $81.5 Million and $82.5 Million on a pro rata basis (e.g., if Preliminary HRR is $4.05 Billion, the Upper Limit will be $82 Million).
• Once Preliminary HRR for the immediately preceding League Year surpasses $4.8 Billion, the Upper Limit will increase by $1 Million per League Year until the Escrow Balance is paid off.
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The parties can agree to increase the Upper Limit in excess of $1 Million in order to allow for a smoother transition into the ‘Lag’ formula.
Prior to COVID, HRR was ~5B. Next year's HRR will see if clearing the escrow balance is remotely possible in the current term.