Flat cap (really) impacting new deals

tarheelhockey

Offside Review Specialist
Feb 12, 2010
84,982
137,355
Bojangles Parking Lot
So if I'm reading this right, it looks like this year the contracts are actually a bit bigger on average and there are a lot more of them? Is that because we're creeping closer to the end of the flat cap?
 

mouser

Business of Hockey
Jul 13, 2006
29,285
12,586
South Mountain
Most of the deals seem a bit longer in term, even for pedestrian players.

I think a lot of this is due to Escrow. Over the next few seasons Escrow should be:

2021-22: ~18%
2022-23: 10%
2023-24: 6%
2024-25: 6%

Every contract signed this summer is pushing money out of those first two years into later years.

Even the below average players signing 2-3 year deals are doing the same to a lesser degree.

Hypothetical example:

A) Player signs three consecutive $1m one year contracts. The gross pay after escrow will be $820k, $900k, $940k. Total of $2.66m.

B) Player signs a three year $1m AAV contract with salaries of $800k, $1m, $1.2m. Gross pay after escrow is $656k, $900k, $1.128m. Total of $2.684m.

A small raise to the tune of $18k, but still more. Then apply the same principle to players signing deals larger then $1m AAV and the gross benefit increases.
 
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