Pay back escrow this year, or amortize over next 5 years

[Golden_Jet]

Would it be better if the players and the NHL took the full hit of escrow this year based on projected revenues, of a 48 game season. I've heard 1.6 -2 billion in revenues projected. This is meant to be what is better for the league from an overall growth perspective.


or would it be better to

Pay back the escrow over 4-5 years, like in the MOU and live with the flat cap over that term.

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[North Cole]

I assume this is from the players perspective?

The players should amortize 100% of the time, if given the option. Money today is worth more than money tomorrow, the older players and guys who signed UFA contracts, which probably have a bigger voice in the union than guys on ELC or RFA, aren't going to want to take a big hit in their contract today. Unions in general keep the guys with seniority happy, and push the buck to the newer members. One of the reasons I always laugh that the players hate escrow, but have no issue collectively taking aggregate contracts over the midpoint every year.

I'm sure guys on six year contracts like McDavid don't really care about a four year flat cap, it'll be unwinding when they come due for their next pay day.
No way guys in their late 30's or early 40's would want a +50% escrow hit this year, they're on likely their last good contract and they'll want to keep as much as possible going into retirement.
A guy like Brodin would want to rip the bandaid off, since he back loaded his contract, that's more money he gets to keep later.

Seems like a no brainer to keep escrow lower and take bigger deferrals to keep the owners happy.



Owners perspective - doesn't much matter. I'd think the owners would want more deferral than more escrow, since you'd probably rather have less actual cash out the door right now than worry about getting it back in 6 or 7 months. They also probably like the idea of breaking even quicker, but they know they would have absolutely no shot in hell of getting the NHLPA to agree to +50% escrow.

 

[Golden_Jet]

I assume this is from the players perspective?

The players should amortize 100% of the time, if given the option. Money today is worth more than money tomorrow, the older players and guys who signed UFA contracts, which probably have a bigger voice in the union than guys on ELC or RFA, aren't going to want to take a big hit in their contract today. Unions in general keep the guys with seniority happy, and push the buck to the newer members. One of the reasons I always laugh that the players hate escrow, but have no issue collectively taking aggregate contracts over the midpoint every year.

I'm sure guys on six year contracts like McDavid don't really care about a four year flat cap, it'll be unwinding when they come due for their next pay day.
No way guys in their late 30's or early 40's would want a +50% escrow hit this year, they're on likely their last good contract and they'll want to keep as much as possible going into retirement.
A guy like Brodin would want to rip the bandaid off, since he back loaded his contract, that's more money he gets to keep later.

Seems like a no brainer to keep escrow lower and take bigger deferrals to keep the owners happy.

Good point,
it was more of what is better for league overall growth, or what you would prefer.

 

[North Cole]

Good point,
it was more of what is better for league overall growth.

Sorry, threw in a quick edit about the owners. What's better for league growth is probably doing what it takes to have a season and scraping by, rather than an outright shutdown. How the money moves around matters for a few teams that may have severe money issues right now, but the league in general is better off not being out of sight out of mind. Really depends what costs they can shed and still run a season, without having teams fold.

I'm sure they will figure something out, it's in both parties interests to play.

 

[Pavel Buchnevich]

Is there an option where we don’t read from the owner talking points?

 

[Golden_Jet]

Is there an option where we don’t read from the owner talking points?

Feel free to comment from owners or players point of view

 

[Mickey Marner]

Should've been a salary rollback.

But it would be in the PA's best interest to amortize their debt.

 

[CupfortheSharks]

Why would the players under contract agree to a massive escrow payback and an artificially inflated flat cap? They wouldn’t. If owners insisted on full payback through escrow, the cap for next year would have gone down significantly.

 

[surixon]

People live in the here and now these days so the players absolutely are going to want to hold onto whatever they have now. They don't care that much about the health of future players.

The owners I think want enough cash to get by this year which likely can be achieved through the deferral ask. The owners likely also dont want to piss off the players by taking half of their pay cheque even if the circumstances call for it.

 

[SotasicA]

A big bunch of current players won't even be in the league 4-5 years from now. Players will definitely prefer to have as much as possible today, and then worry about making the owners whole later. So several years of flat cap + high escrow is the preferred choice.