tfriede2
Registered User
- Aug 8, 2010
- 4,523
- 2,990
Question about escrow - I understand that players and owners split revenues. If revenues are less such that a player doesn’t receive his full salary for a particular year, is the player still entitled to receive the remainder of that year’s lost salary in future years when revenues rebound, or is that salary simply lost? This question, I think, might affect how Petro’s situation could play out.
The sports world, and the NHL in particular, is in a very precarious spot with Covid. I don’t know how Stillman can commit huge dollars with the uncertainty over when fans will be allowed to attend games, and how many will choose to attend games when they’re allowed to do so. Revenues plummeted this year, and they will likely be nowhere near normal next year either. When will they return to normal? That’s an unanswerable question, and represents a contingent liability.
While the cap has remained flat, the revenues will most likely be far lower than its cap counterpart. The end result? Players are worth far less now than a year ago, unfortunately for Petro and other UFAs this year. Petro and his agent can’t expect or negotiate as of it’s 2019. Some might think than an offer to Petro at just above 7 per is an insult - is it?
Back to escrow, if a player is still entitled to lost salary in future years when revenues rebound, that could motivate teams to offer less than usual to attempt to further insulate themselves from those future liabilities.
(I haven’t researched how escrow works, so feel free to correct me - and I know you all will - thanks!)
The sports world, and the NHL in particular, is in a very precarious spot with Covid. I don’t know how Stillman can commit huge dollars with the uncertainty over when fans will be allowed to attend games, and how many will choose to attend games when they’re allowed to do so. Revenues plummeted this year, and they will likely be nowhere near normal next year either. When will they return to normal? That’s an unanswerable question, and represents a contingent liability.
While the cap has remained flat, the revenues will most likely be far lower than its cap counterpart. The end result? Players are worth far less now than a year ago, unfortunately for Petro and other UFAs this year. Petro and his agent can’t expect or negotiate as of it’s 2019. Some might think than an offer to Petro at just above 7 per is an insult - is it?
Back to escrow, if a player is still entitled to lost salary in future years when revenues rebound, that could motivate teams to offer less than usual to attempt to further insulate themselves from those future liabilities.
(I haven’t researched how escrow works, so feel free to correct me - and I know you all will - thanks!)