06-16-2017, 10:03 AM
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#1
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Some kinda newsbreaker!
Join Date: May 2004
Location: Learning Phaneufs skating style
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NHLPA voting on $75 million salary cap. UPD: cap will go to $75 million next season
If the vote goes through, then the salary cap for next season will be $75 million. IIRC that would mean the NHLPA used a 2.5% escalator instead of using the full 5%.
Pierre LeBrun @PierreVLeBrun
The NHLPA's Executive Board is currently voting on a $75-million salary cap upper limit according to NHLPA spokesperson. (con't)
Pierre LeBrun @PierreVLeBrun
Once the vote is complete, and if the vote is yes, the cap for next season can be announced. That could be anytime from today through Monday
Pierre LeBrun @PierreVLeBrun
\\
vote consists of all the player reps. So could take more than a day. We'll see.
Last edited by sureLoss; 06-18-2017 at 11:32 AM.
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06-16-2017, 10:06 AM
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#2
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Powerplay Quarterback
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Why do they keep doing this if they hate the escrow so much?
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06-16-2017, 10:15 AM
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#3
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Franchise Player
Join Date: Sep 2015
Location: Paradise
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Quote:
Originally Posted by pseudoreality
Why do they keep doing this if they hate the escrow so much?
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Because otherwise it would screw over this year's UFA's. I think a 2.5 escalator is a good compromise.
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06-16-2017, 10:17 AM
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#4
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Powerplay Quarterback
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Quote:
Originally Posted by pseudoreality
Why do they keep doing this if they hate the escrow so much?
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If a player signs a contract for 5 years, and they used the escalator is used every year, slowly escrow eats into that contract. If that player then becomes a UFA, they would flip if they sacrificed for 5 years for others to get bigger contracts and when their time for a big contract comes along the NHLPA didn't use it. This would cause there to be a lot less cap space for signing UFAs and downward pressure on the contract the player could sign.
The NHLPA will always use the escalator and to not use it would cause a huge problem internally for the NHLPA.
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06-16-2017, 10:46 AM
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#5
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#1 Goaltender
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2.5 x 30 = 75
Vegas = 75
So basically its like a 5% escalator for the league as a whole.
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06-16-2017, 11:15 AM
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#6
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Norm!
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$73 to $75.
Lots of teams are going to have to make some hard decisions as that's not a significant increase.
__________________
My name is Ozymandias, King of Kings;
Look on my Works, ye Mighty, and despair!
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06-16-2017, 11:53 AM
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#7
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Franchise Player
Join Date: Mar 2007
Location: Income Tax Central
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Quote:
Originally Posted by pseudoreality
Why do they keep doing this if they hate the escrow so much?
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Because they're damned if they do and damned if they dont.
They use their escalator to bump the cap up so more money is available, the biggest problem with escrow is that its a percentage of pay, so the guys at the top suffer more than the guys at the bottom, but the entire goal is to increase the size of the overall pie.
There are more guys at the bottom than there are at the top.
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The Beatings Shall Continue Until Morale Improves!
This Post Has Been Distilled for the Eradication of Seemingly Incurable Sadness.
If you are flammable and have legs, you are never blocking a Fire Exit. - Mitch Hedberg
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06-16-2017, 12:20 PM
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#8
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Franchise Player
Join Date: Oct 2001
Location: Calgary, AB
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Quote:
Originally Posted by Locke
Because they're damned if they do and damned if they dont.
They use their escalator to bump the cap up so more money is available, the biggest problem with escrow is that its a percentage of pay, so the guys at the top suffer more than the guys at the bottom, but the entire goal is to increase the size of the overall pie.
There are more guys at the bottom than there are at the top.
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The escalator doesn't really increase the the size of the overall pie, it just fakes it and I don't agree the top guys suffer more than the bottom guys. They both lose the same percentage. If anything it's the guys at the bottom that are worse off because they can least afford to lose money to escrow.
I'm not surprised they decided to go with only a 2.5% escalator instead of 5% because the escalator really punishes the guys that already have contracts. I bet if Crosby knew he would be killed by escrow so much he wouldn't have signed a 12 year deal when he did. Or he would have asked for more money at the time.
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06-16-2017, 12:39 PM
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#9
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Franchise Player
Join Date: Mar 2007
Location: Income Tax Central
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Quote:
Originally Posted by Fire
The escalator doesn't really increase the the size of the overall pie, it just fakes it and I don't agree the top guys suffer more than the bottom guys. They both lose the same percentage. If anything it's the guys at the bottom that are worse off because they can least afford to lose money to escrow.
I'm not surprised they decided to go with only a 2.5% escalator instead of 5% because the escalator really punishes the guys that already have contracts. I bet if Crosby knew he would be killed by escrow so much he wouldn't have signed a 12 year deal when he did. Or he would have asked for more money at the time.
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Somewhat true, it does fake it, but you know that and I know that but by all indications it doesnt appear that the Players or PA know that.
Again, its largely a shadow game, a higher cap means more money for the players! Except not really.
__________________
The Beatings Shall Continue Until Morale Improves!
This Post Has Been Distilled for the Eradication of Seemingly Incurable Sadness.
If you are flammable and have legs, you are never blocking a Fire Exit. - Mitch Hedberg
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06-16-2017, 12:57 PM
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#10
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Lifetime Suspension
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Why is escrow such a bad thing?
Isn't it just like taxes? At the end of the day, you either have to pay or get a refund.
I read this article: http://nhlnumbers.com/2016/8/12/how-...ern-in-the-nhl
Last edited by robaur; 06-16-2017 at 01:03 PM.
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06-16-2017, 01:05 PM
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#11
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Franchise Player
Join Date: Oct 2001
Location: Calgary, AB
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Quote:
Originally Posted by robaur
Why is escrow such a bad thing?
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Would you want the company you work for to take 15% off your paycheck to make sure they don't overpay you in case the company doesn't meet their revenue projections? If I signed a contract 3 years ago I would hope I actually get paid the amount that was agreed on. The escalator creates a larger escrow and makes it more likely you want get all that escrow back.
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06-16-2017, 01:12 PM
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#12
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Lifetime Suspension
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Quote:
Originally Posted by Fire
Would you want the company you work for to take 15% off your paycheck to make sure they don't overpay you in case the company doesn't meet their revenue projections? If I signed a contract 3 years ago I would hope I actually get paid the amount that was agreed on. The escalator creates a larger escrow and makes it more likely you want get all that escrow back.
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Why does this matter if at the Year-End, all of the player accounts are reconciled based on the terms laid out in the CBA?
The players are able to earn their contracts through the NHL and as per their CBA agreement. It's just a part of the business that they're in.
I don't complain to the government every year if I have too many taxes withheld from my pay throughout the year....I just file my taxes and collect my refund...
The players aren't losing any money....their money is just being withheld so that the exact amounts can be sorted out as per the CBA at year-end....don't understand the fuss. In order to avoid this, maybe the players should have agreed to fixed dollar amounts in advance for the CBA...this is what you get when there variable numbers in play.
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06-16-2017, 01:25 PM
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#13
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First Line Centre
Join Date: Oct 2010
Location: Deep South
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The escalator is dumb. There should just be a mathematical formula built into the CBA that computes the cap for the next year based on prior year HRR. That would keep escrow complaints to a minimum (as the actual cap would be much closer to the right piece of the pie) and there is none of this "can't hurt the UFAs this year" nonsense.
EDIT: Apparently it is not the escalator, but myself that is dumb - my suggestion is basically already what happens. The 5% number (or 2.5% for this year) is projected growth from prior year HRR.
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Last edited by mrkajz44; 06-16-2017 at 02:39 PM.
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The Following 2 Users Say Thank You to mrkajz44 For This Useful Post:
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06-16-2017, 01:29 PM
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#14
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Lifetime Suspension
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Quote:
Originally Posted by mrkajz44
The escalator is dumb. There should just be a mathematical formula built into the CBA that computes the cap for the next year based on prior year HRR. That would keep escrow complaints to a minimum (as the actual cap would be much closer to the right piece of the pie) and there is none of this "can't hurt the UFAs this year" nonsense.
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It seems to be a pretty simple solution. To me, its just a bunch of multi-millionaires complaining over +/-$100K that they won't get during the year to blow on partying.
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06-16-2017, 01:37 PM
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#15
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Franchise Player
Join Date: Oct 2001
Location: Vancouver
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Is there really a lot of complaining about escrow? It is really the only way to ensure that the HRR is divided fairly at the end of the year.
__________________
"A pessimist thinks things can't get any worse. An optimist knows they can."
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06-16-2017, 01:45 PM
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#16
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Franchise Player
Join Date: Mar 2007
Location: Income Tax Central
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Quote:
Originally Posted by mrkajz44
The escalator is dumb. There should just be a mathematical formula built into the CBA that computes the cap for the next year based on prior year HRR. That would keep escrow complaints to a minimum (as the actual cap would be much closer to the right piece of the pie) and there is none of this "can't hurt the UFAs this year" nonsense.
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Absolutely. Couldnt agree more.
Escrow is the Strawman. It was something that was bargained for but I dont see that it benefits the players as much as its like a savings account for the League.
__________________
The Beatings Shall Continue Until Morale Improves!
This Post Has Been Distilled for the Eradication of Seemingly Incurable Sadness.
If you are flammable and have legs, you are never blocking a Fire Exit. - Mitch Hedberg
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06-16-2017, 01:54 PM
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#17
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Franchise Player
Join Date: Oct 2001
Location: Calgary, AB
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Quote:
Originally Posted by robaur
Why does this matter if at the Year-End, all of the player accounts are reconciled based on the terms laid out in the CBA?
The players are able to earn their contracts through the NHL and as per their CBA agreement. It's just a part of the business that they're in.
I don't complain to the government every year if I have too many taxes withheld from my pay throughout the year....I just file my taxes and collect my refund...
The players aren't losing any money....their money is just being withheld so that the exact amounts can be sorted out as per the CBA at year-end....don't understand the fuss. In order to avoid this, maybe the players should have agreed to fixed dollar amounts in advance for the CBA...this is what you get when there variable numbers in play.
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The players with signed contracts are losing money, at least potentially if revenues don't go up enough. It's not the fault of escrow itself, but the escalator increases the chance the entirety of the escrow is not returning to the player.
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06-16-2017, 01:57 PM
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#18
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Franchise Player
Join Date: Feb 2006
Location: Calgary, AB
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Quote:
Originally Posted by mrkajz44
The escalator is dumb. There should just be a mathematical formula built into the CBA that computes the cap for the next year based on prior year HRR.
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That is literally what the escalator is.
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Turn up the good, turn down the suck!
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06-16-2017, 02:00 PM
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#19
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Powerplay Quarterback
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Quote:
Originally Posted by FlamesAddiction
Is there really a lot of complaining about escrow? It is really the only way to ensure that the HRR is divided fairly at the end of the year.
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There is a lot of complaining about escrow. Players hate it. They are not accountants and hate anything coming off their cheque.
If I was on the NHL bargaining team for the next CBA, I'd say okay, no escrow, but the salary cap is now 40% of last year's revenue and you'll get a performance bonus bringing you up to whatever 50% of the revenue ends up being. Although, I don't think the players would want that either. They max (or no) salary cap and no escrow. Well, you can't have it all.
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06-16-2017, 02:01 PM
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#20
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Franchise Player
Join Date: Mar 2007
Location: Income Tax Central
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Quote:
Originally Posted by getbak
That is literally what the escalator is.
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No it isnt.
The escalator is literally taking that mathematical formula and artificially altering it.
"We didnt generate enough revenue to warrant raising the salary cap."
PA: "Okay, but we're going to exercise our escalator clause and raise the cap anyways."
__________________
The Beatings Shall Continue Until Morale Improves!
This Post Has Been Distilled for the Eradication of Seemingly Incurable Sadness.
If you are flammable and have legs, you are never blocking a Fire Exit. - Mitch Hedberg
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