Thread: [Trade] Tim Thomas traded to NYI
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Old 02-07-2013, 04:44 PM   #95
Resolute 14
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Quote:
Originally Posted by albertGQ View Post
How does this trade take $5M out of the player's share?

They get 50% of HRR regardless. I'm not following.
Not out of their share, but out of circulation.

Think of the NHLPA's option to inflate salaries by 5% in the last CBA. That didn't affect their share, but it did affect how much money the owners were paying, before escrow.

From an escrow perspective, the union was better off not using the inflator, because in most seasons, they simply gave that 5% back to the owners on top of what escrow would have been. But the union would rather have as much money in the system as possible up front, and spread the escrow hit across everybody.

This is the same concept, just on a small scale.
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