Quote:
Originally Posted by Locke
'Largely Unchanged' I can agree with but the PA will use their 5%(?) Escalator every year. So over 3 years thats still a decent increase.
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The 5% escalator is not a 5% increase over the previous year's cap. It's a 5% increase over the cap as calculated from 50% of the previous year's actual HRR. If HRR remains flat, then the PA would be taking the same base figure every year to add the 5% to.
That means (a) no increase in the cap during that time, and (b) the cap would be calculated on a figure 5% higher than actual revenues warrant, and the players would have to give back that extra 5% in escrow.