Quote:
Originally Posted by iggy_oi
If you look at it in the sense that a player signs a contract in terms of dollars not a percentage of the cap they lose twice in my opinion. If they were scheduled to make $5M for the last season on a max contract(hypothetically) and paid 20% in escrow because the league didn't generate enough revenue, they would lose $1M in pay. Then when they sign their next contract, the cap would be lower so their earning potential would also be decreased. Meanwhile if revenues bounced back or exceeded expectations the following season the league would not be required to pay them over and above what their annual salary is in their current contract.
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If HRR were higher than expected, it is in fact possible for players to receive more than their contract. It works both ways.
Also, if most of the teams budgeted below the midpoint of the salary cap range, player actual salaries would end up being higher than their contracts.
It's quite simple: players get 50% of HRR. If total salaries (contracts) add up to more than that, then they are prorated down to adjust.
If the total of all contracts is less than HRR, they would be prorated up.
There is no negative, except a perceived one.