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Old 10-12-2020, 10:24 PM   #120
getbak
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Quote:
Originally Posted by the_only_turek_fan View Post
Help me explain something.

If the cap is 81.5M and you have contracts signed worth 79M and revenues fall so after escrow your actual cap is 76M. What would you do?
I'm not sure what exactly you're asking about.


For next season, escrow is fixed at 20% and will fluctuate over the next few seasons until revenues return to normal and the league is made good for any money that is overpaid to the players.

If a player has a $10 million contract, he'll only get paid $8 million next season. If a player has a $1 million contract, he'll only get paid $800,000. If a player starts the season in the AHL and gets recalled due to an injury, he'll only get paid 80% of his NHL salary while he's called up.

Escrow is only a factor with the actual dollars paid to the players and has no impact on cap calculations. If a player has a $10 million cap hit, he'll still have a $10 million cap hit against the $81.5 million cap.

For the next few seasons, the cap is going to basically be fake placeholder numbers that don't really relate to what the players will actually be getting paid. The cap won't be going down if revenues drop, it just means that escrow will go up to make up the difference between the cap numbers and the real dollars.


I'm not sure if that answers your question or just makes it more confusing.
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