Quote:
Originally Posted by DoubleK
Fair. Answer me this. Why do you think that escrow is capped in any given year of the MOU?
Hint: It's not. It's not 10% then 6% thereafter due to that exact clause. Of HRR doesn't recover after the 21/22 season, escrow will make up the difference.
Escrow is "capped" for the next two seasons, but it's really not as the balance is made up in future seasons.
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Pretty sure you're wrong on this actually. That sentence is related to reducing the escrow rate once the balance is paid off (not raising it when it seems impossible to be paid off).
Quote:
The schedule below lists the maximum Escrow Percentages for a
given League Year (“Maximum Escrow Percentages”). With the
exception of the Escrow Percentage for the 2021/22 League Year
(which shall be determined as set forth below), the applicable
Maximum Escrow Percentage shall be utilized for a given League
Year. However, in the event that the Maximum Escrow
Percentage would, based on jointly-developed forecasts for HRR
and League-wide Player Compensation for that League Year,
result in an Escrow Balance of zero following the completion of
that League Year, the parties may negotiate a lower Escrow
Percentage for that League Year (i.e., the goal being to get the
Escrow Balance to zero). To the extent that utilizing the
Maximum Escrow Percentage for a given League Year results in
an Escrow Balance or does not eliminate an Escrow Balance, any
such Escrow Balance shall carry forward into (and be factored
into the setting of the Escrow Percentage for) the following
League Year (with the exception of the 2021/22 League Year).
2020/21 20%
2021/22 14% if Preliminary HRR for the 2020/21
League Year equals or exceeds $3.3
Billion; 18% if Preliminary HRR for the
2020/21 League Year equals or is below
$1.8 Billion; pro-rata rate in between $1.8
Billion and $3.3 Billion (e.g. Escrow
Percentage of 16% if HRR is $2.55 Billion)
2022/23 10%
2023/24 6%
2024/25 6%
2025/26 6%
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The wording is a bit weird, but there is nothing that that contradicts the idea that the specified numbers are in fact 'maximums'.