Quote:
Originally Posted by Textcritic
I don't think this would work well for lower-earnimg players. With most of their salaries already going to cover living expenses it would be a bad idea to put them in a position to potentially return money to the League each month.
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I don't follow what you are saying here and probably because I wasn't very clear. I wouldn't expect them to return money in a month.
At the start of the year, you estimate HRR and the player's share. Players draw say 90% of their share of HRR (each player according to their relative share as determined by their negotiated "salary"), you update your estimate every month, to increase or decrease their draw and then settle at the end of the year. The 10% is a cushion so players aren't ever writing a cheque at the end of the year.
You don't carry forward into future years. This is how law firms, accounting firms etc. pay their partners.
It obviously gets tricky because salaries right now are negotiated dollar amounts which don't have the ability to increase in value over time. You would have to change that model.
The problem with the current system and the reason when players don't like escrow is that it is not entirely equitable. Look a non pandemic year as example.
Player x has salary of $5,000,000. HRR comes in lower than projection slightly. That difference will result in making him less than $5M in the current year, as he will not receive all of his escrow payment. However if HRR exceeds projections, it gets added to next year's salary cap. He doesn't get any kind of bonus for that.
I'm far from that knowledgeable in how the system works but I believe this is accurate. Which kind of explains why players are looking to push some of the shortfall onto future years.