Quote:
Originally Posted by powderjunkie
Year 1 is 10% escrow, the following 3 years 6%. The far more important things for Nurse are the buyout protection signing bonuses in the back half of the deal.
That extra $3M a year can buy him a lot of earplugs.
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I'm not sure what your point is... but another comment I made was about the front loaded deal, and yes escrow is schedule to be higher in the beginning of the deal, so getting your money earlier will be charged a higher escrow fee and the players are something like 1 billion in the hole, so they need to claw that difference back. But then I made a point that the time value of money kicks in, a dollar today is worth more then a dollar tomorrow, and with inflation schedule to be what it's predicted to be, that may be significant, so that reduces the escrow difference. Also.... escrow is schedule to be lower in the future, but... we don't know if that will hold true, more shut downs may make the escrow remain high, and if NHLPA/NHL increases the cap by 1 million artificially, that money will have to come back in the escrow too.
Our economy, the US economy (players are paid in USD) is screwed... I was looking at the m1 and m2 money supply in the US the other day... it's (m2) gone up 5 fold in just the last few years to sit at just above 20 trillion - that's crazy.... that would mean, for inflation to remain at zero, that productivity (or another offset like population growth) in that same time frame would have to go up 5 fold as well - and I know it hasn't, I know because of COVID, it's been lower than normal. So we have 5 dollars chasing the same products that 1 dollar chased just a few years back... meaning inflation is going to be out of control, there is always a delay in these things, as it turns out, giving money away to people to stay home and not work, it isn't a good thing.
So how does this affect escrow.... if escrow goes down by 4% but inflation is at 4%.... then it doesn't matter, does it, the purchasing power of Nurse's money is the same.