Quote:
Originally Posted by the_only_turek_fan
Second random question: what if revenue falls more than the 20% the players paid in escrow?
Do the owners eat that?
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The owners are already eating the operating and non-player expenses that will not be covered by their half of the reduced revenue.
I am not certain but I think that the escrow owing will be carried forward.
Say that revenue drops 30% instead of 20% then the 10% shortfall in escrow will be taken added to the next seasons escrow and eventually the revenue rises to the point that their is no need for escrow under the 81.5 M cap and the escrow carry forward will be burnt off.
They did this instead of dropping the CAP by 40% (expected revenue reduction) and making the cap around 50M with the idea that there would be an actual chance to have small escrow with a possible return to the players when the revenues were tabulated.
Sort of works out with the billionaire owners giving the millionaire players an interest free loan against their future earnings.