Cap to rise 1M next year...players owe owners 1 BILLION dollars

[transplant99]

5 years from the end of this season, the cap may rise by 10M per year.

Just shows what a pounding the league took through the last year and a half.

Escrow is going to annihilate the players moving forward as well.

In addition, sources say that the escrow balance owed by players to owners is in the ballpark of $1 billion following last season, though the exact figure is still being computed following final 2020-21 accounting. A total of $1.1 billion owed is most likely.

But according to a calculation run by Daily Faceoff, NHL players are projected to increase the balance owed to owners in the 2021-22 season – not begin to pay it off – because at $4.8 billion in revenue their projected salaries paid ($2.9 billion) are likely to significantly exceed their allotted 50-50 share of $2.4 billion.

https://www.dailyfaceoff.com/seraval...on-in-2022-23/

[Locke]

If I'm a player right now I would be retiring immediately.

[Strange Brew]

Wow. It's like half a year's worth of salaries were borrowed and guys that leave the league don't have to pay it back.

[Krynn]

DAMN!!!!! I figured it would be high not that high

[Johnny Makarov]

Is this a real billion dollars? or an Ed Belfour billion dollars?

[Macho0978]

This is why we are seeing 8 year deals. Any player 28 or older is looking at a flat cap for years so taking the 8 year guarantee contract seems to be the way to go

I expect this is what Johnny wants

Can the player choose to increase the cap by $1 mil every year that revenue ovet $4.6 bil? If so it could take 5 or more years for the players to pay back the owners

[calumniate]

Conner McDavid's house looks regrettable now.. not that it didn't before!

[Locke]

[foofighter15]

Originally Posted by Johnny Makarov

Is this a real billion dollars? or an Ed Belfour billion dollars?

Think Dr. Evil

[CorsiHockeyLeague]

The cap isn't going up by more than 1M per year until 2026.

[Erick Estrada]

Is this due to the NHLPA continually triggering Escrow escalators over the years preceding the pandemic?

[InternationalVillager]

I understand the general premise of the escrow and that player salaries are pegged to X revenue on a 50% basis but can someone please explain as if you were to a child how this benefits or makes players want 8 year contracts. Thank you.

[Weitz]

Originally Posted by Strange Brew

Wow. It's like half a year's worth of salaries were borrowed and guys that leave the league don't have to pay it back.

Yah I'd be pretty upset to be a young player... But the NHLPA has a long history of screwing over the young players for the older ones.

[Monahammer]

Suter and Parise should have retired lol.

[Boreal]

Originally Posted by CorsiHockeyLeague

The cap isn't going up by more than 1M per year until 2026.

Ah shucks… that’s right when Connor McDavid’s contract expires…

[timbit]

Originally Posted by transplant99

5 years from the end of this season, the cap may rise by 10M per year.

Just shows what a pounding the league took through the last year and a half.

Escrow is going to annihilate the players moving forward as well.



https://www.dailyfaceoff.com/seraval...on-in-2022-23/

On a straight per player basis, without considering prorata , that would be approximately 1.5 million owed, per player.

[Strange Brew]

Originally Posted by timbit

On a straight per player basis, without considering prorata , that would be approximately 1.5 million owed, per player.

That was nice of the owners to front the players that money.

[Dont_trash_Dion]

Well payback is a bitch!!!! I have no sympathy for any player!!! They made this mess!!!

[the_only_turek_fan]

Originally Posted by transplant99

5 years from the end of this season, the cap may rise by 10M per year.

Just shows what a pounding the league took through the last year and a half.

Escrow is going to annihilate the players moving forward as well.



https://www.dailyfaceoff.com/seraval...on-in-2022-23/

This is what I don't understand.

I get that with the 10% deferral and 20% escrow the players will take a 72% cut right off the bat.

Let's say revenues next year are 5B and player salaries even after the escrow and deferral are around 2.7B, how are the owners going to get that 200M back to maintain the 50-50 split?

I feel the owners rushed this and are screwed.

[Macho0978]

Originally Posted by InternationalVillager

I understand the general premise of the escrow and that player salaries are pegged to X revenue on a 50% basis but can someone please explain as if you were to a child how this benefits or makes players want 8 year contracts. Thank you.

I could be wrong but it was negotiated in the last cba that the cap remains flat and the balance owed will be paid back to the owners once the revenue exceeds a 50 50 spilt. 32 teams 81.5 mil per equals 2.6 bil so when revenue exceeds 5.2 bil the amount over goes back to the owners as the cap remains flat. But of course the players have the option to increase it by $1 mil per year. 82.5 mil cap is about 5.3 bil revenue needed

I was under the impression that players don’t have to pay escrow for this as it was decided to keep cap flat until balance is paid. Could be wrong though