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Escrow and deferrals, Return to Play Committee and Team Canada rosters...

November 17, 2020, 6:50 PM ET [72 Comments]
Jan Levine
New York Rangers Blogger • RSSArchiveCONTACT
Larry Brooks dropped another bombshell, as to the owners asking for the players to "defer" more money in escrow. There is a familiar name in the Return to Play committee. Team Canada is loaded with the three Rangers on the "White" team listing.

Brooks reports that the NHL owners are going back to the well again, asking for concessions in the form of a 13 percent deferral on 2020-21 pay from players as an opening gambit in Return to Play negotiations for the 2020-21 season. This 13% ask is on top of the 10 percent deferral agreed to by the NHLPA as part of the six-year collective bargaining agreement extension signed in early July. Escrow will be capped — and set — at 20 percent for the season.

The original 10 percent deferral is due to be repaid in three equal installments (without interest) in October of 2022, 2023 and 2024. If the players defer the additional 13 percent, they would be guaranteed 61.6 percent of their pay for 2020-21, with 23 percent due to be returned at later dates.

We start at 100 percent, take off 20% for the escrow, and they are left at 80 per cent. Add in the 10% deferral, which is 10% multiplied by .80, which 8% and we are now at 72% (80-8). Now the owners are asking for 13% additional deferral, which is 72 multiplied by .13 or 9.36. take 72-9.36 and you are at 62.64. Brooks ends up with 61.6 by not including the 10% deferral in calculating the spread. In essence, he takes 80x.13 = 10.4, then takes the 72 I calculated minus the 10.4 to equal 61.6. We shall see who is more accurate.

Owners are crying poverty and we know some would prefer not to play, especially with no fans in the stands, since sitting out would reduce their losses in that situation. Commissioner Gary Bettman will need to strongarm a few and find a way to get consensus amongst all without some breaking ranks. But to ask for another 13%, even as an opening salvo as a way to "prorate" salaries, which is prohibited by the letter though not in the spirit of the CBA, does not appear to be the way to negotiate in good faith.

The players have given and appear to be continually asked to give. The original deferment has no interest, so the present value of what they give up is less than what they will receive, which is sub-optimal. Now you add in the escrow and pile on a possible additional deferment with no sweetener or kicker for the players and you risk mutiny. Granted, where else are others going to play, at least for the most part, with Europe and the KHL fairly stockpiled. But after all the good will of a six-year CBA extension coupled with the completion of the 2019-20 season in the bubble, the league seems to have now tossed in the trash bin and asked for additional concessions.

Get ready for interesting negotiations. Plus, this table provides another twist to be resolved. Can bonuses be clawed back?

Hello Chris Kreider:. Nice to see CK20 on this list. We all know that Kreider is extremely intelligent, speaking several languages. But good to see him showing leadership at the broader league level. Could this a portend of things to come for the Rangers in terms of leadership in the future?

Team Canada has a wealth of prospects for the World Juniors. Just look at the listing on either side of the White and Red ledger. The Rangers' three prospects, Matthew Robertson, Braden Schneider and Dylan Garand, are all on the white team ledger, Schneider brings a physical edge that should earn him a spot and Garand could open the tourney as the starting netminder. Robertson has the toughest battle, based on the blue line depth, but might earn a role as an extra based on his skating and power-play QB ability.

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