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— Artemiy Panarin (@artemiypanarin) June 25, 2020
For nearly two decades, the Players have protected the owners income with escrow, including throughout this pandemic crisis, in which owners equity has continued to grow exponentially. It is time to fix the escrow. We as players cannot report to camp to resume play without already having an agreement in place. We are all in this together.
Artemi Panarin has major concern with NHL union set to vote on restart package https://t.co/eQ0OxedS2A via @nypostsports
— Larry Brooks (@NYP_Brooksie) June 25, 2020
Sources have indicated the anticipated CBA proposal generated by the league and union will include a cap on escrow on a de-linked flat salary cap expected to come in around $83 million for at least three seasons as the parties attempt to deal with the economic issues caused by the pandemic. That number could be subject to change. That excess would roll over for the first two or three years, but a hard cap on escrow would be gradually introduced over the life of the extension.
If true, that would mean an end to the strict, linked, 50-50 percentage split of hockey-related revenue between the players and the owners. It is unknown whether the owners would protect their 50-50 over the full term of the deal even as opposed to on a yearly basis. It is also unknown just what accommodations the union has made in order to get the escrow cap, even if on a temporary basis.
Without an escrow cap, and depending on the course of the virus, players could play for no more than 50 percent of their base salary next year. If the 2020-21 salary cap is set at approximately $83 million, even though this season’s revenue would ordinarily create a cap of between $65 million-$68 million, escrow deductions could be massive if the season (or portion thereof) is played without fans or if municipal health guidelines limit arena capacities.
Players also will be responsible for making up approximately 14 percent of escrow from 2019-20. (If the 2020 tournament is not played at all, the escrow carryover from this year to next would be about 21 percent.) Panarin, by the way, will be entering the second year of his seven-year, $81.5 million contract.
As the NHL and NHLPA work towards an agreement on returning to play, the two sides are also trying to strike a deal on a CBA extension. @FriedgeHNIC reports that those discussions have included a cap on escrow and a salary deferral for the players. ⬇https://t.co/JMMoJzR6Ev
— Sportsnet (@Sportsnet) June 26, 2020
According to multiple sources, the potential agreement between the NHL and NHLPA caps escrow at 20 per cent for the 2020-21 season. Original guesstimates were escrow at 35 per cent if this year did not finish, 27-28 even if it did.
But there is a second layer: a one-season-only 10 per cent salary deferral by every player. I’m told this is not a rollback. Players will be returned that money in the future. The benefit to them is the escrow on it would be lower.
These are elements of a much more complicated puzzle. One source compared it to a “payment plan you might negotiate with your credit card company.” From an ownership perspective, every dollar owed the teams on the 50-50 revenue split will be repaid over the balance of the CBA.
As part of the agreement, the salary cap will be kept close to the current $81.5 million for the next three seasons. There is potential for it to go up $1 million in 2022-23.
One group of players want escrow eliminated, the other wants highest Upper Limit possible (which will bring with it higher escrow). The salary cap pits players with competing self-interests against each other. Player v. Player...Just the way the NHL likes it! https://t.co/uQ9JmQuMwd
— Allan Walsh (@walsha) June 25, 2020