Tuesday, January 27, 2009

Late-Night Escrow Fun

Catching up on my reading, James Mirtle once again provides a great piece of news. NHLPA Executive Director Paul Kelly said on TheFan 590 in Toronto that the Escrow percentage would rise to 22.5% this half of the season, from 13.5%. Many rumors have been swirling about this, with the most notable figures starting at 19.25% and then ranging to 25%.

This means that at the end of the season, 18% (adding the first half escrow of 13.5 to the now 22.5, and dividing by two) of players salaries this year will be held back in Escrow. Although this seems like a great amount (18,000 out of a million dollar salary), the players will most likely lose money this season on their contracts due to rapid contract inflation the past two seasons.

A great article over at HockeyBuzz by Daniel Tolensky takes the revenue projections of the NHL (2% growth, according to Bettman at the All-Star Game), and uses them to calculate the Escrow returns for three scenarios this season, along with how it has looked the last three seasons. His article was posted on Saturday, so he used the rumored figure of 19.25% for escrow.

I think I'm going to try and update and make my own projection chart once I get a few things clarified by some people on this issue. But at any rate, it looks like the players will not be receiving their full salaries this year because of some crazy salaries. As a Ranger fan, I feel bad for others that will lose money when Wade Redden will be making home improvements this summer due to his deal.

Check back tomorrow for more fun, as always.

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