Time for a little escrow talk (just a little)

January, 25, 2013
1/25/13
12:54
PM ET
Who feels like a little escrow talk?

Zzzzzz.

Nevertheless, I forge onward.

The NHL and NHL Players’ Association agreed this week to withhold 10 percent of each player's paycheck this season and put it into the escrow fund.

If players’ compensation does not go over their 50 percent hockey-related-revenue allotment for the season, they will be refunded the escrow payments with interest.

However, if the players’ compensation exceeds the 50 percent share, the owners will be paid the escrow money.

The sides will continue to review revenues and revenue projections throughout the season to determine whether the escrow percentage coming off player checks needs to be changed.

Normally, in an 82-game season, the NHL and NHLPA would review the escrow set rate each quarter of the season. But this is a different kind of year.

This season is set at 10 percent (for now), so let’s look at where the NHL and NHLPA set the escrow rate at the start of other seasons.

First-quarter escrow settings:
2005-06: 12%
2006-07: 10%
2007-08: 9.5%
2008-09: 13.5%
2009-10: 18%
2010-11: 17%
2011-12: 8.5%
2013: 10%

Most years, the players get some of that back, sometimes all of it. Here’s how the escrow worked out once the final HRR numbers were finalized each season:

2005-06: The net result is that each player earned 104.64 percent of his 2005-06 contract (includes the shortfall and interest).
Players’ share was 54 percent of HRR.

2006-07: The net result is that each player earned 97.51 percent of his 2006-07 contract.
Players’ share was 55.6 percent of HRR.

2007-08: The net result is that each player earned 100.66 percent of his 2007-08 contract (includes the shortfall and interest).
Players’ share was 56.7 percent of HRR.

2008-09: The net result is that each player earned 87.12 percent of his 2008-09 contract.
Players’ share was 56.73 percent of HRR.

2009-10: The net result is that each player earned 90.59 percent of his 2009-10 contract.
Players’ share was 57 percent of HRR.

2010-11: The net result is that each player earned 97.7 percent of his 2010-11 contract.
Players’ share was 57 percent of HRR.

2011-12: The net result is that each player earned 99.48 percent of his 2011-12 contract. So they got back just under 8 percent of the 8.5 percent they paid in escrow during the year.
Players’ share was 57 percent of HRR.

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