WHAT WILL THE IMPACT BE ON ESCROW AND THE SALARY CAP?
Could be substantial. Right now, the players are being paid with minimal league revenue made. Since the CBA is designed to be 50/50, their escrow — already a bone of contention — will see a significant spike if play doesn’t resume. The highest escrow rate I can remember being deducted was 22.5 per cent, around the time of the 2009 NHL All-Star Game in Montreal. One player said Friday he thought the percentage held up if there’s no more hockey would not be far from that.
As for the cap: before Wednesday, the word being floated around was $700 million in revenues at risk. As the pause was being announced, the number was $1 billion. One week after an $84-$88 million cap estimate, there is worry it will go below the $81.5 million we’re at for 2019-20. (Some teams were getting ready to present their 2020-21 ticket packages, too.)
A lower cap doesn’t just hurt the players, it hurts the teams. The NHL wouldn’t want a situation where teams had to buy out three guys to hit a lower number. At a time when CBA discussions are going on anyway, there is incentive for the NHL and NHLPA to work together on this. In 2011-12, the cap number was $64.3 million. The next season was shrunk to 48 games because of a lockout. The two sides agreed that, no matter what, 2013-14 would be back at $64.3 million. So, there’s precedent.