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More On Escrow Payment

from Larry Brooks of the NY Post (reg. req.),
The PA membership was informed by executive director Ted Saskin that the total opening night compensation of $1.031B for 713 roster players accounted for a 12 percent overage of the 54 percent allowed the players as measured against the projected 2005-06 league revenues of $1.803B. The $1.031B includes $23M in earnable bonuses. The 731 roster players includes 34 on Injured Reserve. Escrow will be computed again and adjusted if necessary at the quarter-mark, halfway-mark and three-quarter mark of the season. In his memo, Saskin informs the players that the revenue projection is "very conservative," and does not include the $65M from the OLN television contract or the $10M from the league's satellite radio deal. He also states that the revenue projection was on a "contemplated significant drop in attendance . . . that does not [match] the current 3-percent rise in season-ticket renewals. "The forecast of year-end revenues is significantly higher [than $1.803B]." As cited in the memo, if league revenues reach $1.85B, escrow for the season will amount to 9.5 percent. Should revenues reach $2B, escrow will be $1.7 percent. If, however, revenue is $1.6B, then players will be hit with a season escrow of 22.6 percent. And if escrow is 22.6 percent, someone other than Saskin will be sending out the escrow memos next year.

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Paul Kukla founded Kukla’s Korner in 2005 and the site has since become the must-read site on the ‘net for all the latest happenings around the NHL.

From breaking news to in-depth stories around the league, KK Hockey is updated with fresh stories all day long and will bring you the latest news as quickly as possible.

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