Artemi Panarin provided his view of the current negotiations between the NHL and NHLPA, and if you thought escrow was no longer an issue, au contraine, mon freire. Panarin was very clear in his thoughts, which you have to wonder is the prevailing opinion of many, putting approval of the Return to Play proposal that includes a CBA extension, rumored to be up to six years, and coronavirus related protocols for Phases 3 and 4 somewhat in doubt. if this is the case, the impact could be wide reaching, but as Elliotte Friedman reported, a simple yes majority means that the proposal will pass. In addition, Panarin's tweet has not been met with universal approval, so the next several days should be very interesting.
Larry Brooks' as well as Sportsnet's tweet and column below - of which I included several key experts - focuses on escrow. Panarin's comments focus on the same issue, taking ownership to tasks and stating the players have been carrying too much of the burden. Even if the rank and file largely approve the agreement, could we see a star player or anyone hold out due to dissatisfaction with the deal? In addition, Panarin, who the Post reports has been training for the last week in Aspen, Colo., after having skated a couple of days at the Rangers’ practice facility in the Phase 2 small-group workouts, could remain away from camp until the issue is resolved despite writing he is “very much looking forward to the playoffs with the New York Rangers.”
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.
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.
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.
Some discrepancies exist between what Brooks and Friedman reported, including the cap for the next year at a minimum. Brooks shows a $1.5 million increase while Friedman states the cap will likely be flat for next year and maybe two years beyond. Players have a ton to decide, including the potential rollback Friedman notes, which would impact the $ earned in that year but lower the escrow with the cash returned in the future.
Greg Wysnynski had a good explanation of escrow in his column today: "the escrow system, which calls for a percentage of withholding from players' paychecks each season, maintains that balance by either funneling money back to the owners in the case of a revenue shortfall, or having it refunded to the players"
Player agent Allan Walsh, an opponent of the salary-cap system and a major opponent of escrow, was fairly clear in his view of the league's proposal and said Panarin's tweet was an example of the insidious nature of the NHL's financial system. Whether the majority of the players agree with the view remains to be seen. But a gauntlet and possible division amongst the players may be at hand.
New York Rangers Blogger • 
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