03-14-2022, 12:51 AM
(03-14-2022, 12:20 AM)oncemoreuntothejimbreech Wrote: Explain how that works.
As I understand it (and Im sure this is a gotcha post):
In 2020 teams proposed to hold at least 35% of players salaries in escrow to offset costs, players hated it and Im not sure if it even went into effect or if it did that it is still a requirement, but I included it in order to be over instead of short.
Teams have been required to hold cash equal to the guaranteed aspects of contracts for a long time. The deductible has changed but was $2M for a long time as best as I can remember.
Example: 50M contract with 25M guaranteed would require the team to hold 23M in escrow (25-2 =23)
The new CBA raises the deductible of 2M to 15M. So that 50M contract with 25M guaranteed would only require 10M in escrow (25-15 =10).
I'm not sure if that went into effect last season or will start this year.
In 2029 that 15M increases to 17M.
In the case of mega deals such as Mahomes or Burrow the deductible amount (2, 15, or 17) is somewhat negligible until the amount dwindles down after so many years).
Fire away.
