Do NFL teams have to place money in escrow for guaranteed contracts?

[jfkbengals]

(06-17-2023, 11:18 AM)Luvnit2 Wrote: I put his here because the Bengals are looking at a lot of large contracts sooner than later. It seems they answer my be no to having to place the full amount of guaranteed money in escrow.

https://profootballtalk.nbcsports.com/2023/04/02/nfls-funding-rule-isnt-mandatory-did-the-browns-make-escrow-payment-for-deshaun-watson-deal/

We have lots of discussion on the cap also the impact teams have on guaranteed contracts. I was under the impression teams were handicapped if they fully guaranteed contracts or even in cases of huge contracts without full guarantees hampered if they place a huge mount of money in escrow to cover the guarantee.

"The section on “Funding of Deferred and Guaranteed Contracts” appears at page 178 of the CBA. It begins like this: “The NFL may require that by a prescribed date certain, each Club must deposit into a segregated account"


I am not sure how the NFL can arbitrarily make some teams make guaranteed money (NFL approves all contracts) be placed in escrow based on the language in the CBA I quoted from the article above.

Thoughts?

The traditional answer is "Yes", the fully guaranteed money must be placed in escrow.  BUT, as you mentioned above, the verbage sates MAY REQUIRE, not SHALL REQUIRE.  This first came to light after either the Watson or Mahomes deal, and no answer has ever been made public on the league's stance as to when it is or is not required to do so.  If memory serves, it was PFT who first brought the issue to light and was attempting to get a public answer as to when it is or is not required.


EDIT:  It was PFT after the Watson deal, the very article you linked.