06-05-2024, 11:48 AM
(06-05-2024, 08:02 AM)casear2727 Wrote: Understanding the details of the contract tells you everything you need to know.
Couple of things:
100% is never required to escrow.
1st year cash taken by the player is excluded from escrow calculation.
Future option/roster bonuses are not required to be put into escrow.
Jefferson's contract has 110M guaranteed. 30M of that is a 2025 roster/option bonus.
On top of that, he is to receive over 88M at signing. Thus the guaranteed portion is likely covered. We do not know the exact numbers of the required escrow due to the fact that we do not know how the 5th year option salary was handled, is that 19M included in the "guaranteed" amount? 5th year option is also never required to be escrowed.
Thus there is likely zero due to escrow in Jefferson's case.
Thanks! This was the kind of structural detail I was hunting for. Spotrac has him receiving $38,063,000 at signing and a total of 51.257 million becomes guaranteed later. So 110 million minus the 38,063,000 minus the 51.257 gives roughly 22.7 million they had to put into escrow?