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NHL players will receive escrow checks soon

Oct 19, 2012, 5:13 PM EDT

Alex Ovechkin Getty Images

Even though the lockout is still in full force, the players will get some money from the owners by the end of the month, according to TSN’s Bob McKenzie. The players are still owed escrow checks for their services last season.

McKenzie estimates that 8.5% was withheld from every player’s contract last season to go in the escrow fund. Escrow is a tool used under the previous CBA to guarantee that the players got a 57% share of hockey-related revenues — no more, no less.

It has been determined that the players will now be paid back 7.98% of their annual contract’s value. In other words, they’re going to end up making something like 99.48% of what they signed for. So if you thought a player made $1 million last season, the truth is he actually made closer to $994,800.

Still, the fact that they’re getting this money in the middle of a lockout might help players who are starting to notice the missed paychecks. If it wasn’t for the lockout, they would have gotten paid on Oct. 15 and again at the end of the month, according to the USA Today.

Even if this was money they were owed anyways, it must help psychologically to get a check at a time like this.

NHLPA boss Donald Fehr issued a memo to players regarding their escrow checks and advised them to conserve their financial resources in light of the current bargaining situation.

The percentage of the contract that players actually make varies from year-to-year. Sometimes they make far less than what they signed for, but they’ve also made 104% one year, according to McKenzie.

This is all very dry, but it’s still worth keeping in mind because escrow is likely to be a big part of the next CBA and how it’s handled is something that the players and owners have spent a lot of time talking about.

  1. bagjr387 - Oct 19, 2012 at 5:47 PM

    I’d love to compare there “escrow check” to my actual check….just to see how much money they are still making.

  2. kmg1016 - Oct 19, 2012 at 5:54 PM

    Probably helps psychologically more than physiologically… Just sayin’.

  3. mpg44 - Oct 19, 2012 at 7:13 PM

    Wait till they see their checks for next year…. Oh , that’s right , you would have to play and get fans to spend their money on your first ! Good luck with that!!!

  4. 8man - Oct 19, 2012 at 7:24 PM

    That’ll be the last time they get 57% and rightly so.

    Lock ‘em out and replace ‘em.

    Go owners!

  5. nepo784 - Oct 19, 2012 at 9:09 PM

    @8man… Ur a clown

  6. bcjim - Oct 19, 2012 at 10:30 PM

    @8man… u r 100% right.

    • blomfeld - Oct 20, 2012 at 2:26 AM

      BETTMAN RULES !

      I also agree with 8man, as the script calls for the owners to prevail in the end … like it was supposed to be any different ?

  7. therealjr - Oct 20, 2012 at 12:47 AM

    As has been mentioned before, it’s not about ‘honoring the contracts’. The CBA is the only contract that matters, and as long as it was in effect, they got their 57% of revenue. The contract that was in place was honored, and the next contract/CBA will be honored. In fact, much of this was orchestrated by the players. Had they not kept opting to kick up the cap every year and in turn cause salary inflation, the last deal would have had them ending up way over 100% back in escrow the last few years.

    I think the NHL should agree to ‘honor the contracts’ as the players have insisted. In turn the cap should remain at $65-70M for the entirety of the CBA and the owners should drop any defined revenue percentage. That way, when the league is flourishing in five years and the players share is more like 45-50% the owners can tell them to shut up and honor their contracts.

  8. manchestermiracle - Oct 20, 2012 at 6:23 PM

    What? The NHL couldn’t find a way to renege on a contract? Wow, it looks like a (very small) chink in their armor. What’s an average check going to look like? Probably not enough to cover one month’s mortgage. In the example above it would be $5,200. At least some of the Kings can pay their champagne bills.

  9. davida2012 - Oct 21, 2012 at 3:01 AM

    Ya lock em out see ya players. @8man I agree !!!! Go owners

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