NHL, NHLPA Reportedly Agree To Increase Escrow Rate To 20% For This Season
The NHL and NHLPA have "agreed to change this season's escrow rate to 20 percent," according to sources cited by Pierre LeBrun of ESPN.com. That is "up from the 10 percent rate both sides had agreed upon in late January shortly after the season began." The change comes as "a result of lower than originally projected NHL revenues for the lockout-shortened season." If players' compensation "does not go higher than their 50 percent HRR allotment for the season, they will be refunded the escrow payments with interest." However, if the players' compensation "exceeds the 50 percent share, the owners will be paid the escrow money." The NHLPA has "another option if its executive board wishes to dip into the $300 million 'make whole' fund, which owners are paying out to players as per the new CBA over the next three years" (ESPN.com, 3/12).