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Leagues and Governing Bodies

NHLPA's Return-To-Play Vote Could Hinge On Escrow Agreement

The Rangers' Artemi Panarin said players should not report to camp until the escrow system is revampedGETTY IMAGES

The full NHLPA membership "will vote on a comprehensive Return to Play proposal that would include a collective bargaining agreement extension as well as coronavirus-related protocols for training camp (Phase 3) and the projected summer Stanley Cup tournament (Phase 4) once ongoing negotiations between the league and the union conclude," and the "issue of escrow is going to be paramount on the economic side when the players cast their ballots," according to Larry Brooks of the N.Y. POST. Sources indicated that the anticipated CBA proposal generated by the league and union "will include a cap on escrow on a de-linked flat salary cap expected to come in around" $83M for "at least three seasons as the parties attempt to deal with the economic issues caused by the pandemic." That number "could be subject to change." That excess "would roll over for the first two or three years, but a hard cap on escrow would be gradually introduced over the life of the extension." That would mean an "end to the strict, linked, 50-50 percentage split of hockey-related revenue between the players and the owners." It is unknown whether the owners "would protect their 50-50 over the full term of the deal even as opposed to on a yearly basis." Without an escrow cap, and "depending on the course of the virus, players could play for no more than 50 percent of their base salary next year." Players also "will be responsible for making up approximately 14 percent of escrow" from '19-20 (N.Y. POST, 6/26). 

IN THE DETAILS: SPORTSNET.ca's Elliotte Friedman cited sources as saying that the potential agreement between the NHL and NHLPA "caps escrow" at 20% for the '20-21 season. Original "guesstimates" were escrow at 35% if this year did not finish and 27-28% "even if it did." Friedman writes there is a "second layer: a one-season-only 10 per cent salary deferral by every player." Friedman: "I’m told this is not a rollback. Players will be returned that money in the future." The benefit to players is the escrow on it "would be lower." As part of the agreement, the salary cap "will be kept close" to the current $81.5M for the next three seasons with the "potential for it to go up" $1M in '22-23 (SPORTSNET.ca, 6/25). 

POTENTIAL STUMBLING BLOCK TO A RETURN: Rangers LW Artemi Panarin on Thursday said that players "should not report to their teams for camp until the league revamps the escrow system." Panarin in a statement posted on Twitter and Instagram said, “For nearly two decades, the players have protected the owners income with escrow, including during this pandemic crisis, even as the owners’ equity continues to grow exponentially. It is time to fix the escrow. We as players cannot report to camp to resume play without already having an agreement in place" (NEWSDAY, 6/26). 

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