Music: {allcanada} NHL players' escrow settled; they'll get 7.98% back

Friday, October 19, 2012

{allcanada} NHL players' escrow settled; they'll get 7.98% back

NHL Players' Association executive director Donald Fehr has advised his players that he has resolved all issues with the NHL over distribution of escrow funds from last season and they will receive a check for 7.98% of last season's salary by the end of the month.

It is an important issue for the players because they missed their first scheduled paycheck on Oct. 15, which would have covered four days, and will miss a full paycheck on Oct. 30 after the league on Friday canceled games through Nov. 1.

In real terms, players will receive $79,800 for each $1 million of salary they earned in 2011-12.

As an example, Tampa Bay Lightning captain Vincent Lecavalier, who made $10 million last season and is scheduled to make the same this season, would get $798,000 back. He will have lost $1.15 million through the end of October because of the lockout.

The escrow refund check is actually the return of their own money because a portion of salaries is held by the league to ensure that players don't exceed their percentage of revenue sharing. Last season, players were guaranteed 57% of revenue. Owners were able to keep a small amount of the players' 8.5% escrow payment because salaries exceeded the allotted share.

The current stalemated negotiations are about the owners' desire to reduce players' share to 50% of revenue. Talks broke down Friday when the league rejected three counterproposals by the NHLPA.

According to a memo released to players, the funds will be released to the teams by Oct. 23 and they would need to be distributed by Oct. 30. The NHLPA is planning to provide each player with an e-mail detailing their expected return.

In the memo, Fehr's final advice to players was this: "Given the bargaining situation in which we find ourselves, it remains very important to conserve your financial resources."