TheGhostofJimKelly
07-04-2007, 08:30 AM
If salaries exceed 54% of the league revenue, the players must give back money. I guess these salaries won't necessarily cause a lockout in '11.
Fans see all the big-dollar free-agent signings and the whopping arbitration awards and they think that the owners are overspending again.
They are. But they're spending the players' money. Once the salaries exceed 54% of league revenues, the players have to make up the shortfall. That's where the escrow comes in.
Strachan is right. The owners aren't spending real money in a sense. If league-wide spending on player salaries exceeds the current 54 percent limit allowed under the CBA, the players have to give money back to the owners.
The actual article is missing, but here is a tidbit on it:
http://www.andrewsstarspage.com/ADSPBlog/archives/archive_2006-w35.php
Fans see all the big-dollar free-agent signings and the whopping arbitration awards and they think that the owners are overspending again.
They are. But they're spending the players' money. Once the salaries exceed 54% of league revenues, the players have to make up the shortfall. That's where the escrow comes in.
Strachan is right. The owners aren't spending real money in a sense. If league-wide spending on player salaries exceeds the current 54 percent limit allowed under the CBA, the players have to give money back to the owners.
The actual article is missing, but here is a tidbit on it:
http://www.andrewsstarspage.com/ADSPBlog/archives/archive_2006-w35.php