Report: Escrow set at 16 percent

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Hey, remember in June when the NHLPA voted to keep the five-percent growth factor in spite of increasing worries about escrow?

Well, here’s why that decision was a significant one, via TSN’s Frank Seravalli:

With early revenue projections in place, the NHL and NHLPA set the escrow withholding rate for players at 16 per cent for the first quarter of the season on Thursday.

That means every player will have 16 per cent of earnings deducted from their paycheque and put aside until after all of this season’s hockey-related revenue is counted to ensure a perfect 50-50 revenue split with owners.

Now, this doesn’t mean that the players will definitely lose 16 percent of their salaries. Typically, they receive refunds when all the accounting is done.

Still, 16 percent is a good-sized chunk to withhold. They won’t be thrilled about it.

Related: To understand escrow, consider Duncan Keith