I heard Chris Canty say today that if a player gets a contract with guaranteed money, the team has to put that money in an escrow account so its available. Has anyone else ever heard this?

I don't know if it's a specialized account for each player or just a general fund that covers everyone on the roster. So if you sign Jackson and there is 160M guaranteed, the team has to put 160M in an account that day. He said that is a big reason why some teams are skittish. Lots of money to set aside at one time..

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Posted by SpartyGator

Detroit Lions fan

Member since Oct 2011

75681 posts

Posted on 3/15/23 at 2:45 pm to brmark70816

Looks like Cowboys moving on from Zeke LINK

quote:
FRISCO, Texas - The Dallas Cowboys will release Ezekiel Elliott, making the running back a free agent, a source told ESPN's Adam Schefter.

Elliott was set to count $16.7 million against the salary cap with a $10.9 million non-guaranteed base salary. Elliott will be designated a post-June 1 cut, per sources, which means the club will save nearly $11 million against the 2023 cap, but he will count $4.9 million against the 2024 cap. They will not get the cap credit until June 1.

This post was edited on 3/15/23 at 2:47 pm

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Posted by wildtigercat93

Member since Jul 2011

112467 posts

Posted on 3/15/23 at 2:56 pm to brmark70816

quote:
heard Chris Canty say today that if a player gets a contract with guaranteed money, the team has to put that money in an escrow account so its available. Has anyone else ever heard this?

Yeah, a lot of this was talked about when the raiders were trading Khalil Mack and there were reports that Davis either didn’t want to or didn’t have the ability to put the GTD money in escrow due to being one of the more cash poor owners at the time

quote:
don't know if it's a specialized account for each player or just a general fund that covers everyone on the roster. So if you sign Jackson and there is 160M guaranteed, the team has to put 160M in an account that day. He said that is a big reason why some teams are skittish. Lots of money to set aside at one time..

Every team makes something like 350 mil before ever selling a ticket, concession, merch, or playing a game. There is no actual concern by the owners, it’s just an excuse to not guarentee the money.

Only reason it was ever a thing was to make sure the league had the money to cover player salaries, now that it’s a multibillion dollar corporation, that’s not really much of a concern anymore; the league isn’t going belly up out of nowhere

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Posted by Ghost of Colby

Alberta, overlooking B.C.

Member since Jan 2009

11478 posts

Posted on 3/15/23 at 4:49 pm to brmark70816

The escrow account is a rolling one year requirement. All guaranteed money a team owes each season has to be put into an escrow account.

For instance:
The Browns don’t have to stash Deshaun Watson’s $230 million guaranteed money into an account for 5 years. However, they do have to put whatever he’s owed in 2023 into an account right now, plus any all other guaranteed money they owe for the other players on their roster.

*And that requirement does occasionally cause problems for family owned teams without other sources of income such as the Chargers, Cardinals, and Raiders.

This post was edited on 3/15/23 at 4:51 pm

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