Blog Entry

NBA players to receive $160 M in escrow cash

Posted on: July 12, 2011 5:35 pm
Edited on: July 12, 2011 7:22 pm
 
NBA players will reportedly receive $160 million in escrow money this summer. Posted by Ben Golliver. lockout

Just because the NBA has locked them out doesn't mean that the league's players can't get paid.

NBA.com reports that the players are in store for a nice mid-summer cash infusion of $160 million, as funds that are held in escrow will be returned. 
The escrow funds -- representing eight percent of each NBA player's salary -- are held back each season to ensure that the players' share of basketball-related income does not exceed the contractually agreed-upon percentage, currently 57 percent. This year, for the first time since the system was introduced in the collective bargaining agreement that came out of the 1998-99 lockout, the cut to players will fall short, sources with the NBA and the National Basketball Players Association confirmed.

That cash could ease or delay the point at which some players begin to feel financial hardship from the lockout. Based on the "average" NBA salary of $5.7 million, the escrow rebate would be worth $456,000. A minimum-salaried player ($473,604) would be due $37,888 while a $16 million superstar could expect $1.28 million coming back.

Ca-ching. 

Certainly, this doesn't help the ongoing negotiations. The owners are driving the wholesale changes while the players are essentially cool with the current setup; A transfer of money from owners to players doesn't impact the philosophical stances of either side. It does give the players a bit of breathing room, but 8% of one's salary is not a game-changing amount. It's certainly not enough to carry financially irresponsible players through a canceled season, for example.

But, as NBA.com notes, this could be a bit of a pressure reliever, and it comes at an inopportune time for fans and observers who want to see progress towrds a deal. A resolution won't be reached unless the two sides are exchanging proposals and finding avenues for compromise. Anything, even a cash infusion like this one, that impacts either side's desire to negotiate and compromise pushes back the timeline for a resolution. Guess what? There are no negotiating meetings scheduled between NBA owners and players right now.

Enjoy this pay day, players, you completely earned it. But please find a way to turn this into an opportunity to demonstrate your seriousness and urgency to continue to work towards finding a resolution.
Category: NBA
Comments

Since: Mar 13, 2007
Posted on: July 16, 2011 4:24 pm
 

NBA players to receive $160 M in escrow cash


This is the worst recession every in the history of the United States
now i know this thread is off its rocker....anyone heard of the great depression....


now if we dont raise the debt cealing and our entire country (which is founded on credit) goes in tanker

then feel free to use this statement as the country will literally collapse on itself


but none of that has happened yet and i doubt any politician is smart enough to realize that that wont be allowed to happen.



Since: Dec 31, 2006
Posted on: July 13, 2011 4:31 pm
 

NBA players to receive $160 M in escrow cash

 the Unions that were a big part in building this country can't even give a dollar for the workers that get injured or our out of work, no matter how long they payed their union dues and busted their arss. 
Ironic isnt it that these same unions are now a big part of the destruction of our country.



Since: Dec 31, 2006
Posted on: July 13, 2011 4:26 pm
 

NBA players to receive $160 M in escrow cash

Just because you hear news stories of the few players who ridiculously go bankrupt despite getting huge salaries, doesn't mean that all the players don't know how to save their money. Most of them have agents who hire financial planners for their clients. I'm sure most NBA players are set to withstand the loss of the season too, escrow or no. 
I think ESPN the mag published a story that around 80% were bankrupt after being 4 years out of the league.  2 in 10 get it. Lets face it the rest are freaking financially lost.  If you have to have your agent hire a financial planner, I promise you will be bankrupt in no time.  In money, YOU are the ONLY person who has your best interest at heart.  If you are not smart enough to handle your own money or at least find your own planner then I dont support any plan that gives you a greater slice of the pie that I as a fan am financing.



Since: Dec 31, 2006
Posted on: July 13, 2011 4:19 pm
 

NBA players to receive $160 M in escrow cash

As the old saying goes, "you spend what you make."  That saying holds true not only for the players but for the owners as well.  Who wants that fifth house in Ensenada forclosed on?  The sheer greed from the owners will return them to the bargaining table with a legitimate offer because greed out-weighs the hatred and contempt they hold for their employees.



What a load of crap!!!

Are the owners spoiled rich and overindulged???   Yes.  Are they more overindulged and rich than the players?????   Yes.  But most are quite affable and well liked by they players.  I think you would be hard pressed to find any owner in any sport who truly hates and holds thier employees in contempt.  There is a reason they are more rich and more indulged than the players.... they are smarter, and know how to handle finances better.  I like the NBA.  I like most players, and I think it is a fantastically entertaining sport.  If I have a choice where my money goes to benefit the overall health of the league, I pick the owners every time.  If the players keep more money then the higher the likelyhood that my investment in the league will be snorted, smoked, or squandered by a bankrupt former player than if I give it to a more proven (at least economically) individual.  I doubt there are any owners looking a forclosure on a fifth house in ensenada....... why... because they didnt overpay for the house and therefore can sell at a profit, unlike these athletes who pay top dollar for nonsense only to sell it for a loss three years later.



Since: Aug 19, 2006
Posted on: July 13, 2011 2:53 pm
 

NBA players to receive $160 M in escrow cash

As the old saying goes, "you spend what you make."  That saying holds true not only for the players but for the owners as well.  Who wants that fifth house in Ensenada forclosed on?  The sheer greed from the owners will return them to the bargaining table with a legitimate offer because greed out-weighs the hatred and contempt they hold for their employees.



Since: Mar 22, 2008
Posted on: July 13, 2011 11:29 am
 

NBA players to receive $160 M in escrow cash

Yes I do feel sorry for the owners. They put forth the money to buy the team. They handle all the expenses of the season. They worry about whether they can field a good enough team to put fans in the seats. Players, they practice a couple nights a week and they play a game. Most players average less than 20 minutes a game at that. Add up all their practice time and their little bit of game time. Wouldn't we all like to work that little. 22 teams lost money. That is not a 25 million dollar profit when a 40 million dollar profit was hoped for. Basic math, a loss means a negative number not a less positive number. So now they can sit around doing nothing for a year making more than most people make in five years. Does all this seem like we should be pitying the players who can't work? Not me.



Since: Feb 15, 2008
Posted on: July 13, 2011 7:29 am
 

NBA players to receive $160 M in escrow cash

Does anyone really feel sorry for anyone that makes the minimum of $500,000.00 plus a year, plus benefits most the ordinary person doesn't get and can't make it one year without working?  Seriously, that minimum pay might represent maybe 1 to 3 players on a team and the rest easily make over a million dollars and most make an insane amount compared to the stats they put up.  I really can't believe that some of these players are going to get help from the union for being out of work when they make that kind of money?  


Does anyone feel sorry for a billionaire owner who was hoping to turn a $40 million profit but was only able to turn $25 million and is now crying that they're "losing money"?



Since: Jul 27, 2007
Posted on: July 12, 2011 11:56 pm
 

NBA players to receive $160 M in escrow cash

actually the reason for the lockout is that the owners (or the people the owners hired (GMs) spent their money poorly on player contracts, and so some of the owners are losing money. New Orleans went bankrupt-ish, Sacramento's owners are broke... the reason the owners may win is because the haves can easily withstand the loss of a season, and the have-nots were losing money to begin with (and so the lockout may save them money (depending on how much of their expenses were fixed of course)).  Just because you hear news stories of the few players who ridiculously go bankrupt despite getting huge salaries, doesn't mean that all the players don't know how to save their money. Most of them have agents who hire financial planners for their clients. I'm sure most NBA players are set to withstand the loss of the season too, escrow or no. 



Since: Jun 25, 2009
Posted on: July 12, 2011 10:46 pm
 

NBA players to receive $160 M in escrow cash

$160 mil will carry them a year or two and pay some of their bills--the owners will cave in before that and come back to the table with a much better offer.

BAAAAAAAAHAAAAAAAAAAAAAAAA !!  Whewwwwwww !!  Thanks for the laugh !!!   Really?  A paycheck for eight percent of a player's salary will carry them for year or two?   How about a month or two?  Now that's more like it fella.  I don't know what world you live in but I can't make it on 8 percent on my salary.  Don't try and argue their 8 percent is so much more then mine because a percentage is exactly that, a percentage.  These players don't live like you and I do... they don't survive on 40 or 50 or 100 thousand dollars per year.  They survive on 500 thousand, 1 million, 5 million, 10 million and even 20 million per season.  And they spend..... they spend a lot.   But once again, thanks for the laugh.. I needed that. 



Since: Jun 20, 2010
Posted on: July 12, 2011 10:02 pm
 

NBA players to receive $160 M in escrow cash

Does anyone really feel sorry for anyone that makes the minimum of $500,000.00 plus a year, plus benefits most the ordinary person doesn't get and can't make it one year without working?  Seriously, that minimum pay might represent maybe 1 to 3 players on a team and the rest easily make over a million dollars and most make an insane amount compared to the stats they put up.  I really can't believe that some of these players are going to get help from the union for being out of work when they make that kind of money?  

This is the worst recession every in the history of the United States and the Unions that were a big part in building this country can't even give a dollar for the workers that get injured or our out of work, no matter how long they payed their union dues and busted their arss.  I could live the rest of my life very comfortably and happy with just one year of making $500,000.00, so why can't these guys who have made way more than that.  These guys have known for at least a year that this was coming, yet some of these guys are acting like it's coming at a surprise, it's just pathetic that these guys call themselves professionals.  I can't help but think that maybe if most of these guys wouldn't have spent all theire mon
ey on cars, jewelry, and tattoos, they might have some money to put aside.  Then again, if you want to be a professional athlete, you gots to keep up your rep and not look like you has nothing when your out in public.    &nbs
p; Yano imsaying!    


The views expressed in this blog are solely those of the author and do not reflect the views of CBS Sports or CBSSports.com