Under the provisions of the collective bargaining agreement between the NHL and the NHLPA, a player’s cap hit and the salary they are paid can be two very distinct values in any given year. But even when you understand those differences, how much do NHL player actually take home?

Players’ actual earnings are diminished by a number of factors including escrow, agent fees, and taxes. Agent fees can range from 2-6% depending on representation agreements and services rendered. Tax rates vary throughout the NHL depending on the country, state, and city a team and player reside and play in. But of all the deductions from their income, escrow might be considered the greatest annoyance, as it’s a mechanism to ensure that the owners collect a greater share of hockey-related revenues (HRR) than they have in previous collective bargaining agreements (CBA).

So what is escrow, how much does it actually deplete a player’s salary, and why has it contributed to the tensions between players and owners?

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There has been quite a lot of talk over the last couple of days about how unhappy NHL players are with the escrow hit they take on every paycheque.

Unfortunately, when you have a collective bargaining agreement that specifies how hockey related revenues are to be split between owners and players, an escrow account is a necessary evil. Because the players’ share is paid out under the provisions of 700 or so individual player contracts throughout the season, there needs to be a mechanism to reconcile those payments with the total share following completion of the season, when all hockey related revenues have been accounted for.

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