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Friday, May 27, 2011
Escrow
Great job by Mike in explaining how the escrow account can be leveraged.
The solution is to better tie a player’s future talent level to his salary. We are so used to having a fixed payout (like a mortgage), with a player earning say 5MM$ a year for the next 10 years. But if the player is 32 years old, you know that he’ll earn a disproportionate amount of that 50MM$ due in the early years.
So, I would suggest that player contract payouts follow a player’s age. For the sake of discussion, let’s say that you have this as the earnings scale:
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