Week 6 - Peter Crosby "Escrow"
" Escrow " (n.) a legal concept describing a financial instrument whereby an asset or escrow money is held by a third party on behalf of two other parties that are in the process of completing a transaction "The NBA holds 10 percent of player salaries in an escrow account. That money is distributed to players at the end of the league year if player salaries fail to reach the collectively bargained percentage of revenue given to players." From NBA article I thought that this was a cool concept, shedding light on what actually is going on with professional athlete salaries and how the teams manage them. I thought it was interesting how the number we see is actually a fake number, and the real salary numbers for teams is determined by this concept.