Matthew Tkachuk will surprisingly earn a small annual salary
Upon his arrival with the Florida Panthers, forward Matthew Tkachuk signed an eight-season, long-term deal that will pay him $9.5 million per year.
Actually, that's where it's wrong. On the payroll, his salary will average $9.5 million.
According to Elliotte Friedman, Tkachuk's salary will be $1 million per year.
The rest of the contract, $68 million, will be distributed as a bonus. This strategy will result in Tkachuk paying a small amount in escrow.
What is the escrow? It is withholding a certain percentage of money from players' paychecks and holding it (in escrow) until the league knows the total revenue for the year. The players will then receive all or part of the deposit at the end of the year, depending on the actual revenues of the NHL.
So by having a smaller salary, it will make Tkachuk a winner in the end.
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