escalator clause

Item III: The Big Ten’s new media rights contract, worth approximately $7.5 billion over seven years, includes an escalator clause — in the event of membership expansion — that pushes the total value to $10 billion.

One reason that temporary price increases turned into permanent wage increases in the middle of the 20th century is that many union contracts had escalator clauses that tied wage gains directly to inflation.

“Maybe the escalator clause concept gives everybody a little something to brag about,” Blunt said.

Players can also vote to implement an escalator clause to increase salaries by up to 5% each year — which provides bigger contracts for some but also increases the amount of escrow money withheld.

They can even trigger an “escalator clause” within the CBA allowing the cap threshold to be pushed up to 5% higher for any given season.