NFL proposes $40 million dollar cap reduction in 2020.

[TheGame316]

19 minutes ago, Forge said:

When faced with what I believe should be a similar problem, the NHL and players agreed to a flat cap with no increase for at least 3 years, and then cap increases based on seasons back dated a couple of years (thus using seasons impacted by Covid to keep a static cap limit even longer). The owners take it on the chin in the immediate present, however will likely recover this in the back end of these years while the players have a certain degree of stability out of the gate. 

The owners didn't really take it on the chin though because the cap is still subject to escrow. What was prevented with this was a drastic reduction in the cap number and there being no money for players entering free agency (and a lot of buyouts to make teams cap compliant)

The "Cap Ceiling" stayed fixed but the actual number is only going to be 85-90% of that number once the 10-15% escrow is calculated in at the end of each season

The NHL had been projecting an 88 Million dollar cap for 2021 and teams had been signing deals based on that. Pending Free Agents had been playing out their deals counting oin a big payday in July 1st (usual Free Agency day) They were faced with it dropping to something in the 60's short term which would have wrenched the system with escrows near 40%, no money for any Free Agents and a massive amount of "compliance buyouts"

The owners/players have a rock solid share of 50% of HRR (Hockey Related Revenue) in their CBA. This made it a no brainer deal that was good for both sides. Ambiguous language in the MLB/NFL CBA has made this more complicated (IE: NFLPA thinking if they play even 1 week that entitles them to full salaries even if the league is shut down due to 2nd wave)

Edited July 17, 2020 by TheGame316

[TheKillerNacho]

This doesn't make sense for everyone.

Like sure, I get that the league wants to reduce costs, fearing for lost profits in 2020 but teams can't be happy with being forced to cut star players who are part of their long term fans.

[Shanedorf]

58 minutes ago, TheGame316 said:

Cap is based mainly on projections

They project it each year and publish the ranges (EX:  "cap will be between $185-190M" ), but then they adjust it to reality once the numbers all come in. Happens every year in early March and then the league posts the exact numbers, in the case above it was settled at $188.2 for 2019 season

Teams are taking another hit on 2020 cap because the new CBA bumped up the vet/rookie minimums , so each team had to eat an extra $2 Million or so on existing deals depending on roster construction.

Edited July 17, 2020 by Shanedorf

[ramssuperbowl99]

15 minutes ago, TheGame316 said:

Ambiguous language in the MLB

Because the MLB players aren't payed by revenue, it's a total expense thing. The MLB owners have therefore started sheltering MLB-related profits in other entities and are arguing that the players don't deserve any of it. 

For example, the Cubs are starting their own network instead of re-upping with WGN. So where historically the Cubs got as much money as they can out of WGN, disclosed that revenue to the players and negotiate for that pie accordingly, now the MLB Cubs are negotiating their TV contact with the TV Cubs, and they negotiate it at a well below market rate, let the TV station make tons of money, and not share any of that with the players because it's "separate". (Even though the revneue is obviously generated by the players since they're the product the station is making money over.) The Cardinals are doing the same thing with a restaurant/downtown complex near the stadium, and pretty much every team has these side business ventures. 

 

Thankfully, the NFL doesn't have any of these problems because they have transparent revenue streams and a CBA that slices the pie accordingly.

[BobbyPhil1781]

Didn't expect to read this one today...... this should be fun if it happens.

[TheGame316]

7 minutes ago, ramssuperbowl99 said:

Because the MLB players aren't payed by revenue, it's a total expense thing. The MLB owners have therefore started sheltering MLB-related profits in other entities and are arguing that the players don't deserve any of it. 

For example, the Cubs are starting their own network instead of re-upping with WGN. So where historically the Cubs got as much money as they can out of WGN, disclosed that revenue to the players and negotiate for that pie accordingly, now the MLB Cubs are negotiating their TV contact with the TV Cubs, and they negotiate it at a well below market rate, let the TV station make tons of money, and not share any of that with the players because it's "separate". (Even though the revneue is obviously generated by the players since they're the product the station is making money over.) The Cardinals are doing the same thing with a restaurant/downtown complex near the stadium, and pretty much every team has these side business ventures. 

 

Thankfully, the NFL doesn't have any of these problems because they have transparent revenue streams and a CBA that slices the pie accordingly.

Yes, but the crux in the MLB negotiation was the owners had the right to just cancel the season and the players wouldn't see a dime. The players, once again, felt that if they played even 1 game they would have legal right to their full salary (something the MLB owners were not going to risk)

Owners also knew that with no fans, there are only so many games that will get eyes on TV, where all the revenue comes from that's why they wanted only 48 games (and expanded playoffs), and not 70/80/90. Probably similar revenues, but that would have got players more of their salaries with no tangible benefit to owners

So, both sides played chicken until they agreed to play 60 games and hopefully salvage the sport in 2021 and beyond vs losing an entire year over money and souring fans

Edited July 17, 2020 by TheGame316

[ramssuperbowl99]

Just now, TheGame316 said:

Yes, but the crux in the MLB negotiation was the owners had the right to just cancel the season and the players wouldn't see a dime. The players, once again, felt that if they played even 1 game they would have legal right to their full salary (something the MLB owners were not going to risk)

This isn't true. Blake Snell said that, but the MLBPA signed off on pro-rated salaries in March as apart of the original agreement. They didn't take a paycut beyond that pro-rated salary.

 

While there may be some minor hurdles, NFL players would be smart to accept a pro-rated structure on everything if the season doesn't happen. Otherwise, navigating how to divide up a signing bonus versus a roster bonus versus a game check, both in salary cap and real cash flow dollars, is going to be a nightmare.

[N4L]

I have a very easy solution for the NFL to this whole problem. Stick with me here:

College football isnt going to happen this year. There are too many challenges associated with larger rosters, liability for universities, and a lack of a clear, unified governing body. 

That means saturdays sporting schedule is wide open. The NFL could EASILY move games to Saturdays in the 10am pst, 1pm, and 5:30 time slots, then have the same thing on Sunday. 6 "primetime" games per weekend, plus MNF, when people are stuck at home during the winter. That should EASILY make up the lost revenue to the point we dont need to have any salary cuts this year and ****, the cap might even still go up next year. 

[Forge]

1 hour ago, TheGame316 said:

The owners didn't really take it on the chin though because the cap is still subject to escrow. What was prevented with this was a drastic reduction in the cap number and there being no money for players entering free agency (and a lot of buyouts to make teams cap compliant)

The "Cap Ceiling" stayed fixed but the actual number is only going to be 85-90% of that number once the 10-15% escrow is calculated in at the end of each season

The NHL had been projecting an 88 Million dollar cap for 2021 and teams had been signing deals based on that. Pending Free Agents had been playing out their deals counting oin a big payday in July 1st (usual Free Agency day) They were faced with it dropping to something in the 60's short term which would have wrenched the system with escrows near 40%, no money for any Free Agents and a massive amount of "compliance buyouts"

The owners/players have a rock solid share of 50% of HRR (Hockey Related Revenue) in their CBA. This made it a no brainer deal that was good for both sides. Ambiguous language in the MLB/NFL CBA has made this more complicated (IE: NFLPA thinking if they play even 1 week that entitles them to full salaries even if the league is shut down due to 2nd wave)

Good info / clarification

[Dome]

2 hours ago, ramssuperbowl99 said:

Or they negotiate to spread the decreased revenue over the next few years so it's a $10M/year hit over 4 years instead of a $40MM hit now

Maybe the $40m in Year 1 is the decreased revenue spread out over multiple years. 

Edited July 17, 2020 by Dome

[dll2000]

18 minutes ago, N4L said:

I have a very easy solution for the NFL to this whole problem. Stick with me here:

College football isnt going to happen this year. There are too many challenges associated with larger rosters, liability for universities, and a lack of a clear, unified governing body. 

That means saturdays sporting schedule is wide open. The NFL could EASILY move games to Saturdays in the 10am pst, 1pm, and 5:30 time slots, then have the same thing on Sunday. 6 "primetime" games per weekend, plus MNF, when people are stuck at home during the winter. That should EASILY make up the lost revenue to the point we dont need to have any salary cuts this year and ****, the cap might even still go up next year. 

This is actually a good idea.  I don't think it is a done deal college football isn't going yet though.

 

[ramssuperbowl99]

24 minutes ago, N4L said:

I have a very easy solution for the NFL to this whole problem. Stick with me here:

College football isnt going to happen this year. There are too many challenges associated with larger rosters, liability for universities, and a lack of a clear, unified governing body. 

That means saturdays sporting schedule is wide open. The NFL could EASILY move games to Saturdays in the 10am pst, 1pm, and 5:30 time slots, then have the same thing on Sunday. 6 "primetime" games per weekend, plus MNF, when people are stuck at home during the winter. That should EASILY make up the lost revenue to the point we dont need to have any salary cuts this year and ****, the cap might even still go up next year. 

Run for President. You might win as a write in.

[dll2000]

29 minutes ago, N4L said:

I have a very easy solution for the NFL to this whole problem. Stick with me here:

College football isnt going to happen this year. There are too many challenges associated with larger rosters, liability for universities, and a lack of a clear, unified governing body. 

That means saturdays sporting schedule is wide open. The NFL could EASILY move games to Saturdays in the 10am pst, 1pm, and 5:30 time slots, then have the same thing on Sunday. 6 "primetime" games per weekend, plus MNF, when people are stuck at home during the winter. That should EASILY make up the lost revenue to the point we dont need to have any salary cuts this year and ****, the cap might even still go up next year. 

All those TV deals for Sat. would have to be renegotiated on the fly.   Should be doable though.  Nice outside the box thinking.  

 

[dll2000]

Just now, dll2000 said:

All those TV deals for Sat. would have to be renegotiated on the fly.   Should be doable though.  Nice outside the box thinking.  

 

You still have problem of 50 states with 50 different covid policies each of which are subject to change on a whim.

 

 

[swede700]

53 minutes ago, dll2000 said:

This is actually a good idea.  I don't think it is a done deal college football isn't going yet though.

 

The Power 5 isn't going to cancel an entire season, because of the TV deals and the even greater impact that it would play on the non-revenue sports at their universities, which have already been hit hard.