The salary cap might matter for once

[Gandhi]

In any normal year the salary cap does not mean anything. First of all, it increases heavily each year, and second, it is easy to manipulate it. Teams cannot ignore it, but you don’t have to think about it either.

This year though, it might be different. The reason is that the salary cap is made up by revenue across the league, and if there is no season, each team will lose millions, and thus make the revenue average smaller. It is expected that if all games are played without spectators, each team will on average lose 100 million. On top of that there is the pending negotiations for new TV deals, and no one knows how the situation will affect those. It can go either way. The expectation, though, is that the cost of the rights will go up a lot. Both aspects can affect the salary cap heavily.

Some speculate that this years salary cap could be a so-called hard cap, which would mean the rise next year will be small. That would most likely make the teams hesitant to hand out big contracts, and it could – at least in theory – make the players demand shorter contracts with the hope of reaching the free market at the time where the salary cap is supposed to rise mightily again.

We are obviously on completely unknown territory, and for once it might result in any salary cap speculation is relevant this year.

 

[az jam]

Agree that we are in unknown territory for sure. The NFL players union and NFL owners are going to have to work this out for the 2021 season. The current NFL contract agreement will be meaningless.

 

[slanidrac16]

No fans in the stands will actually push tv ratings through the roof.

 

[Zeno]

Something to monitor: The salary cap in 2021 could potentially take a massive hit due to COVID-19. "The various estimates I've gotten from executives to owners is that the cap could be down anywhere $30M to $80M in 2021" — @AdamSchefter

https://www.msn.com/en-us/sports/nf...mplications-of-altered-nfl-season/ar-BB132oYC

 

[RugbyMuffin]

Cool topic.

It brings up two very interesting topics that this COVID situation brings up in the NFL and in general.

1. Will the NFL, post-draft via internet, realize it is time to stream games? I have been trying to take what I see on the internet and put it on my TV without issue for almost 15 years. I have had some CRAZY setups that worked for a bit but were so hard to setup. Now with "Casting" your mobile device to the TV? Pfffftt. It is over. IT IS OVER! There is no reason for TV outside of it being a habit, and sports. Yet, the NFL loses MILLIONS, yes MILLIONS, by not streaming. It will be very interesting to see how that will work.

2. The drop in the salary cap means youth will be served. If you are over 30 and expensive, you are gone. Not only that.....who picks you up? What other team takes that on when all salary caps are reduced ? Youth will be served like it has never been before, it will only hasten the push to the spread offense "college" game (which will be the NFL game now, too).

 

[Dr. Jones]

No fans in the stands will actually push tv ratings through the roof.

The deals for this seasons advertising costs were struck long ago though.

 

[AZman5103]

Its important to remember in the NFL "loosing 100m" because no fans are in the stands still means they are making hundreds of millions of dollars. Its not like other sports where the team will actually take a loss.

My guess is that the NFL has plenty of plans in place to recoup any losses from fanless games. Hell, if they decide to play some games on Saturday this year, that TV deal alone will make up the difference 5X.

 

[WisconsinCard]

I don't think there is any extra revenue for Saturday games. I mean the networks have already paid for those games. It's not like they're creating new games.

 

[Cardiac]

I don't think there is any extra revenue for Saturday games. I mean the networks have already paid for those games. It's not like they're creating new games.

If I'm Godell I'm telling the networks that the NFL is filling a major hole in their line up since college games generate a good amount of viewership and the NFL on Saturday will be a huge hit. To me it's like more prime time games which do have a higher value.

 

[Cardiac]

In any normal year the salary cap does not mean anything. First of all, it increases heavily each year, and second, it is easy to manipulate it. Teams cannot ignore it, but you don’t have to think about it either.

I understand your point that the CAP is easily manipulated and teams often create CAP room when needed. But is does mean something, just ask the Rams who had to let talent walk this year.

The expression CAP hell exists for a reason. You state that they can't ignore it so ergo it does mean something.

 

[Rain Man]

I tried to read it but I saw it was too long.

 

[Gandhi]

I understand your point that the CAP is easily manipulated and teams often create CAP room when needed. But is does mean something, just ask the Rams who had to let talent walk this year.

The expression CAP hell exists for a reason. You state that they can't ignore it so ergo it does mean something.

Yes, I hoped it was clear that I meant that it does not mean anything to us as fans.

Getting into cap hell is basically a decision, but a decision the player obviously has to agree to. For example, a signing bonus has to be accounted for in the contract, and because they have gotten so big and expensive, they can affect the cap a big amount if the player choose to. Then there is the contract restructure which the player also has to agree to, plus that they includes a signing bonus. So there are certainly elements to take into account, but not for fans. The Cards could sign the five best remaining free agents, and the fans still do not have to worry about the money.

Thus, a bad cap situation might also be a matter of not doing the cap manipulation well enough, and to a degree it is about playing it safe.

Oh, and the term cap hell exists in the media, but I don’t know if it necessarily exists inside the team. The media continue to use various expired terms, which I would guess is to maintain the chance for a high level of content, and maybe also to keep their news easy to both report on and understand.

 

[Cardsfaninlouky]

Let's just hope it doesn't get to that point? Maybe the NFL starts out letting around 15,000 fans in the stadiums, the virus numbers keep declining & eventually it's back to normal? Being the richest sport in the U.S I'm sure the NFL will have plan A, plan B & C, if not D & E lol? Fans will watch their teams even if they can't go. The money situation will get figured out imo, one way or another. I'm just being very optimistic because I want football back. No football in the fall will cause me to drink more beer out of sadness so maybe the NFL can borrow money from Anheiser Busch lol?

 

[SissyBoyFloyd]

I don't care how much space one has for his caps, can't stand it when they wear their caps backwards.

 

[Gandhi]

Let's just hope it doesn't get to that point? Maybe the NFL starts out letting around 15,000 fans in the stadiums, the virus numbers keep declining & eventually it's back to normal? Being the richest sport in the U.S I'm sure the NFL will have plan A, plan B & C, if not D & E lol? Fans will watch their teams even if they can't go. The money situation will get figured out imo, one way or another. I'm just being very optimistic because I want football back. No football in the fall will cause me to drink more beer out of sadness so maybe the NFL can borrow money from Anheiser Busch lol?

I don’t doubt that you are right, CFL! There is almost no doubt in my mind there are multiple plans prepared for this.

 

[Jetstream Green]

No fans in the stands will actually push tv ratings through the roof.

Just like the draft broke viewing records, if they manage to play the games even without a crowd the ratings will probably be bigger than any season since because that part of our lives as crazy American football fans will have value in these hectic times... so you lose 65 thousand seating but gain TV viewers which far eclipse that except that the individual revenue for luxury boxes and parking will not be an exclusive revenue for individual franchises if I am correct

 

[Gandhi]

https://www.nfl.com/news/important-salary-cap-negotiations-loom-for-nfl-nflpa

 

[Gandhi]

https://www.msn.com/en-us/sports/wa...dollar40-million-per-team-in-2020/vp-BB14ZVcx

This can get really problematic. Thank God for Kyler Murray on a rookie deal.

 

[Solar7]

https://www.msn.com/en-us/sports/wa...dollar40-million-per-team-in-2020/vp-BB14ZVcx

This can get really problematic. Thank God for Kyler Murray on a rookie deal.

The way this is done defeats the purpose of a cap, in my opinion. The cap should exist to manage competitiveness and nothing more. Connecting it to revenue makes no sense, and it should never decrease. This kind of drop is going to cost lots of guys their jobs, and make the product less interesting to watch.

 

[daves]

Seems to me the players and owners could agree to smooth out the dip - artificially boost the cap to at least 2020 levels in 2021 (borrowing the money), then reducing the cap slightly over the next several years to make up for it (pay it back). Teams, and the league, won't want so much disruption in rosters because of a one-year hiccup, and the players union won't want higher priced guys to get cut in 2021, take much smaller deals, and hope to get back to where they were in 2022+... when many of them will be replaced by rookies. It's just too disruptive and it could easily be avoided if the players and owners can come to an agreement rather than being locked into the CBA they just signed.

...dave

 

[Ronin]

Tom Pelissero
⁦‪@TomPelissero‬⁩

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NFLPA executive director DeMaurice Smith said on a call today with agents that the union has had preliminary calls with the NFL on projections for the 2021 salary cap and it’s safe to say a season without fans would have at least a $3 billion impact on revenue.

 

[Ronin]

Tom Pelissero
⁦‪@TomPelissero‬⁩

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The collective bargaining states the NFL and NFLPA must bargain in good faith if there’s a significant revenue shortfall. Bargaining hasn’t started, per Smith. (Reminder: It’s an 11-year CBA, so there are ways to spread out any hit and ensure the cap doesn’t take a one-year dip.)

 

[Ronin]

Tony Pauline
⁦‪@TonyPauline‬⁩

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The NFLPA are preparing agents there is a real chance the 2021 salary cap could be a lot lower than expectrd. I explain the circumstances from today's call.