News about the potential solutions in place for a revamped NFL structure continues to trickle out. Part of that: a resolution to the months-long debate about the salary cap.
The NFL and NFLPA have agreed to some financial compromises. Next year’s salary cap will be no lower than $175MM, Tom Pelissero and Mike Garafolo of NFL.com report (Twitter link). Rather than borrowing money from projected future revenues through 2030 — as the players initially sought — this agreement will take from projected funds through 2024 to help guard against a salary cap freefall this COVID-19-altered season could cause, Mark Maske of the Washington Post tweets. Ownership previously hoped to only borrow against projected gains through 2021.
The NFLPA has voted unanimously to recommend this change to the CBA. Barring a down vote from the 32 union player reps later today, the parties have prevented a future in which the cap plummets considerably from its current $198.2MM perch.
Still, the cap coming in at $175MM, or even anywhere below $195MM, would represent the biggest drop in its 28-year history. The cap has steadily risen by approximately $10MM annually since 2014. Twelve of this year’s 14 franchise-tagged players did not sign long-term extensions. This could flood the 2021 free agency pool, with more cap-casualty cuts likely coming as well. Coupled with a cap reduction, this would create a buyer’s market next year. And the agreed-upon smoothing process will limit cap growth through 2024.
But the cap will not drop this year, as some owners sought. Owners dropped their request for an $8MM cap reduction this year, Pelissero tweets. However, the players gave in on another point that could affect 2020 earnings. Games must be played in order for players to receive money, Ian Rapoport of NFL.com tweets. The NFLPA, though, was able to secure a fund that will pay back players who lost guaranteed money, Chris Mortensen of ESPN.com reports (on Twitter). This will cover COVID-induced losses up to 2023. While particulars are unclear, Rapoport adds players who lose base salary money in 2020 will have it paid back next year (Twitter link).
My goodness, it’s a miracle. This sounds like a reasonable and well thought-out proposal. I’m pleasantly surprised given that it sounded as though the PA and ownership were basically bickering back and forth instead of actually compromising
Sounds reasonable but as usual the owners hold the trump card with the no games no pay clause.
I mean, you can’t expect to get paid if there’s no incoming revenue…
Why shouldn’t players expect to be paid if they have a guaranteed contract and are not responsible for there being no incoming revenue? Banks expect to be paid. Lease holders expect to be paid.
That’s the danger of being a business owner. You still need to pay your employees whether you make sales or not.