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NFLPA disputes claims that salaries are and will remain flat

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Several weeks ago, a variety of remarks emerged from influential NFL owners, like Pats owner Robert Kraft, regarding the future of the salary cap under the new CBA.  And it painted a not-so-pretty picture for players who are under the impression that it will continue to increase — and that it will spike significantly when the new TV deals kick in.

The talk culminated in NFLPA president Domonique Foxworth vowing to “crunch all the numbers.”  All the numbers apparently have been crunched.

The NFLPA has taken the message directly to the players via a two-page document entitled “The Economic Truth About The New NFL CBA.”

The first page begins with an all-caps message that “contrary to recent statements by some NFL owners, the claim that player salaries are flat or are going to remain flat under the CBA are wrong.”

Following that are four bullet points, although the fourth one is an exact duplicate of the third:

1. “The amount of cash spent on players in salaries an benefits under the new CBA has gone up to nearly 55 percent of All Revenue in 2011. This is a higher percentage of All Revenue spent on players in cash than in any year under the 2006 CBA.”

2. “Players were paid more than $160 million per team in cash and benefits in 2011, which is well above the $142.2 million in cap plus benefits in 2011, i.e., a lot of cash over cap.”

3. “Equally significant, because of the increase in signing bonuses in rookie guarantees, the amount of player salaries guaranteed in 2011 increased from about 50% in 2010 to about 57% in 2011. This is the highest percentage of guaranteed compensation the NFL players have ever had.”

The second page contains two paragraphs: “The reason for this large increase in cash spending on players is that the new CBA emphasizes and requires cash spending by teams, as opposed to just salary cap dollars. It also removes the mechanism in the old CBA to lower the salary cap when teams spend too much cash above the salary cap. The result is that the new CBA delivers a higher percentage of revenues to players in cash than the old CBA and salaries have gone up — not remained flat — under the new CBA.”

And: “The 47% player share referred to by the owners and others is in cap dollars — which is an accounting mechanism. In real cash dollars, which go into the players’ pockets, the new CBA has so far provided a higher percentage of revenue, a greater percentage of guaranteed money, and more actual dollars, than in any year of the 2006 CBA.”

Here’s our objective assessment of the two-page document:

1.  Ultimately, there’s no difference between salary cap dollars and real dollars.  Every dollar paid to a player eventually hits the salary cap.  The fact that, collectively, the teams spent over the cap by more than 10 percent per club in 2011 means that, eventually, that excess will be reflected by decreased spending, since fewer cap dollars will be available as the cash-over-cap hits the cap.

2.  The two-page document says nothing about future cap growth.  And therefore it does nothing to refute the contention by multiple owners, like Robert Kraft, that the salary cap will grow only slowly over the next several years.

3.  The increased use of guaranteed salaries is significant, but in many cases the salaries being guaranteed are salaries that were going to be paid anyway.  For example, when a player receives an eight-figure signing bonus and fully-guaranteed first-year base salary, there’s no reason to guarantee the first-year salary because it’s going to be paid with or without a guarantee.  And for the first-rounders who now receive three or four years of fully-guaranteed compensation — under a much more limited compensation formula — the chances of any of those players being cut within the first three or four seasons already were slim, to say the least.

4.  The best news for players, which isn’t mentioned in the document, is that as of 2013 each team must spend in cash 89 percent of the unadjusted salary cap.  This means, of course, that there was and is no spending minimum per team in 2011 and 2012.

5.  The document also omits reference to or explanation of the union’s decision to agree to remove $46 million in total cap dollars from two teams that like to spend money (the Cowboys and Redskins) and redistribute it to teams that may or may not spend it.

Here’s the bottom line as to, well, the bottom line.  Both sides should feel good about getting a deal done that creates an atmosphere (at least financially) or a true partnership.  And the NFL should refrain from saying or doing anything to suggest that the deal isn’t as good as the players think it is.  The league should want the players to be happy with the deal, and the players should want the league to be happy with the deal.  That’s how a true partnership is supposed to work, and that attitude will help avoid having the NFL slip into lockout or strike status come 2021.

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15 Responses to “NFLPA disputes claims that salaries are and will remain flat”
  1. paulsmith107 says: May 18, 2012 10:40 AM

    The players union really negotiated a good one here lol. I wonder what teams they will have to agree to f over next year seeing is how that’s the only way the caP money will go up. They should have taken pointers from mlbpa on how to get what you want.

  2. dasportsninja says: May 18, 2012 10:40 AM

    As a conract author for 22 years, I can tell you, without hesitation, the new CBA favors ownership in comparrison to the former CBA. Look at the bottom line, it tell sthe entire story. The vast majority of NFL owners will make MORE money now then they did before, with only a handful of owners losing.

  3. bozosforall says: May 18, 2012 10:54 AM

    They can thank scumbag owners like Robert Kraft for that.

  4. feck12a says: May 18, 2012 11:05 AM

    Its fact that the cap was going DOWN untill the bogus skins/boys penalty for a 2 year old “crime” was handed out. What will happen when that ruling gets reversed? cap was going to be 113 million-ish per team for the 2012 season before those penalties. I can see many players (union members) losing there jobs when these teams have to make sudden cuts to meet the soon to be lower cap number. But hey Demaurice Smith got his contract extended thats all that really matters here isn’t it?

  5. gweez76 says: May 18, 2012 11:11 AM

    It’s not flat it’s horizontal.

    Your reps sold you down the river when they removed two of the highest paying and most creative teams from spending in Free Agency. Skins and Boys often set the market and skew the “going rate” upwards.

    They did this so the appearance of an increased cap would fool you, the Players. Hope you enjoy being treated like fools by the people you pay to protect you from the owners.

  6. erod22 says: May 18, 2012 11:13 AM

    Yo, players, this is what happens when you hire homie, instead of a real attorney, to represent you.

    They played Demaurice Smith like a child.

  7. Lonely Libertarian says: May 18, 2012 11:24 AM

    Hmmmm…

    Do I care about the total salary plus benefits number if I am a healthy 24 year old player – or the salary number by itself…

    The cost of benefits for the players for the next few years will likely eat up any potential cap increase – insurance companies do not like losing money. So benefit costs are going to skyrocket thanks to the greedy asbestos litigating, ambulance chasing lawyers and their trolls like Sean Salisbury…

  8. jakek2 says: May 18, 2012 12:03 PM

    The same nimrods who were calling the players greedy during the negotiations are now slamming them for agreeing to a bad deal. Instead of slamming them, you all should be THANKING them or else there would still be no football.

  9. kahnsbushymustache says: May 18, 2012 12:59 PM

    The NFL should also hope that the players don’t notice that bullet point 3 and bullet point 4 are the same…

  10. paulsmith107 says: May 18, 2012 1:27 PM

    D smith good job lol you were made to look like a clown

  11. footballfanatic1906 says: May 18, 2012 1:44 PM

    D Smith did a great job screwing the nflpa in bed with goodell and then got hit with the okie doke. You did a far better job on the muppets as gonzo.

  12. kane337 says: May 18, 2012 1:58 PM

    D Smith will sue the NFL when the salaries don’t go up as they expected even though he signed off on the deal. Suing is all he knows.

  13. backindasaddle says: May 18, 2012 7:17 PM

    All Kraft said was that the rate of increased spending would be slow and steady as opposed to an immediate sudden spike. The NFLPA apparently took this as an assault upon their manhood and could not stand the impression that they would not be raking huge and immediate increases in pay. They also could not stand the impression that they didn’t rape the owners for all they’re worth. The response above by the NFLPA is far more about propaganda than it is about actual substance. Of course, that’s very typical of how unions operate.

  14. billhicks666 says: May 18, 2012 9:22 PM

    bozosforall says:

    “They can thank scumbag owners like Robert Kraft for that.”

    Wow. Hate on the Patriots all you want, but Robert Kraft has never struck me as being a “scumbag”. In fact, call me naive, but he seems downright decent to me.

  15. jwayne111 says: May 18, 2012 9:22 PM

    Gotta love the Homie D Smith comment. Reminds me of NBA players starting their own league.

    You are “Ridiculous” D Smith – CYA support in a couple years.

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