Teams bracing for revenue losses could be quicker to cut veterans in August

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The NFL (in other words its teams) could lose up to $5.5 billion if 2020 games happen without fans.

And so if revenues are down the solution is simple: Reduce expenses. But with the salary cap set and contracts signed, it’s incredibly unlikely that the league and the union would agree to reduce the per-team spending limit.

There’s another way for teams to save money without a reduced cap. They can simply unload more non-guaranteed veteran salaries at some point before those salaries become as a practical matter guaranteed as of Week One of the regular season.

It happens every year for more than a few teams. Veterans with bloated salaries find themselves squeezed to take less under the threat of being released and replaced by a younger, cheaper option. This year, perhaps at the express directive of the powers-that-be with their hands on the pursestrings, teams could be more willing to jettison veterans in order to reduce the cash going out in a season of reduced money going in.

Of course, teams will need to be sure that the younger and cheaper options will be ready to contribute. With no offseason programs or rookie minicamps, young players will have a harder time persuading coaches that they can be trusted. But those who do may be more likely to get the benefit of the doubt.

If a team can swap out a $6 million salary for a six-figure obligation, the team not only reduces its expenses in 2020 but also creates cap space that can be pushed into 2021, in the event the salary cap drops due to decreased revenues this season. So don’t be surprised if more than a few teams start slashing payroll for the coming season as the start of it approaches, especially if that team fears it will be making significantly less money during the pandemic.

16 responses to “Teams bracing for revenue losses could be quicker to cut veterans in August

  1. LOL. Why can’t the owner just have their net worth drop .001% and pay all their players?

  2. You got me curious. I checked out OTC’s estimates on who has the least projected “Cap Space” in 2021 and found It interesting. Some teams are going to be hurting if the cap shrinks, & a few are hurting even if it grows at it’s normal pace.

    The Eagles & Saints are worst off & in the Red next season. They will be making some changes. The Falcons have virtually no space & the remaining top 15 teams with little space, in order, are: Texans, Steelers, Bears, Cowboys, Vikings, Chiefs, Raiders, Browns, Bills, Panthers, Packers, and the Rams.

  3. So this article is saying the Bengals will be starting the cheerleaders next year? That about right?

  4. $5.5 billion equates to $171.9 million per team. Not much impact from cutting a few vets to save $6 million.

  5. getyourownname says:

    $5.5 billion equates to $171.9 million per team. Not much impact from cutting a few vets to save $6 million.
    ###

    I think you (and others) missed the point of how the loss of $5.5 billion in 2020 revenue affects the salary cap.

    Based on your numbers, that means that the current salary cap of $198.2M per team would be seriously affected by a $171.9M per team loss.

    Less revenue means NO increase in the cap and very possibly a decrease in 2021. The players currently get 48% of the revenue for the salary cap.

    This is a serious problem for older veterans with higher salaries.

    Now it’s been discussed that the NFL may work with the NFLPA to adjust the cap by borrowing from future years caps. That’s fine, but are the owners going to give the players 100% of what the cap might have been?

    This is where cutting a few veterans comes in.

  6. If there is a big revenue loss, the NFL and NFLPA should simply agree to an across the board salary cut for a year on a percent basis. I.e. 20% pay cut or whatever is commensurate with the revenue loss.

  7. As players, coaches, GMs, owners, and commentators are always telling us: The NFL is a business. They don’t always add that it’s often an ugly business, especially for the men (the veterans) who usually sacrifice at least some aspects of their long-term health to play it. This season has the potential to be really ugly in terms of veterans getting hosed by non-guaranteed money contracts.

  8. I believe the price for a TV commercial will become very high once on fans in the stands takes effect. And the NFL can add more TV commercial time to every game.

  9. This might be a great time to stop overpaying for Entitled qbs who make way too much of the pie. I understand the whole position is the most important But their market is overemphasized. Average qbs like cousins for instance shouldn’t have their hands out every 4 years saying it’s my turn make me the highest paid player even though I’ve done very little In terms of getting you a championship.

  10. And this people who want to keep everything “shelter at home” is what is called skin-in-the-game. It is easy to say “shelter at home” when you are getting a guaranteed check, no so much if you are losing your job and no check! Players could loose their income and relate to the many of us ordinary people.

  11. areyouseriousrofl says:
    May 22, 2020 at 7:58 pm
    LOL. Why can’t the owner just have their net worth drop .001% and pay all their players?
    ~~~~~~~~~~~~~
    “Partners,” remember. Players are partners when splitting revenue. Now that a cost/expense is looming they don’t want anything to do with partners and will demand they get paid. That’s why the negotiations for CBA are all bogus.

  12. areyouseriousrofl says:
    May 22, 2020 at 7:58 pm
    LOL. Why can’t the owner just have their net worth drop .001% and pay all their players?
    —–

    Just an assumption, but you don’t have a business degree, do you?

  13. Teams bracing for revenue losses could be quicker to cut veterans in August
    _____________________

    And just >2 months age you were counting on and telling us about all of this new money from gambling and a new TV deal that hadn’t even been made yet, wow how fast hings can change! I don’t think the new TV deal will be nearly as lucrative as you and some others think, especially since the viewership numbers never returned to what there were in 2008, those numbers are still 1.4mil viewers a game under what they were 12yrs ago and these bidders will take that into consideration! Also there are a lot more people like me out there now, I record the games and then start watching them about 1.5-2hr after the start time so I can FF through all the commercials and the half a dozen replays of every single play they like to bore us with, I don’t need to see a play 6 times!

    I’m still waiting to hear how the NFL will benefit from me making a $20, $50 or $100 bet on a team? They never have for >45yrs and that’s not going to change now.

  14. Robert Zak says:
    May 23, 2020 at 9:48 am
    I believe the price for a TV commercial will become very high once on fans in the stands takes effect. And the NFL can add more TV commercial time to every game.
    _________________________

    They can add all they want and as I said above I’ll just FF through them! I don’t do commercials and you wouldn’t believe how fast you can watch anything when you FF through all the commercials, a full game only takes about 45-50min to watch instead of well >3 hours if you put up with all the BS!

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