NFLPA wants to spread pandemic financial losses over 10 years

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Significant issues indeed remain between the NFL and NFL Players Association as management and labor struggle to resolve all issues that need to be resolved before pandemic football can be played. All are equally significant in this moment, but one carries universal significance: Money.

Tom Pelissero of NFL Media reports that the NFL has received from the NFLPA a proposal regarding the economic issues relating to the handling of the financial losses in 2020 and the impact of those losses on future salary caps.

The NFLPA wants none of this year’s salaries to be placed in escrow, a flat salary cap for 2021 ($198.2 million), payment of all fully-guaranteed money even if games are canceled, and (most significantly) an agreement to spread any 2020 revenue losses over nine seasons, from 2022 through 2030.

As PFT reported last night, the league and the union will resume direct discussions on Monday, with the goal of getting all issues resolved by Wednesday or Thursday.

Under the CBA, the 2020 player salaries are locked in, and the two sides agree that all money is due and payable the moment the teams play one game. If any games are canceled, the two sides acquire an express duty to bargain regarding the impact of lost revenues on the next year’s salary cap. (It’s a redundant obligation, given that the two sides annually negotiate the salary cap.)

Neither side should want the cap to dip in 2021. Teams have players under contract at specific salary levels, and many teams would have to do major surgery to the roster to comply with a dramatically shrunken cap. Thus, it makes sense to smooth the damage from 2020 over years in which there won’t be a pandemic, there will be new TV deals, and there will be a likely explosion of legalized sports betting and the cash money that comes from it.

30 responses to “NFLPA wants to spread pandemic financial losses over 10 years

  1. If all money is due and payable upon one game being played in 2020 the owners would be fools to have a season this year considering the NFLPA demands !

  2. I think its clear spreading the cap loss over a period of years makes the most sense.

    I would say the players should be flexible on reduced salaries depending on lower games but NFL contracts a wonky so you’d end up with 150 arbitration cases going both ways that includes s money for roster bonuses and money for incentives.

  3. NFL & players are ruining a good thing, continue what you are doing and the NFL will be no more.

  4. If this story doesn’t prove to fans there will NOT be a 2020 season I don’t know what will?

  5. If no season this year, I think I’m probably just going to quit being a fan. Too much politics and dramatic BS that was never an issue years ago – let these guys work as janitors amd garbagemen.

  6. So basically they want all their money and they want the losses to be absorbed by future players on their behalf. Sure that’s very fair, wait no it’s not at all. I would love for some of the players to sit in a room with people who have lost their jobs, dealt with real hardship thru this crisis. I love the NFL but souring on it fast.

  7. Players willing to pay 8% interest on that 9 year loan? No reduction in 2021? They do realize there’s a pandemic about, right? 2021 will likely be below 2019 as well. Might as well ask for the moon, the stars, the Milky Way, etc. That way we know you aren’t really serious. That’s an embarrassing opening position, tone deaf (to use current language thrown around).

  8. And when a player opts out of playing for COVID reasons, they forfeit their salary, right?

  9. If a majority of the workforce was part of a union / collective bargaining agreement, they would be having the same types of negotiations. So many clouded judgments towards these guys ensuring that they are covered as well.

    “Well I work for not millions of dollars and I have to go to work during COVID!

    Yeah, because there is no leverage for the average American worker and the government hasn’t stepped in to help cover multiple MONTHS of rent/mortgage, child care, groceries, electric and water bills, etc. Just force the economy open so the rich can continue to stay richer, while Joe and Mary Bootstraps risk physical AND mental health.

    But yes, the players are the greedy fools.

  10. No sports until there’s a vaccine America to do likewise is foolhardy for reasons that go far beyond financial

  11. Spread over 10 years? Just pay them unemployment, $600 a week for 4 months instead of their game checks.

  12. I think the easiest solution would be to give teams a salary cap exception for guarantees on contracts signed before the start of the league year. This would apply mostly to signing bonuses; of which the actual money was paid out the day the contract was signed but is prorated over the life of the contract. Almost every player not on a rookie deal will have some prorated salary on the cap that could be exempted.

    This would allow most players to keep their base salary (which is typically low in the early years of a contract) and the teams wouldn’t be on the hook for money that has already been paid out once the cap adjusts down. Players near the end of their contracts where the base salary is typically higher can either convert that salary into a signing bonus (prorating the money out over several years) or be cut. A problem GMs bake into contracts by back loading the base salary.

    The NFL owners are going to have to take the financial hit on the chin; they signed the contracts and as long as games are played the players deserve the money they are owed. The players take all of the physical risks and the owners take all of the fiscal risks. The best way to honor that system is to manipulate the cap not the payroll.

  13. No games no pay that’s it period.. don’t like it then go put your college degree to use

  14. jonathankrobinson424 says:
    July 11, 2020 at 9:51 am
    Mark Cuban was spot on 7 years ago.
    ___________________

    Yup, as the NFL continues to grow, even through a pandemic. Cuban should worry about his own league, which last I checked is run by the players.

  15. they want all guaranteed money to be paid regardless if games are played.
    so in other words they now take the stand that ‘we dont want to play, we just want to get paid’
    this is such utter bull stuff
    Paid full pay to sit on your butt at home on the couch…..and do nothing.
    the world we live in

  16. No way. Take the hit in the fiscal year that it occurs and if that means reaching into player pockets, so be it. Salary cap hits should be adjusted and this only should be done the year the losses occur. What the NFLPA is trying to do is to steal money and then to cover it in a catbox. These jerks want full game payments even if the games aren’t played and they are protecting their minions who will never make adjustments in their personal lives to lower the obligations to match their incomes.

  17. Owners should walk away from the table. What is the NFLPA going to do? Strike in a cancelled season?

  18. Spreading out the money makes sense. When a rare thing happens it makes sense to divide up the hit over many years.

  19. If the NFL plays hardball the players may have another option other than to strike. The cap would be like nothing in 2021 due to no profits so owners would have to cut all the players and make everyone a free agent to get under the cap for 2022. But with no stars in 2021 due to cuts, the cap would be nothing in 2022 also. But all the stars would be free agents at once. Fans pay to see stars not jerseys. Essentially the players could start their own league with far more talent than the NFL would be left with, the players could own the new league themselves, and the NFL would have almost nobody under contract to compete and could not compete with big cash because their own contract would force them to honor tiny salary caps triggered by tiny profits from an incomplete Or canceled season and losses and the domino effect of cutting the salary cap to match the losses. The whole reason usfl and other leagues failed is at any one time, most stars were under contract to the nfl so it always had the best talent. Nuking the salary cap down suddenly is the one thing that could change that and make most stars free agents at one moment.

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