NFLPA continues to want revenue shortfall spread out over several years

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The NFLPA and NFL have come to agreement on several issues, but they still have work to do. The biggest disagreement remaining, not surprisingly, is on how to mitigate the inevitable revenue losses from this season.

The union continues to push for the projected multibillion-dollar revenue shortfall spread over the length of the 11-year Collective Bargaining Agreement. The league has proposed taking the hit in 2020 and 2021.

NFLPA executive director DeMaurice Smith and president J.C. Tretter sent a memo to agents Wednesday night, updating them on where things stand in negotiations.

“We continue to negotiate with the NFL owners over health protocols, contract projections, and salary cap issues,” the memo reads, via Tom Pelissero of NFL Media. “Regarding our health protocols, we are glad to inform you that we have worked together with the NFL to implement the safest standards for our men. As you have heard, there will not be a preseason game. Additionally, we have agreed to strong testing, tracing and treatment protocols, and we are finalizing an acclimation period. These measures reflect implementation of recommendations from third-party scientific experts aimed at keeping everyone as safe as possible during this pandemic.

“On the contractual and CBA operations front, we continue to push the NFL for agreement on strong opt-out options for players, as well as determinations on stipends and treatment of player contracts if the season is canceled. We believe every player has the right to not only make an informed decision on is future, but also to have all the facts before committing themselves and their families to a decision regarding the most unique football season in history. We will be getting that information out to our leadership, our players and to you as soon as it is finalized.

“Finally, there are issues of overall economics, revenue sharing, and salary cap implications. Our proposal is designed to take advantage of the multiyear term of the CBA to mitigate the losses that will affect all aspects of our business. We do not believe it makes sense for our stakeholders to be forced to manage potentially massive fluctuations in the cap this year and next when we have mechanisms available to us that can smooth the inevitable short-term decrease in revenues over time.

“We will continue to update you as negotiations progress, or not.”

Smith explained the NFLPA’s reasoning during a call with Pro Football Writers of America writers last week.

“If there is a dramatic decrease in revenue for this year, and some estimates are that it could be $70 million per club as the impact on player cost,” Smith said. “That means that the salary cap next year could be something around $120 million, and that would mean a number of players could be cut. A lot of players who have salaries that would push a team above that salary cap would be forced to renegotiate, drastically renegotiate, their contracts or they would be cut. So, it goes back to option A. Option B is that both sides try to work through estimates of what the decline would be and figure out a way to avoid a precipitous drop in the salary cap for next year, and therefore protect contracts, protect players, but also remember, protect their benefits because the way that the cap works and the way that our overall compensation package works is if there is a drop in those things, there could be or will be a significant impact on benefits as well.

“So, on this call, I’m not sure anybody can do anything like come up with an ideal number about the salary cap next year. The fundamental question that our leadership is dealing with is whether we have a world where we stick with option A, and there’s a significant downfall on the cap next year, or whether we figure out something that makes sure that that doesn’t happen and is in the best interest of all of our members.”

4 responses to “NFLPA continues to want revenue shortfall spread out over several years

  1. Alternative headline: “NFLPA wants kids who haven’t even started high school to pay for revenue shortage from 2020 season”

  2. Take the hit over two years.

    Allow players to opt out and pay them minimum wage to sit at home during what would have been the season. And they have that missing season added back to their obligation to the team.

    Players who stay with the team and who then find the season cancelled should get the minimum salary for a veteran with their length of service. No bonuses. Just a salary for the season. Cancelled season would count as a completed season for contract purposes.

    Rookies should get half of the league minimum for a veteran without any treatment difference for first rounders or low rounders. Cancelled season would count as a completed season for those who do not opt out of the season.

  3. SO what they really want is the owners to take the whole financial hit with impacting the players at all. Considering this is the NFLPA I guess they should be fighting for that, the owners would be a fool to give them that.

  4. There are going to be quite enormous revenue shortfalls; yes, much caused by Corona, but much more caused by their own toxic behavior regarding the respect shown for our country. They lost legions of fans of the last couple of years because of this, and have decided to increase that loss by going backwards. I for one, will not only not be watching, but I will be conducting a campaign to convince others to NOT purchase ANY product from their sponsors, and to contact those sponsors and let them know.

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