NFL-NFLPA discussions regarding training camp have begun and have already produced fallout regarding training camp procedures. But the sides have yet to discuss money, according to SI.com’s Albert Breer. That will be on tap soon.
The COVID-19 pandemic has threatened to throw off the NFL’s steady growth, injecting the very real possibility the 2021 salary cap plummets. The cap has not decreased since 2011, and reports of the nature of the reduction have lacked clarity on the numbers front. But $50MM and $80MM reduction predictions been floated.
Both the league and the union expect any loss to be a one-time blip, Dan Graziano of ESPN.com notes. The league must renegotiate its TV deals by 2022. Its ESPN contract expires after the 2021 season; the other network deals conclude after the ’22 campaign. Those new contracts have always been predicted to produce significant cap spikes. However, cap spikes from a reduced 2021 number would be a bit different than the early-2020s boom that was anticipated when this CBA was ratified.
How the owners and players determine a salary cap adjustment, however, could be tricky. A players-side source informed Graziano there “is not going to be a conversation about reducing our revenue.” The players are also viewing 2020 salary cuts — mentioned as a possibility in advance of these talks — as a non-starter, Graziano adds. Unlike baseball, however, these talks will not affect the 2020 season.
The combination of both sides viewing this as a financial blip and the players coming out of the gate bearish on sacrificing revenue would point to a scenario where the parties borrow from projected future revenue to prevent a 2021 cap freefall. This would impact future cap increases, however. Some early hypotheses point to the next round of TV deals being frontloaded to help cover COVID-19’s financial impact, Graziano adds.
The salary cap is determined each March, so a precise number will not be known for many months. The league and the union, though, will need to hammer out a complicated agreement — which will hinge on how many fans will be allowed to attend games this fall — in the coming weeks.
“both sides have yet to discuss money” – well good luck with that one (sincerely, a baseball fan)
A decline or even a stabilizing of the salary cap next year is going to hamstring a lot of teams. Teams do their contracts with the thought that the cap will go up by a certain percentage, and adjust the raises in the contracts of player to fit it. There are teams now that are up against the cap next year even with an anticipated raise in it. If it happens, a lot of star players are going to be looking for jobs at a greatly reduced salary then they wanted .
NFL… Meet the MLB. See how there covid-19 talks are going