The cap is probably going to drop. now what?

visionary · Jun 3, 2020

Cowboys22 said:
I get that. I guess my point is that I'm not worried because something will be done that is the same for all teams to get through it for one season. It could be as simple as if the cap goes down 40%, then so do all salaries and pro rated cap charges. Maybe they suspend the cap for one season and the player's union agrees that players will only get 75% of their salary. They will negotiate to make it work. We will not see all 32 teams having to cut their high priced players due to the cap situation so I'm not worried about it at all.

i think this is Gods way of saying that Dak should at most get only 75% of what he wants

:muttley:

ABQCOWBOY · Jun 3, 2020

JD_KaPow said:
You've lost me. The brunt of what load?

Again, why? That's what being an owner is.

I"ve lost you? Please go back and read the previous posts.

What if I said that owners should not be responsible for paying players guaranteed portions of contracts if they are injured? What would you think of that? The reasoning I might give is that it's the risk every player takes. If I said that this is what being a player is?

Would you be OK with that?

Rockport · Jun 3, 2020

Redball Express said:
Drama?

Drama is the pandemic null and voiding your business becuz it requires being in contact with people and handling their money.

That's now me.

I am unemployed now.

That's drama.

Me worrying about rich dudes who play a kids game for millions and millions?

Not drama.

Yet you come here and trash the Cowboys every day of the week.

Typhus · Jun 3, 2020

Ranching said:
Cap sucks!

stick to game day menu.

JD_KaPow · Jun 3, 2020

ABQCOWBOY said:
I"ve lost you? Please go back and read the previous posts.

What if I said that owners should not be responsible for paying players guaranteed portions of contracts if they are injured? What would you think of that? The reasoning I might give is that it's the risk every player takes. If I said that this is what being a player is?

Would you be OK with that?

Of course not. They signed contracts and need to abide by the terms of those contracts. Just like the players need to abide by the contracts they sign. The players manage their risk by signing contracts with guarantees.

But you're proposing the opposite: that owners should be able to break contracts so that both sides "feel the pain."

ABQCOWBOY · Jun 3, 2020

CouchCoach said:
The MLB players made the point they are the ones being put at risk, not the owners.

I could see some kind of proration with a reduced number of games played but don't know the verbiage in contracts as far as what constitutes a season. And how are those guarantees defined in the contracts? If they cannot pull off a full season, are some of those contracts written where some get paid their contract amount?

Some of those players, on the lower end of the pay scale, have got to be nervous. We have the tendency to see them all as a bunch of multimillionaires but that is not the case with most of them.

You can bet the owners and NFLPA phone lines have been buzzing.

MLB players made that point with regards to Corona. That's really not what's being discussed here.

But I do agree, a lot has to do with how contracts are written, which is why Guaranteed Up Front Money is so important to so many of these players.

For the record, I have a problem with how the players union handles player salaries. You are right in bringing up the fact that players outside of the very high profile are not adequately represented in many of these discussions. At least I think that's the point you are eluding to.

ABQCOWBOY · Jun 3, 2020

JD_KaPow said:
Of course not. They signed contracts and need to abide by the terms of those contracts. Just like the players need to abide by the contracts they sign. The players manage their risk by signing contracts with guarantees.

But you're proposing the opposite: that owners should be able to break contracts so that both sides "feel the pain."

No. I'm advocating nothing of the sort. I'm suggesting a different way of doing business all together. A more equitable way, to be honest. But in terms of actual agreements, I believe that owners are bound by the CBA to pay a percentage of profits to players. If those profits decline, the amount that is paid out is effected so one way or the other, the pain will be felt by all parties involved eventually.

OmerV · Jun 3, 2020

Redball Express said:
Drama?

Drama is the pandemic null and voiding your business becuz it requires being in contact with people and handling their money.

That's now me.

I am unemployed now.

That's drama.

Me worrying about rich dudes who play a kids game for millions and millions?

Not drama.

There are different levels of drama. I'm sorry about you losing your job, and clearly that is a concern overrides anything on here. But there is a tendency of posters on sites like this to assume situations will result in the worst case scenario or at least bad scenarios even though when there are alternatives that are reasonable and believable.

jterrell · Jun 3, 2020

Lots to unpack with this but short answer is no, the cap won't shrink.
At least not meaningfully.

The league already has expanded playoffs and a 17 game schedule coming.
The deal is barely dry and the ""bad" deal the players took now seems quite smart.

Keep in mind even with 30-40% reductions...; which likely isn't accurate, the players only make ~50% of that. So you'd be talking about a cap reduction of 15-20% at max.
Given about 5% cap growth built in and you can say 10-15% is more accurate end of day.
What will likely happen because it benefits all parties involved is that they will take say 5% in 2021 cap space with 10 or 15% charged off future caps.
The broadcast deals are expected to hit 200 to 250% of the current dollars so those caps will handle those pay-backs quite easily.

Dallas and Washington ate a penalty when they tried to sign guys to large money in an uncapped year to get around the spirit of the cap.
They essentially ate the penalty over the next 2 seasons. And I think that would be the framework here.

Rockport · Jun 3, 2020

ABQCOWBOY said:
I"ve lost you? Please go back and read the previous posts.

What if I said that owners should not be responsible for paying players guaranteed portions of contracts if they are injured? What would you think of that? The reasoning I might give is that it's the risk every player takes. If I said that this is what being a player is?

Would you be OK with that?

Doesn't guaranteed mean guaranteed? :laugh:

jterrell · Jun 3, 2020

the tldr version is the nfl salary cap much like our stock market are too big to fail and measures will be taken to limit exposure then it will sooner rather than later go up.

Cowboy4ever · Jun 3, 2020

I doubt there will be a drop in Cap next year despite what could be a 30% dip in revenue this year. I suspect they will use future earnings to pay for the cap next year and it will stay the same or a small increase. The NFL is a multi-billion dollar enterprise. They have the ability to adsorb a substantial loss and not really affect the product on the field for one or two years.

TwoCentPlain · Jun 3, 2020

As a consumer, I am OK with the cap dropping. It means the price of the product (tickets, jerseys) will go down. And the price the advertiser's pay during NFL games will drop meaning the price of their products will drop, if not profit will increase for those who advertise.

Players' salaries will drop. I think they are overpaid any way. So, no biggie for me.
Owners will make less money. Cry me a river. Doesn't bother me.

Like people said, hard cap so all teams are in the same boat competitively. So, doesn't affect the game in any way for the fan who just watches. Maybe, the players will half rear-end the games and the quality goes down if they don't like the pay cut.

All I do is watch redzone on a free stream via the internet. I tape the Cowboys game if it is on in my area and watch later. I don't buy jerseys, shirts, direct TV, or tickets.

AbeBeta · Jun 3, 2020

viman96 said:
Why is that?

Because there is a collective bargaining agreement. The owners cannot unilaterally make a change.

Kaiser · Jun 3, 2020

Cowboy4ever said:
I doubt there will be a drop in Cap next year despite what could be a 30% dip in revenue this year. I suspect they will use future earnings to pay for the cap next year and it will stay the same or a small increase. The NFL is a multi-billion dollar enterprise. They have the ability to adsorb a substantial loss and not really affect the product on the field for one or two years.

Totally agree. They can absorb the losses and a lot of teams probably won't be in the red anyway.

They will kick the can down the road because that is a much easier path than trying to break contracts and deal with the players union issues. They can argue Force Majure and the contracts no doubt have that language but the owners aren't going to burn a bridge if they don't have to.

csirl · Jun 3, 2020

There are pro teams in some parts of the world who terminated their entire rosters.......on the basis that other teams couldnt afford to sign them in the current circumstances, so they'd resign most at a later date.

Williamsboys · Jun 3, 2020

How do we know this virus won't come back again and again, I say cap flexability is very important right now.

ABQCOWBOY · Jun 3, 2020

Williamsboys said:
How do we know this virus won't come back again and again, I say cap flexability is very important right now.

We don't know that but we can make some educated guesses around this. I don't think that we are looking at a situation that will compromise us annually for however long but, I do agree with you on cap flexibility. You never know what's around the corner and you have to be prepared in my view.

Future · Jun 3, 2020

ChuckA1 said:
I doubt the cap will drop as there are multiple contracts already accounted for. If anything, there will be a freeze.

It won't drop simply because gameday operations represent just a small amount of profits that teams make, though I wouldn't be surprised by a lesser increase than previously expected.

If anything, TV coverage will increase, and the cap will further escalate once the new deal comes out.

Longboysfan · Jun 3, 2020

ChuckA1 said:
I doubt the cap will drop as there are multiple contracts already accounted for. If anything, there will be a freeze.

Just what I was thinking.
A one year freeze - then - a year to year look.

The cap is probably going to drop. now what?

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