CBA Term Sheet

[AdamJT13]

If approved by the players, the new collective bargaining agreement will include the following key terms:

TERM:

· The fixed term of the agreement covers the 2011 through 2020 seasons and includes the 2021 draft.

PLAYER HEALTH AND SAFETY:

· Immediate implementation of changes to promote player health and safety by:

o Reducing the off-season program by five weeks, reducing OTAs from 14 to 10;
o Limiting on-field practice time and contact;
o Limiting full-contact practices in the preseason and regular season;
o Increasing number of days off for players.

· Opportunity for current players to remain in the player medical plan for life.
· An enhanced injury protection benefit of up to $1 million of a player’s salary for the contract year after his injury and up to $500,000 in the second year after his injury.
· No change to the 16-4 season format until at least 2013; any subsequent increase in the number of regular-season games must be made by agreement with the NFL Players Association.
· $50 million per year joint fund for medical research, healthcare programs, and NFL Charities, including NFLPA-related charities.

RETIRED PLAYER BENEFITS:

· Over the next 10 years, additional funding for retiree benefits of between $900 million and $1 billion. The largest single amount, $620 million, will be used for a new "Legacy Fund," which will be devoted to increasing pensions for pre-1993 retirees.
· Other improvements will be made to post-career medical options, the disability plan, the 88 Plan, career transition and degree completion programs, and the Player Care Plan.

DRAFT/FREE AGENCY SYSTEM:

· An annual Draft of seven rounds plus compensatory picks for teams which lose free agents.
· Unrestricted free agency for players after four accrued seasons; restricted free agency for players with three accrued seasons.
· Free agency exceptions (franchise and transition players).

ENTRY LEVEL COMPENSATION SYSTEM:

· New entry-level compensation system including the following elements:

o All drafted players sign four-year contracts.
o Undrafted free agents sign three-year contracts.
o Maximum total compensation per draft class.
o Limited contract terms.
o Strong anti-holdout rules.
o Clubs have option to extend the contract of a first-round draftee for a fifth year, based on agreed-upon tender amounts.

· Creation of new fund to redistribute, beginning in 2012, savings from new rookie pay system to current and retired player benefits and a veteran player performance pool.

ECONOMICS:

· Salary cap plus benefits of $142.4 million per club in 2011 ($120.375 million for salary and bonus) and at least that amount in 2012 and 2013.
· Beginning in 2012, salary cap to be set based on a combined share of “all revenue,” a new model differentiated by revenue source with no expense reductions. Players will receive 55 percent of national media revenue, 45 percent of NFL Ventures revenue, and 40 percent of local club revenue.
· Beginning in 2012, annual "true up" to reflect revenue increases or decreases versus projections.
· Clubs receive credit for actual stadium investment and up to 1.5 percent of revenue each year.
· Player share must average at least 47 percent for the 10-year term of the agreement.
· League-wide commitment to cash spending of 99 percent of the cap in 2011 and 2012.
· For the 2013-2016 seasons, and again for the 2017-2020 seasons, the clubs collectively will commit to cash spending of at least 95 percent of the cap.
· Each club committed to cash spending of 89 percent of the cap from 2013-2016 and 2017-2020.
· Increases to minimum salaries of 10 percent in Year 1 with continuing increases each year of the agreement.

2011-2012 TRANSITION RULES:

· Special transition rules to protect veteran players in 2011. All teams will have approximately $3.5 million in what would otherwise be performance-based pay available to fund veteran player salaries.
· Each club may "borrow" up to $3 million in cap room from a future year, which may be used to support veteran player costs.
· In 2012, each club may "borrow" up to $1.5 million in cap room from a future year. Both these amounts would be repaid in future years.

OTHER:

· No judicial oversight of the agreement. Neutral arbitrators jointly appointed by the NFL and NFLPA will resolve disputes as appropriate.
· Settlement of all pending litigation.

 

[firehawk350]

If approved by the players, the new collective bargaining agreement will include the following key terms:

TERM:

· The fixed term of the agreement covers the 2011 through 2020 seasons and includes the 2021 draft.

PLAYER HEALTH AND SAFETY:

· Immediate implementation of changes to promote player health and safety by:

o Reducing the off-season program by five weeks, reducing OTAs from 14 to 10;
o Limiting on-field practice time and contact;
o Limiting full-contact practices in the preseason and regular season;
o Increasing number of days off for players.

· Opportunity for current players to remain in the player medical plan for life.
· An enhanced injury protection benefit of up to $1 million of a player’s salary for the contract year after his injury and up to $500,000 in the second year after his injury.
· No change to the 16-4 season format until at least 2013; any subsequent increase in the number of regular-season games must be made by agreement with the NFL Players Association.
· $50 million per year joint fund for medical research, healthcare programs, and NFL Charities, including NFLPA-related charities.

RETIRED PLAYER BENEFITS:

· Over the next 10 years, additional funding for retiree benefits of between $900 million and $1 billion. The largest single amount, $620 million, will be used for a new "Legacy Fund," which will be devoted to increasing pensions for pre-1993 retirees.
· Other improvements will be made to post-career medical options, the disability plan, the 88 Plan, career transition and degree completion programs, and the Player Care Plan.

DRAFT/FREE AGENCY SYSTEM:

· An annual Draft of seven rounds plus compensatory picks for teams which lose free agents.
· Unrestricted free agency for players after four accrued seasons; restricted free agency for players with three accrued seasons.
· Free agency exceptions (franchise and transition players).

ENTRY LEVEL COMPENSATION SYSTEM:

· New entry-level compensation system including the following elements:

o All drafted players sign four-year contracts.
o Undrafted free agents sign three-year contracts.
o Maximum total compensation per draft class.
o Limited contract terms.
o Strong anti-holdout rules.
o Clubs have option to extend the contract of a first-round draftee for a fifth year, based on agreed-upon tender amounts.

· Creation of new fund to redistribute, beginning in 2012, savings from new rookie pay system to current and retired player benefits and a veteran player performance pool.

ECONOMICS:

· Salary cap plus benefits of $142.4 million per club in 2011 ($120.375 million for salary and bonus) and at least that amount in 2012 and 2013.
· Beginning in 2012, salary cap to be set based on a combined share of “all revenue,” a new model differentiated by revenue source with no expense reductions. Players will receive 55 percent of national media revenue, 45 percent of NFL Ventures revenue, and 40 percent of local club revenue.
· Beginning in 2012, annual "true up" to reflect revenue increases or decreases versus projections.
· Clubs receive credit for actual stadium investment and up to 1.5 percent of revenue each year.
· Player share must average at least 47 percent for the 10-year term of the agreement.
· League-wide commitment to cash spending of 99 percent of the cap in 2011 and 2012.
· For the 2013-2016 seasons, and again for the 2017-2020 seasons, the clubs collectively will commit to cash spending of at least 95 percent of the cap.
· Each club committed to cash spending of 89 percent of the cap from 2013-2016 and 2017-2020.
· Increases to minimum salaries of 10 percent in Year 1 with continuing increases each year of the agreement.

2011-2012 TRANSITION RULES:

· Special transition rules to protect veteran players in 2011. All teams will have approximately $3.5 million in what would otherwise be performance-based pay available to fund veteran player salaries.
· Each club may "borrow" up to $3 million in cap room from a future year, which may be used to support veteran player costs.
· In 2012, each club may "borrow" up to $1.5 million in cap room from a future year. Both these amounts would be repaid in future years.

OTHER:

· No judicial oversight of the agreement. Neutral arbitrators jointly appointed by the NFL and NFLPA will resolve disputes as appropriate.
· Settlement of all pending litigation.

So the cap is $120M+3.5M credit+3M they can borrow. So $126.5M for all intents and purposes...

 

[Hostile]

Do I read this right Adam, there is no opt out on this deal? So this is 10 years written in stone?

 

[AdamJT13]

Do I read this right Adam, there is no opt out on this deal? So this is 10 years written in stone?

Based on this outline, that is correct.

Also, there is apparently NO INDIVIDUAL TEAM CASH FLOOR this season. I would imagine that the cap floor still applies.

 

[sjordan6]

Adam I have one question about the franchise tag...Did the players ever get it in the CBA that the tag can only be used onced? For example, if they dont iron out a new contract could Vincent jackson and Logan Mankins get the franchise tag again next season? And explain the transition tag and how many does a team receive?

(ok maybe that more than one question)

 

[Stash]

First, thank you so much for posting this!



Any mention of the reported 'soft cap'?

 

[Hostile]

Based on this outline, that is correct.

Also, there is apparently NO INDIVIDUAL TEAM CASH FLOOR this season. I would imagine that the cap floor still applies.

Whoa! I gotta tell you, that excites me if this gets accepted.

 

[peplaw06]

Do I read this right Adam, there is no opt out on this deal? So this is 10 years written in stone?

Pash said it was a firm deal. No opt outs.

Adam I have one question about the franchise tag...Did the players ever get it in the CBA that the tag can only be used onced? For example, if they dont iron out a new contract could Vincent jackson and Logan Mankins get the franchise tag again next season? And explain the transition tag and how many does a team receive?

(ok maybe that more than one question)

The players dropped their demand for a limit on franchise tags according to Mortensen. There are other restrictions on use of transition tags, and other restrictions though, according to him.

 

[DWhite Fan]

Whoa! I gotta tell you, that excites me if this gets accepted.

Listening to the presser on NFL Network and they said there was no opt out. Like you Hos, this made me smile. 10 seasons of labor peace after all that has gone on sounds very sweet

 

[burmafrd]

so practically speaking what will be the cap limit and floor this year?

 

[MarionBarberThe4th]

In 2013: 17 regular season, 2 pre-season, 2 bye-weeks.

 

[CCBoy]

That's a great and informative document. Thanks.

This implies a sum of $6.5 M towards the cap total. And with a couple of releases and about three contract reworkings, Dallas would be well on it's way to upgrading and restocking the 'needs' positions.

 

[casmith07]

Still think that the franchise tag is a bunch of bull, but it's not a bad deal.

Hell, I don't really care. It's a great deal if there's football.

 

[cowboyjoe]

Based on this outline, that is correct.

Also, there is apparently NO INDIVIDUAL TEAM CASH FLOOR this season. I would imagine that the cap floor still applies.

Adam, can the head coach have a player in pads, say monday moring, then players have to be in shells that afternoon, but the following day, that morning on tuesday, can coach garrett put the players back in pads.

Hos, you know who is telling me that you cant have 2 or 3 days of pads in training camp, can you clarify

 

[AdamJT13]

Also, there is apparently NO INDIVIDUAL TEAM CASH FLOOR this season.

ESPN said the cash floor (89 percent) applies this year, but the term sheet says it's only "2013-2016 and 2017-2010," which implies that it's a minimum over those four-year periods, not each season. It does not mention a team cash floor for 2011 or 2012.

 

[CoCo]

In 2013: 17 regular season, 2 pre-season, 2 bye-weeks.

That's either your request or prediction becuase it doesn't say that in the document. Just clarifying.

 

[gimmesix]

ESPN said the cash floor (89 percent) applies this year, but the term sheet says it's only "2013-2016 and 2017-2010," which implies that it's a minimum over those four-year periods, not each season. It does not mention a team cash floor for 2011 or 2012.

Would that be because of the major efforts it would take by some teams to reach it?

Giving them more time to build up to the floor would seem more practical.

 

[DIEHARD]

Whoa! I gotta tell you, that excites me if this gets accepted.

I apologize for being an idiot on this subject but what is the difference between the 2 and how does that help us?

 

[Dyluke]

With all that being said, where do the Cowboys stand as far as the cap? Allowed to borrow 3 Mill for potiental Vet cuts doesnt sound like the "Jerry Jones Rule" i was expecting.

 

[AdamJT13]

Players will receive 55 percent of national media revenue, 45 percent of NFL Ventures revenue, and 40 percent of local club revenue.

I just wanted to point out this new aspect. Under the old system, teams had no incentive to create new revenue streams that didn't have a profit margin of more than 50 percent, because they would have lost money. They still need a 40 percent profit margin now, which still seems high, but it is a lot better than 50 percent. And the players will actually get a HIGHER percentage of the TV money than before.