NFL salary cap could drop by $70 million per team next season?

[Hadenough]

Again, Jerry did this last year in 2019:

https://www.foxbusiness.com/business-leaders/dallas-cowboys-jerry-jones-buys-energy-company

This is what happened in May 2020 with Comstock and after the government pumped trillions in the badly-hurt energy industry, that continually takes a beating:

https://www.fool.com/investing/2020/05/14/why-comstock-resources-plummeted-36-at-the-open-on.aspx

This is what Jerry said when he extended Zeke:

https://www.foxbusiness.com/busines...gas-investment-helped-pay-for-ezekiel-elliott

https://sports.yahoo.com/on-day-jer...-recouped-62-m-on-stock-market-215406935.html

Well thanks to Zeke the stock doesn't have a dividend. Lol

 

[doomsday9084]

How can the NFL deal with this?
1. Other leagues are asking for player salary cuts. Its common in european soccer. MLB rejected it. Basketball said OK. I'm not sure how feasible it is in the NFL because a large percentage of the compensation is in signing bonuses already paid.
2. Just cut the cap $70m. This would turn into a blood bath as teams are forced to cut large percentages of their roster.
3. Distribute the loss over multiple years.

I strongly suspect they are going to go with #3. The owners are cutthroat though. By eating the loss, they are protecting the players. If they distribute it over multiple years, I wouldn't be surprised if they ask for an $80m cut to cover interest payments on the debt NFL teams will have to carry to cover it. End result would be to see the cap drop $20m per year for 4 years or something.

What does that mean? Well, I wouldn't want to be a free agent for the next few years and there is no way Dak gets a second tag.

 

[lockster]

NFL owners will have an alternative solution. It may cost them some profits but diluting the talent to get down to that salary cap figure would devastate the NFL to the point were they might never recover.

Besides, you can believe that there are groups of vultures just waiting for the NFL to weaken enough to make another league viable.

We could only hope for another league with the means to run football, but not connected to the NFL.

 

[BigD_95]

Bye Bye Dak. No huge contract for you.

Wouldn't that be the funniest thing? Next year the contract is way lower & the franchise tag is lower next year.

It would be nice to see his greed bite him in the a**

 

[doomsday9084]

Wouldn't that be the funniest thing? Next year the contract is way lower & the franchise tag is lower next year.

It would be nice to see his greed bite him in the a**

To the best of my knowledge, Dak's franchise tag has to go up by a set amount if he gets tagged again. I believe it is around 20%. Unless the league renegotiates with the players, Dak's tag next year will not be affordable by the Cowboys if the cap goes down by any real amount.

I can't believe France didn't take this into account. He didn't just do this with Dak. He did it with several of his other players. He is going to set a bunch of players loose as free agents in the worst ever year to be a free agent.

 

[fivetwos]

I'm starting to think theres some of you out there that wouldnt mind the league folding as long as Prescott didn't get his money.

 

[fivetwos]

How can the NFL deal with this?
1. Other leagues are asking for player salary cuts. Its common in european soccer. MLB rejected it. Basketball said OK. I'm not sure how feasible it is in the NFL because a large percentage of the compensation is in signing bonuses already paid.
2. Just cut the cap $70m. This would turn into a blood bath as teams are forced to cut large percentages of their roster.
3. Distribute the loss over multiple years.

I strongly suspect they are going to go with #3. The owners are cutthroat though. By eating the loss, they are protecting the players. If they distribute it over multiple years, I wouldn't be surprised if they ask for an $80m cut to cover interest payments on the debt NFL teams will have to carry to cover it. End result would be to see the cap drop $20m per year for 4 years or something.

What does that mean? Well, I wouldn't want to be a free agent for the next few years and there is no way Dak gets a second tag.

How about offsetting the loss with these supposed substantial gains later on?

Also, we don't know which side would absorb what percentage of any loss. If it were a dollar for dollar removal from the cap, the players would be eating all of it.

If this gets to where Dallas cant afford its quarterback (first of all you'll see other players cut first, and very possibly Prescott getting nervous and caving), many, many players on other teams are going to need to be cut and be on the sidelines. The league doesnt want that, and wont force the NFLPU into it.

This supposed loss, which is pure speculation at this point, will be barely noticed as far as player cuts go.

Some people just want Prescott out of town so badly that they spend time coming up with scenarios under which the NFL owners will collectively shoot themselves in the foot and lower the value of their franchises.

Sorry, not gonna happen.

 

[doomsday9084]

How about offsetting the loss with these supposed substantial gains later on?

Also, we don't know which side would absorb what percentage of any loss. If it were a dollar for dollar removal from the cap, the players would be eating all of it.

If this gets to where Dallas cant afford its quarterback (first of all you'll see other players cut first, and very possibly Prescott getting nervous and caving), many, many players on other teams are going to need to be cut and be on the sidelines. The league doesnt want that, and wont force the NFLPU into it.

This supposed loss, which is pure speculation at this point, will be barely noticed as far as player cuts go.

Some people just want Prescott out of town so badly that they spend time coming up with scenarios under which the NFL owners will collectively shoot themselves in the foot and lower the value of their franchises.

Sorry, not gonna happen.

The league has negotiated a roughly 50% split between players and teams on revenue. When they say the cap is going to come down $70m they are saying that league revenue is going to go down by more than $140m per team.

If you think that the teams are just going to eat a $140m loss without passing a significant portion of it onto the players, you haven't been paying attention to the NFL.

Some people just want things to go their own way so badly that they are burying their head in the sand on this issue. Every other league in the world is grappling with huge financial issues. Players are taking massive pay cuts across the world. Its really naive to think it isn't happening in the US.

https://www.forbes.com/sites/tomsan...-cut-through-official-statement/#180b6e6866f0
https://www.insider.com/nba-salaries-reduced-lebron-james-steph-curry-2020-5

That's Barcelona, one of the biggest sports teams in the world getting their players to take a 70% cut in wages. That's also the NBA giving players a 25% pay cut. This stuff is real.

 

[conner01]

Well, now the players will get to see why the owners make so much money. It's in times like this that only the owners' revenues will drop. I seriously doubt that players are let go as most are under contract. Now, we'll see.

If the cap stayed level for 2-3 years it won’t be just the owners
All free agents would too and over 2-3 years that’s a huge part of most rosters
Many vets who are a part of a team now could end up being cut because teams would have to shed cap space
Over a 2-3 year period many players and owners will take huge loses

 

[Bowdown27]

I just don’t think allowing a drop of $70 mil in one year is even feasible. Teams literally wouldn’t be able to field squads. I know it’s all about the money. But are teams having to cut some of their best players to fit them under a lowered cap, is that in their best interests financially, long term?


I imagine they will slow down the growth of the salary cap, rather than let the cap itself drop in one season.

IMO.

Totally agree. I can’t see it dropping that much

 

[jterrell]

The 70m per team drop will be divided over 3 seasons. So 23M drop next season.
That won't hurt Dallas but will some other teams that already pushed cap money forward like credit card spending.

As soon as fans are back the cap will absorb the rest of the money with probably almost a break even year in year 2 then a rise in year 3.
Year 4 will go ballistic-ally high and you wonder why Dak and his agent wanted to be Free agents again after 4 years?

The players will have to have "some" portion of their pay put in escrow and agree to 2 pre-season games.
Those are compromises that are very likely coming.

This isn't that complicated and teams and players both want the season to occur so will agree to best of the bad deals.

 

[jterrell]

BTW it also possible that decision get reversed mid year and the last 4-5-6 weeks are with crowds.
If that occurs this reduction will be far less drastic, possibly closer to 5M than 23.

 

[jterrell]

https://www.spotrac.com/nfl/cap/2021/

This shows teams this will hurt most are the Eagles and Saints.

 

[Cowboys22]

This is never going to happen or they will find a way around it. The league and the PA will negotiate a work around. They can borrow from future caps and keep the reduction at a minimum or they can simply negotiate that players will only receive a % of their salaries for 1 year. Something will be done to deal with this. I said it before. On my list of thigs I'm worried about, this comes in below Dwayne Haskins becoming the best QB in the NFC East.

 

[jterrell]

This is never going to happen or they will find a way around it. The league and the PA will negotiate a work around. They can borrow from future caps and keep the reduction at a minimum or they can simply negotiate that players will only receive a % of their salaries for 1 year. Something will be done to deal with this. I said it before. On my list of thigs I'm worried about, this comes in below Dwayne Haskins becoming the best QB in the NFC East.

exactly. the most profitable sport isn't going to derail because of this.
the NFLPA and owners will both posture so we will hear all this nonsense but they'll move quickly to settle in the middle.
the obvious answers are out as they have already talked and we know what both sides want.

 

[Redball Express]

How can the NFL deal with this?
1. Other leagues are asking for player salary cuts. Its common in european soccer. MLB rejected it. Basketball said OK. I'm not sure how feasible it is in the NFL because a large percentage of the compensation is in signing bonuses already paid.
2. Just cut the cap $70m. This would turn into a blood bath as teams are forced to cut large percentages of their roster.
3. Distribute the loss over multiple years.

I strongly suspect they are going to go with #3. The owners are cutthroat though. By eating the loss, they are protecting the players. If they distribute it over multiple years, I wouldn't be surprised if they ask for an $80m cut to cover interest payments on the debt NFL teams will have to carry to cover it. End result would be to see the cap drop $20m per year for 4 years or something.

What does that mean? Well, I wouldn't want to be a free agent for the next few years and there is no way Dak gets a second tag.

Not to turn this into a Dak thread..

but clearly it reduces any chance of returning at the numbers a 2nd Tag will require.

He will have to sign for a lot less now which is certainly what we want.

​

 

[38 Special]

exactly. the most profitable sport isn't going to derail because of this.
the NFLPA and owners will both posture so we will hear all this nonsense but they'll move quickly to settle in the middle.
the obvious answers are out as they have already talked and we know what both sides want.

Think about this from the owners perspective. Of the ~50% in revenues that they keep, most of that goes in to fixed costs for stadiums, facilities, coaches, front office, etc. The pie is shrinking, but those costs aren’t. They are already hit harder than the players due to the lost revenues.

The CBA dictates that the cap is based on revenues. That’s how the business stays open - the biggest cost (players salaries) has to go down, and in this case it is written into the CBA. If the NFLPA wants to borrow money from future years to keep the cap higher than the massive cuts the CBA requires, it’s going to require a concession from the players. That means the owners are going to have to get salaries lower as well.

I don’t see where anyone is talking about this yet (just getting though 2020 is the objective right now). But make no mistake, it’s coming before the 2021 season. The owners have to stay afloat and service debt like any other business. Some of them are bound to be in financial trouble with what’s happening in the broader economy.

 

[Grenic]

The league has negotiated a roughly 50% split between players and teams on revenue. When they say the cap is going to come down $70m they are saying that league revenue is going to go down by more than $140m per team.

If you think that the teams are just going to eat a $140m loss without passing a significant portion of it onto the players, you haven't been paying attention to the NFL.

Some people just want things to go their own way so badly that they are burying their head in the sand on this issue. Every other league in the world is grappling with huge financial issues. Players are taking massive pay cuts across the world. Its really naive to think it isn't happening in the US.

https://www.forbes.com/sites/tomsan...-cut-through-official-statement/#180b6e6866f0
https://www.insider.com/nba-salaries-reduced-lebron-james-steph-curry-2020-5

That's Barcelona, one of the biggest sports teams in the world getting their players to take a 70% cut in wages. That's also the NBA giving players a 25% pay cut. This stuff is real.

There is a lot of people burying their heads right about now.

 

[Sydla]

The feasibility of cutting $70MM from the cap seems tough. That would mean teams would have to cut key veteran players for example. The Cowboys would have to think about cutting a Tyron Smith or a Zach Martin or an Elliott or a Cooper type and trim elsewhere just to get under the cap.

 

[CowboysFaninHouston]

I just don’t think allowing a drop of $70 mil in one year is even feasible. Teams literally wouldn’t be able to field squads. I know it’s all about the money. But are teams having to cut some of their best players to fit them under a lowered cap, is that in their best interests financially, long term?


I imagine they will slow down the growth of the salary cap, rather than let the cap itself drop in one season.

IMO.

they would probably provision contracts, salary cap, it would be impossible to keep under the cap if its $70 M less, teams would cut a lot of veterans and no one would sign them. NFLPA would also have to understand this and probably make some concessions.