NFL's 2021 salary cap could take major hit if games are played without fans

[zekecowboy]

The COVID-19 pandemic hasn't yet directly affected the NFL. Free agents signed contracts beginning in March. The 2020 NFL Draft went on as scheduled but as a virtual experience to prevent a large gathering of people. On Thursday, the league will release a full 17-week schedule set to begin in September.

Things could drastically change for the NFL if fans are unable to attend league events this year.

On Monday, Albert Breer of MMQB wrote NFL clubs could lose up to $100 million apiece in local revenue if spectators are not allowed to attend games because of the virus outbreak. The next day, ESPN's Adam Schefter explained closed-door games could drastically alter the league's salary cap during an appearance on the "MySportsUpdate" podcast:

See link below:


https://www.yardbarker.com/nfl/arti...edium=email&mb_edition=20200506&mb_loc=left_h

 

[Sydla]

Yeah I am not buying it.

How do you cut the cap by tens of millions and still have a functioning league? How do you expect a team to trim, say 70MM, from their cap?

And the NFLPA will lose their minds. Because if they try to cram the cap back down that means a to of veteran players are going to get cut and they’ll have to sign for way less.

 

[MichaelWinicki]

There's this belief by many that ticket sales and other associated fees teams earn from home games doesn't matter because of all the money generated by TV...

Not true.

 

[JoeKing]

Yeah I am not buying it.

How do you cut the cap by tens of millions and still have a functioning league? How do you expect a team to trim, say 70MM, from their cap?

And the NFLPA will lose their minds. Because if they try to cram the cap back down that means a to of veteran players are going to get cut and they’ll have to sign for way less.

Well said. The cap is not going to take a big hit.

 

[HungryLion]

Oh the billionaire owners are going to need to lower salaries from one season of no fans in the stands? When every other season they make billions in profits?

sounds like trash to me.

 

[big dog cowboy]

 

[viman96]

Eagles 2021 cap is -$50M so that is a positive

 

[Parcells4Life]

More incentive to make Dak play on the tag if that’s true.

 

[Kwyn]

Yeah I am not buying it.

How do you cut the cap by tens of millions and still have a functioning league? How do you expect a team to trim, say 70MM, from their cap?

And the NFLPA will lose their minds. Because if they try to cram the cap back down that means a to of veteran players are going to get cut and they’ll have to sign for way less.

It’s all collectively bargained.

The cap is simply a mathematical calculation that the league and the players both agreed to.

Parties to a union contract typically don’t just ignore stuff that’s collectively bargained. That’s why the NLRB has rules that are so specific and binding when it comes to this stuff.

Stuck did a segment on this today. It’s similar to how the Superman deals in the NBA are calculated. It’s part of the CBA and it is what it is

If there are no fans at games, revenues *will* go down and the cap *will* as well unless the owner somehow just decide to eat a couple of billion dollars to make the players happy, which seems like a ridiculous idea to me.

 

[Kwyn]

More incentive to make Dak play on the tag if that’s true.

For sure. I don’t think there is any motivation to sign a gigantic deal right now

 

[MichaelWinicki]

It’s all collectively bargained.

The cap is simply a mathematical calculation that the league and the players both agreed to.

Parties to a union contract typically don’t just ignore stuff that’s collectively bargained. That’s why the NLRB has rules that are so specific and binding when it comes to this stuff.

Stuck did a segment on this today. It’s similar to how the Superman deals in the NBA are calculated. It’s part of the CBA and it is what it is

If there are no fans at games, revenues *will* go down and the cap *will* as well unless the owner somehow just decide to eat a couple of billion dollars to make the players happy, which seems like a ridiculous idea to me.

This.

The cap isn't something that is going to be easily circumvented.

 

[aikemirv]

Oh the billionaire owners are going to need to lower salaries from one season of no fans in the stands? When every other season they make billions in profits?

sounds like trash to me.

Cap is a set % of revenues - past or future profits have nothing to do with

 

[Cowboys22]

The league will just fix it and not stick to the formula for one year. Obviously the PA will go along so the players don't lose 1/3 of their salary.

 

[HungryLion]

Cap is a set % of revenues - past or future profits have nothing to do with

I know how the cap works.

all I’m saying is. The owners and NFL could easily decide to eat the loss from one season of no fans in the stands during a global pandemic considering how they have a license to print money every other season.

 

[aikemirv]

I know how the cap works.

all I’m saying is. The owners and NFL could easily decide to eat the loss from one season of no fans in the stands during a global pandemic considering how they have a license to print money every other season.

So could the players. Should I feel sorry for the millionaires or the other millionaires.

 

[HungryLion]

So could the players. Should I feel sorry for the millionaires or the other millionaires.

I’m not saying feel sorry for either one of them. Nobody asked you to. Perhaps you should explore why your mind immediately goes there.

I personally think it would be a bad decision by teams to immediately throw themselves into “cap hell” and not be able to sign and keep their best players or have to cut players and eat dead money because they can’t afford them under an artificially created salary cap. Especially considering they could financially afford not to, if not for the artificial salary cap.

sounds like an awful way to maintain the football teams they have been working to build.

 

[Plankton]

I know how the cap works.

all I’m saying is. The owners and NFL could easily decide to eat the loss from one season of no fans in the stands during a global pandemic considering how they have a license to print money every other season.

You really think that a group of people and a league that hold up every single municipality that they play in for public funding for stadiums and infrastructure associated with said stadiums when they have more than enough money to build it themselves would eat losses voluntarily and keep the cap going up?

With all due respect, that's never going to happen.

 

[aikemirv]

I’m not saying feel sorry for either one of them. Nobody asked you to. Perhaps you should explore why your mind immediately goes there.

I personally think it would be a bad decision by teams to immediately throw themselves into “cap hell” and not be able to sign and keep their best players or have to cut players and eat dead money because they can’t afford them under an artificially created salary cap. Especially considering they could financially afford not to, if not for the artificial salary cap.

sounds like an awful way to maintain the football teams they have been working to build.

My mind goes there for reasons that can't be discussed on the board although there seemed to be banned intent in your original post. And yes, most could probably afford it and would be a great thing to do, especially for the players near the league minimum but they should not be expected to just because.

 

[HungryLion]

You really think that a group of people and a league that hold up every single municipality that they play in for public funding for stadiums and infrastructure associated with said stadiums when they have more than enough money to build it themselves would eat losses voluntarily and keep the cap going up?

With all due respect, that's never going to happen.

Im not saying it will happen. I’m saying it would be awful for them to let the cap go significantly down when they don’t need to. It would hurt the overall product going forward IMO.

I never implied the owners wouldn’t do it though. So I’m not sure where you got that idea.

 

[HungryLion]

My mind goes there for reasons that can't be discussed on the board although there seemed to be banned intent in your original post. And yes, most could probably afford it and would be a great thing to do, especially for the players near the league minimum but they should not be expected to just because.

I don’t know what you’re referring to with banned intent. Again you’re letting your mind go someplace I’m not referring to.

What I’m saying is. It would hurt the overall NFL product IMO if the owners let an artificial salary cap drop due to one season of reduced revenues. And throw the entire league into a salary cap mess because most of the teams can’t afford their players anymore and their guaranteed contracts.

it would hurt teams a lot more than it would help them IMO.

I never once said they should be expected to “just because”

Is it that hard to see how allowing the salary cap to drop 30 plus million in one season can HURT teams and the teams owners because it could decimate their rosters? Especially when they don’t have to?

I’m not saying they should do it “just because”

NFL isn’t going to be the only business eating losses due to the pandemic. But sometimes a business needs to eat short term losses to maintain their strength long term. I don’t see how allowing the salary cap to drastically decrease helps the league overall.

I’m just speaking as a fan. I don’t want to see teams including the cowboys having to cut a bunch of players and unable to continue building the roster due to the salary cap taking a massive drop.