Cbz40
The Grand Poobah
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Pro Football Talk:
CBA DEAL COMING?
As the hand wringing begins regarding the absence of a new CBA, we're hearing quiet but clear indications of growing optimism that a new deal will be done in the near future.
Per a league source, the NFL and the NFLPA have reached an agreement regarding the contents of so-called "Defined Gross Revenues," which provides the basis for determining the total team-by-team salary cap.
The thrust of the negotiations at this point, we're told, is the specific percentage of the DGR that will be earmarked for player salaries.
Also, a source tells us that the negotiations aimed at ironing out player compensation are proceeding even though no agreement has been reached among owners regarding the local revenues that the NFL franchises don't share. If, as we assume, the new DGR formula includes some of the unshared revenues and if the owners don't agree to expand their current practice of cutting up 32 equal pieces of Ben Franklin pie, teams with lower revenues will end up with an inflated salary cap due to the fact that teams with higher revenues will help to push the number for everyone up. Likewise, teams with the higher local revenues will enjoy a salary maximum that is nudged lower down by the revenues of the other teams.
And that's why, as we've previously explained, the real focus of the talks should be the minimum team salary, not the maximum. Absent expanded revenue sharing, franchises with lower total revenues might choose to implement their own artificial player spending limit in order to enhance, or preserve, the total margin. To guard against abuses in that regard, the NFLPA needs to insist on pushing the spending floor as high as possible.
CLARIFICATION ON 30 PERCENT RULE
Regarding Wednesday's item on the 30 percent rule, a league source who has been involved in the calculation of contracts pursuant to this staple of the final capped year advises us that included within the formula for determining the maximum salary in 2007 and beyond is the prorated portion of the signing bonus.
Using the example presented on Wednesday, a four-year deal with a $1 million signing bonus and a salary of $550,000 can increase each year thereafter by 30 percent of the sum of the salary and the $250,000 proration that applies to the 2006 cap. In other words, the maximum salary increase in 2007 is 30 percent of $800,000, or $240,000.
So the max salary under this scenario in 2007 is $790,000, and it moves to $1.03 million in 2008, and $1.27 million in 2009.
CBA DEAL COMING?
As the hand wringing begins regarding the absence of a new CBA, we're hearing quiet but clear indications of growing optimism that a new deal will be done in the near future.
Per a league source, the NFL and the NFLPA have reached an agreement regarding the contents of so-called "Defined Gross Revenues," which provides the basis for determining the total team-by-team salary cap.
The thrust of the negotiations at this point, we're told, is the specific percentage of the DGR that will be earmarked for player salaries.
Also, a source tells us that the negotiations aimed at ironing out player compensation are proceeding even though no agreement has been reached among owners regarding the local revenues that the NFL franchises don't share. If, as we assume, the new DGR formula includes some of the unshared revenues and if the owners don't agree to expand their current practice of cutting up 32 equal pieces of Ben Franklin pie, teams with lower revenues will end up with an inflated salary cap due to the fact that teams with higher revenues will help to push the number for everyone up. Likewise, teams with the higher local revenues will enjoy a salary maximum that is nudged lower down by the revenues of the other teams.
And that's why, as we've previously explained, the real focus of the talks should be the minimum team salary, not the maximum. Absent expanded revenue sharing, franchises with lower total revenues might choose to implement their own artificial player spending limit in order to enhance, or preserve, the total margin. To guard against abuses in that regard, the NFLPA needs to insist on pushing the spending floor as high as possible.
CLARIFICATION ON 30 PERCENT RULE
Regarding Wednesday's item on the 30 percent rule, a league source who has been involved in the calculation of contracts pursuant to this staple of the final capped year advises us that included within the formula for determining the maximum salary in 2007 and beyond is the prorated portion of the signing bonus.
Using the example presented on Wednesday, a four-year deal with a $1 million signing bonus and a salary of $550,000 can increase each year thereafter by 30 percent of the sum of the salary and the $250,000 proration that applies to the 2006 cap. In other words, the maximum salary increase in 2007 is 30 percent of $800,000, or $240,000.
So the max salary under this scenario in 2007 is $790,000, and it moves to $1.03 million in 2008, and $1.27 million in 2009.
