QB Salary Cap Discussed by Owners

[Flamma]

Correct me if I'm wrong, but even with that roster, Stafford still needed to manage a couple of game winning drives in that SB run.

No argument from me. But at the same time, if that 49ers DB doesn't drop that gift Stafford offered up, I'm not sure the Rams win that championship game. They barely caught up as it is, a pick inside your own territory already down 17-7 might have been the final nail. But with most super bowl runs, there is always going to be luck and heroics involved.

 

[Chasing6]

But you cant have it both ways, it's either the 49ers way (bye Dak, we'll go team first and fit in a QB) or it's Jerry's way (we'll pay our own, inc Dak.....but have nothing left and fill the roster with too many JAG's)




.....and part of that 'Zoo' includes Dak. You can't divorce Dak from Jerry. Which is the reason many fans want that separation, as the same 'ole, gets us so far, but it seems this model has reached it's zenith.

GM Jethro is the one that wants it both ways. That is 100% the problem.

If he wants to attempt to make the Cowboys into being the Ravens, then let Dak and CD go, resign Parsons and get a legit DT and LB. However we know he won't do that. That is not flashy enough for him.

He wants a high flying scoring circus environment. So therefore we have to have an offense that can outscore opponents. Good luck doing that without a QB. We are on QB 19 since Troy and whether we like to admit it our not Troy was on a Dream Team and just the Bus Driver.

 

[Beast_from_East]

Here is an article explaining it:

Simply put, the luxury tax is a system designed to reward teams for staying under a set limit of spending — and punish those that don't.

As mentioned above, a salary cap does exist in the NBA. The exact cap will be decided during the July moratorium (a period when league officials determine the exact figures for the upcoming season), but current estimates project it will be somewhere around $136 million.

Here's where it gets a little confusing. Teams are allowed to use certain exceptions to exceed the salary cap, including bi-annual exceptions, mid-level exceptions, Bird rights, and more. For more information on those, you can read up here.

Teams can use exceptions to exceed the salary cap, often by a lot. But they can only spend so much before they get hit with the luxury tax.

There is an additional luxury tax line separate from the salary cap. This year, it is projected to be set at around $165 million. The further teams go past the luxury tax line, the more fees they will have to pay. The exact fees are determined annually using a complex formula, but you can find the figures from the 2021-22 season below, per HoopsRumors.com.

• $0-5 million above tax line: $1.50 per dollar (up to $7.5 million)
• $5-10 million above tax line: $1.75 per dollar (up to $8.75 million)
• $10-15 million above tax line: $2.50 per dollar (up to $12.5 million)
• $15-20 million above tax line: $3.25 per dollar (up to $16.25 million).
• For every additional $5 million above tax line beyond $20 million, fees increase by $0.50 per dollar.

The penalties are also more severe for teams labeled "repeat offenders." This means they have exceeded the luxury tax line in three out of the last four seasons. Here are the fees for repeat offenders:

• $0-5 million above tax line: $2.50 per dollar (up to $12.5 million)
• $5-10 million above tax line: $2.75 per dollar (up to $13.75 million)
• $10-15 million above tax line: $3.50 per dollar (up to $17.5 million)
• $15-20 million above tax line: $4.25 per dollar (up to $21.25 million)
• For every additional $5 million above tax line beyond $20 million, rates increase by $0.50 per dollar.

Those harsh punishments for teams above the tax line have served as an effective deterrent for reckless spending. Only five teams are projected to exceed the luxury tax line in 2023-24. Those teams are listed below, along with the projected fees they would have to pay.

(All figures taken from Spotrac.)

Team	Payroll	Luxury tax space	Luxury tax fees
LA Clippers	$201.9 million	$-36.8 million	$155.5 million
Golden State Warriors	$181.1 million	$-16.1 million	$48.6 million
Phoenix Suns	$175 million	$-10.1 million	$16.4 million
Boston Celtics	$173.3 million	$-8.3 million	$13.2 million
Miami Heat	$173.1 million	$-8.1 million	$13 million

There is one final wrinkle with the current luxury tax system. As of the 2023-24 season, a new "second apron" will be added that brings another hurdle for teams well over the luxury tax line. Any team that ends up $17.5 million above the luxury tax threshold will face even more severe punishments, including losing its mid-level exception, essentially limiting them to only signing players on minimum contracts.

The NBA is essentially a "soft cap", meaning if you go over then you will have to pay penalties depending on much over you are and if you are a repeat offender or not.

The NFL is a "hard cap", there are no exemptions that allow going over the salary cap for any reason.

So, a luxury tax would not be applicable to the NFL because no team will over exceed the cap. A cap on a position like QB is just how much of the current cap you can allocate to a certain position; it does not change what the overall salary cap is or how a team must still be in compliance with said cap.

 

[Beast_from_East]

So the guys responsible for driving up QB salaries are trying to now place a cap on those salaries? Isn’t that textbook collusion?

Yes, if the owners unilaterally decide none of them will pay a QB more than 20% of the salary cap...............that is collusion.............changes to player compensation must be collectively bargained and written into the CBA.

Furthermore, collusion is grounds for the NFLPA to terminate the current CBA by filing a notice of material breech in Federal Labor Court.

 

[Bobhaze]

I find it humorous that the NFL owners would agree to cap a position players’ earnings for “the good of the game” but would never consider holding the line on out of control ticket prices where the average fan is priced out. Or choosing to share more of their billions equitably.

I wouldn’t mind seeing a cap on QB pay. But only if the owners agreed to cap some of their profits for “the good of the game“ too.

Let’s be honest. An NFL owner has almost zero risk on the line to own a team and has a literal lifetime to earn billions just by purchasing a team. A player on the other hand puts his body and life on the line for a career that on average lasts about 5 years. Most NFL players earn little compared to the other pro sports. I know they do it willingly but without the players there is no NFL product. Their talent makes the game.

 

[Beast_from_East]

It's getting to a point where they may have to blow the whole thing up and start over because I cannot see ownership dipping that much deeper to cover these outrageous salaries that have gone off the rails. Baseball is getting totally out of control with the $600 million plus salaries that are not going to be sustainable in the very near future. Next you are going to witness players demanding shares in teams if the owner wants to sign them. Once players get control of teams it's going to be over in a NY minute.............

I'm sorry, but this makes no sense at all.

The salary cap is determined each year as a percentage of overall league revenue from tickets, TV, media rights, streaming, merchandise, and now gambling money from MGM Grand and Draftkings, ect...

Currently the players receive 48.5% of overall league revenue and this number is then divided by 32 to determine what the league salary cap is for each team. As league revenues go up, like they did this past year, then the salary cap will go up as well. The salary cap increased about 30% from last year due to increased league revenue.

So, how would the owners in the league not be able to cover the cost of player contracts when the salary cap is specifically tied to league revenue? If league revenue goes down, the salary cap goes down. If league revenue goes up, the salary cap goes up. There is even a rookie wage scale to make sure most of the money goes to the vets.

The system, as it is currently designed, is quite good. The NFL model ties a "hard cap" to league revenue and ensures parity by not allowing any teams to circumvent this cap. Furthermore, since the player share of league revenue is less than 50%, there is plenty of money available to the owners to cover the expense of signing players. As a result, the NFL model has resulted in the NFL being the most popular and most lucrative sports league in the entire world with individual teams worth in the billions of dollars.................

There is nothing to blow up and start over, in fact the salary cap is projected to exceed $300 million per team by 2027 according to Spotrac. Keep in mind this only represents 48.5% of overall league revenue !!!!!

 

[Beast_from_East]

I find it humorous that the NFL owners would agree to cap a position players’ earnings for “the good of the game” but would never consider holding the line on out of control ticket prices where the average fan is priced out. Or choosing to share more of their billions equitably.

I wouldn’t mind seeing a cap on QB pay. But only if the owners agreed to cap some of their profits for “the good of the game“ too.

Let’s be honest. An NFL owner has almost zero risk on the line to own a team and has a literal lifetime to earn billions just by purchasing a team. A player on the other hand puts his body and life on the line for a career that on average lasts about 5 years. Most NFL players earn little compared to the other pro sports. I know they do it willingly but without the players there is no NFL product. Their talent makes the game.

Exactly.............this entire discussion is moot anyways, the NFLPA would never agree to position caps because of the precedent that it sets.

QB today, then what, WR needs a cap next year?

Ok, if QB and WR capped, what about the defense? We going to cap what Parsons can be paid next?

Then what about CB, are they starting to get too expensive as well?

You get my point, if I am thinking about this just off the top of my head you can bet the execs at the NFLPA are thinking about this as well. Once you start going down this path where does it stop? That is why there is no chance in hell that the NFLPA would ever agree to something like this.

 

[FVSTONE]

I'm sorry, but this makes no sense at all.

The salary cap is determined each year as a percentage of overall league revenue from tickets, TV, media rights, streaming, merchandise, and now gambling money from MGM Grand and Draftkings, ect...

Currently the players receive 48.5% of overall league revenue and this number is then divided by 32 to determine what the league salary cap is for each team. As league revenues go up, like they did this past year, then the salary cap will go up as well. The salary cap increased about 30% from last year due to increased league revenue.

So, how would the owners in the league not be able to cover the cost of player contracts when the salary cap is specifically tied to league revenue? If league revenue goes down, the salary cap goes down. If league revenue goes up, the salary cap goes up. There is even a rookie wage scale to make sure most of the money goes to the vets.

The system, as it is currently designed, is quite good. The NFL model ties a "hard cap" to league revenue and ensures parity by not allowing any teams to circumvent this cap. Furthermore, since the player share of league revenue is less than 50%, there is plenty of money available to the owners to cover the expense of signing players. As a result, the NFL model has resulted in the NFL being the most popular and most lucrative sports league in the entire world with individual teams worth in the billions of dollars.................

There is nothing to blow up and start over, in fact the salary cap is projected to exceed $300 million per team by 2027 according to Spotrac. Keep in mind this only represents 48.5% of overall league revenue !!!!!

I should have done my homework before I posted what I posted. The NFL is the top dog when it comes to revenues. "The margin of difference between the NFL and other major sports leagues, including the NBA, MLB, and NHL, is an astounding $18 to $20 billion in total revenue. Let’s break this down: while the NBA pulls in an estimated $12 billion and MLB about $14 billion, the NFL consistently rakes in a whopping $25 billion annually." It appears that the NFL could easily increase each team's cap without blinking an eye..................

 

[Chasing6]

I'm sorry, but this makes no sense at all.

The salary cap is determined each year as a percentage of overall league revenue from tickets, TV, media rights, streaming, merchandise, and now gambling money from MGM Grand and Draftkings, ect...

Currently the players receive 48.5% of overall league revenue and this number is then divided by 32 to determine what the league salary cap is for each team. As league revenues go up, like they did this past year, then the salary cap will go up as well. The salary cap increased about 30% from last year due to increased league revenue.

So, how would the owners in the league not be able to cover the cost of player contracts when the salary cap is specifically tied to league revenue? If league revenue goes down, the salary cap goes down. If league revenue goes up, the salary cap goes up. There is even a rookie wage scale to make sure most of the money goes to the vets.

The system, as it is currently designed, is quite good. The NFL model ties a "hard cap" to league revenue and ensures parity by not allowing any teams to circumvent this cap. Furthermore, since the player share of league revenue is less than 50%, there is plenty of money available to the owners to cover the expense of signing players. As a result, the NFL model has resulted in the NFL being the most popular and most lucrative sports league in the entire world with individual teams worth in the billions of dollars.................

There is nothing to blow up and start over, in fact the salary cap is projected to exceed $300 million per team by 2027 according to Spotrac. Keep in mind this only represents 48.5% of overall league revenue !!!!!

The system sounds great but it is definitely not depression proof.

 

[KingCorcoran]

I should have done my homework before I posted what I posted. The NFL is the top dog when it comes to revenues. "The margin of difference between the NFL and other major sports leagues, including the NBA, MLB, and NHL, is an astounding $18 to $20 billion in total revenue. Let’s break this down: while the NBA pulls in an estimated $12 billion and MLB about $14 billion, the NFL consistently rakes in a whopping $25 billion annually." It appears that the NFL could easily increase each team's cap without blinking an eye..................

The formula for increasing the cap is built in to the CBA. Owners are not going to increase it without a concession from the players’ union of equal value. No quarterback salary cap will be less than $60 million AAV so gutless owners that have not done so are still going to be subject to monstrous salaries to quarterbacks. Fans need to stop deluding themselves with ignorant scenarios. The owners are making money and if they think quarterbacks are important they will have to pay them lots of money. You can judge how important an owner thinks a quarterback is by how much they pay them.

 

[pansophy]

Yeah but you have teams like the Browns and Jags that ruin it for everyone else.

I don't think its really just small market teams overpaying. A few RBs got overpaid and GMs just said that they weren't going to sign deals like that for a RB. People just get desperate for QBs, but a lot of QBs can look good with a strong team around them.