Salary cap tipping point?

[BillyBates]

Is there going to be a salary cap tipping point? the idea behind it was fair and well thought out but the future rate amounts of expenditure cant remain solvent. I like most here have been reading about budgeting our cap space, potential free agents and retaining our best current players. the amount of the NFLs cap space is becoming an astronomic figure imo. in 24 years it has risen about 5x.
1994-34.608m
2004-80.582m
2014-133m
2018-177.2m

 

[JD_KaPow]

I don't understand the question. Why do you think the "future rate amounts of expenditure cant remain solvent?"

The salary cap is tied to league revenues: players receive between 47 and 48.5% of league revenues. So if the players are making 5x as much as they did in 1994, the owners are making 5x as much as well. There's just that much money in the game.

If revenues increase more slowly, so will the salary cap. If revenues were to drop, so would the salary cap. That's just not what's happened.

Also, remember that the salary cap is a way to control player salaries. If there were a true free market in the NFL, players would make more money overall than they do now.

 

[jrumann59]

The Salary floor has pushed salaries higher also for everyone because Teams like the Jags, Browns, Begals and such underspent for so long they are now more willing to overpay for average talent and that affects all talent.

 

[BillyBates]

I don't understand the question. Why do you think the "future rate amounts of expenditure cant remain solvent?"

The salary cap is tied to league revenues: players receive between 47 and 48.5% of league revenues. So if the players are making 5x as much as they did in 1994, the owners are making 5x as much as well. There's just that much money in the game.

If revenues increase more slowly, so will the salary cap. If revenues were to drop, so would the salary cap. That's just not what's happened.

Also, remember that the salary cap is a way to control player salaries. If there were a true free market in the NFL, players would make more money overall than they do now.

My question is indeed solvency.at what point will the tipping point be reached in anyones opinion if ever ? 300m-400m. the revenue being generated has slowed. the NFL was down millions in TV viewers. take MNF for one. where is the cap ceiling in essence? advertising, merchandise, tickets. a 1 hour game has turned into 3 because of commercial advertising alone. salaries will begin to stagnate or decrease as revenue does. or would the the 48.5% increase to make up the difference?

 

[Longboysfan]

The only limit that is Salary CAP set is where the Networks pay for the right to broadcast.
The NFL owners - Jerry in particular - have set in escalators into the TV contracts.
So the CAP goes up at a set rate each year.

When the networks see the viewership decline or stagnate the $$$$ they pay will do the same.

Those contracts will come up shortly.

 

[DFWJC]

Is there going to be a salary cap tipping point? the idea behind it was fair and well thought out but the future rate amounts of expenditure cant remain solvent. I like most here have been reading about budgeting our cap space, potential free agents and retaining our best current players. the amount of the NFLs cap space is becoming an astronomic figure imo. in 24 years it has risen about 5x.
1994-34.608m
2004-80.582m
2014-133m
2018-177.2m

Because its based on league revenues, insolvency does not come into play.
Now if the question is whether or not it will eventually go down, thats worth asking. Will depend alot on TV deals

 

[BillyBates]

Because its based on league revenues, insolvency does not come into play.
Now if the question is whether or not it will eventually go down, thats worth asking. Will depend alot on TV deals

We are seeing the highest paid players in NFL history. at some future point in time ether the 48.5% league revenue will need to be renegotiated to an 50-50 split? can you or anyone here imagine splitting the profits of your company with the owners?

 

[Aerolithe_Lion]

We are seeing the highest paid players in NFL history. at some future point in time ether the 48.5% league revenue will need to be renegotiated to an 50-50 split? can you or anyone here imagine splitting the profits of your company with the owners?

NFL players aren’t just the employees, they’re the product. What production company doesn’t spend an enormous amount of its budget on product costs?

 

[BillyBates]

NFL players aren’t just the employees, they’re the product. What production company doesn’t spend an enormous amount of its budget on product costs?

not saying they wont or dont, just at some point the salaries we are seeing being contracted today will certainly lessen over time.

 

[Aerolithe_Lion]

not saying they wont or dont, just at some point the salaries we are seeing being contracted today will certainly lessen over time.

I disagree entirely. They will continue to inflate relative to the income of the nfl. 50m$ a year for a QB Will happen within the next 15 years.

 

[John813]

As long as the NFL makes billions upon billions and more than the previous year the salary cap will continue to rise.

Some expected the TV deals for TNF to drop a year or so ago. It didn't.

Ticket prices, TV deals, merch all continue to rise in $, and so will the cap.

 

[Hoofbite]

My question is indeed solvency.at what point will the tipping point be reached in anyones opinion if ever ? 300m-400m. the revenue being generated has slowed. the NFL was down millions in TV viewers. take MNF for one. where is the cap ceiling in essence? advertising, merchandise, tickets. a 1 hour game has turned into 3 because of commercial advertising alone. salaries will begin to stagnate or decrease as revenue does. or would the the 48.5% increase to make up the difference?

Why would the player's share increase with decreased overall revenue?

If revenues decrease, teams will have less cap space. Players will earn less. The end.

 

[atlantacowboy]

My question is indeed solvency.at what point will the tipping point be reached in anyones opinion if ever ? 300m-400m. the revenue being generated has slowed. the NFL was down millions in TV viewers. take MNF for one. where is the cap ceiling in essence? advertising, merchandise, tickets. a 1 hour game has turned into 3 because of commercial advertising alone. salaries will begin to stagnate or decrease as revenue does. or would the the 48.5% increase to make up the difference?

The cap can go up or down. It keeps going up b/c the revenue keeps increasing. The % of the pie does not change. That is negotiated in the CBA.

 

[Nightman]

They may have to increase the number of roster spots to keep up with the ever increasing Salary Cap

If they limit the QB to 15% of the cap the other guys should see a raise

Plus rookies and young players need to get paid more

Right now 27 players or 1/2 the team only get 10% of the cap ..... that has to change