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BigKen
Day to Day
The NFL, The NFLPA and the NFL Owners have been meeting on Skype and Zoom and their telephones have been been needing a recharge at least twice a day.
Covid will without a doubt have a huge effect on the NFL season, IF and that's big if, they can actually pull it off.
First, having the 2020 season cancelled might be the best scenario for the players and the league owners. They could count the season toward seniority and and hopefully not miss a beat and keep everything exactly as it is now. The problem will be fitting in the 2021 Draft if it's held and the players. They are supposedly discussing increasing the Practice Squad of each team to 20 players for a three year period and those players would be eligible for a move to the NFL team twice during a season. They would be a permanent player after the second call up.
IF THEY PLAY...............................
Players receive 48% of the total revenues.
TV Contracts
NFL Network & Product Sales
AR (Associated Revenues) Ticket Sales, Parking, Concessions
The Salary Cap for teams is based on these revenues and 2020 could be devestating. The estimates by financial experts from all three members of the talks say that playing a 2020 season could create the worst financial storm the league has ever seen. It appears that the Cap could take a $60M hit for 2021and if a vaccine isn't created, the same problem would carry into 2022.
Teams give out contracts anticipating that the Cap will increase by 10% annually. Teams that have monster contracts that are in effect could be the worst hit. The league and the NFLPA are warning owners not to trying to circumvent the a future hit because every team will be required to meet the cap and there will be no contract exceptions. If the cap does take a $60M hit, the three sides are discussing a three year plan in an attempt to ease the hit. The plan that appears to be most favored is a reduction to $168.2M in 2021, $153.2M in 2022 and $135.2 in 2023. If everything gets back to normal in 2022 then the 2022 Cap would hold and the 2024 Cap would be recalculated to a full cap.
If the cap does take any kind of hit, it will effect contracts and older players. The expected $50M Mahomes contracts will be impossible because the Chiefs would be looking at giving Mahomes 38% of the team's available money. The Franchise salaries will also be affected by approx. 35%.
If the owners, league and NFLPA agree to a one time one year hit of $60M to the cap, only four teams will be under the cap in 2021. There's no question that players will have to renegotiate contracts, teams will have to dump contracts and worst of all, teams will cut older, experienced players with a big contracts.
As one person close to these talks said, this is storm is a financial tropical storm right now but a major financial hurricane is brewing and no one will be able to hide or get away from it. Putting their heads together and trying to deal with it now will make the clean up much easier.
One owner said that the virus will force teams to physically change the stadiums at a huge cost. In his words, "Every other row will have to be made inaccessible. Every usable seat will have two unusable seats between them. Every seat will require sterilization after every game.That will be the 25% rule for attendance and we'll have to pay to upgrade once the virus has been controlled, if that ever happens."
Covid will without a doubt have a huge effect on the NFL season, IF and that's big if, they can actually pull it off.
First, having the 2020 season cancelled might be the best scenario for the players and the league owners. They could count the season toward seniority and and hopefully not miss a beat and keep everything exactly as it is now. The problem will be fitting in the 2021 Draft if it's held and the players. They are supposedly discussing increasing the Practice Squad of each team to 20 players for a three year period and those players would be eligible for a move to the NFL team twice during a season. They would be a permanent player after the second call up.
IF THEY PLAY...............................
Players receive 48% of the total revenues.
TV Contracts
NFL Network & Product Sales
AR (Associated Revenues) Ticket Sales, Parking, Concessions
The Salary Cap for teams is based on these revenues and 2020 could be devestating. The estimates by financial experts from all three members of the talks say that playing a 2020 season could create the worst financial storm the league has ever seen. It appears that the Cap could take a $60M hit for 2021and if a vaccine isn't created, the same problem would carry into 2022.
Teams give out contracts anticipating that the Cap will increase by 10% annually. Teams that have monster contracts that are in effect could be the worst hit. The league and the NFLPA are warning owners not to trying to circumvent the a future hit because every team will be required to meet the cap and there will be no contract exceptions. If the cap does take a $60M hit, the three sides are discussing a three year plan in an attempt to ease the hit. The plan that appears to be most favored is a reduction to $168.2M in 2021, $153.2M in 2022 and $135.2 in 2023. If everything gets back to normal in 2022 then the 2022 Cap would hold and the 2024 Cap would be recalculated to a full cap.
If the cap does take any kind of hit, it will effect contracts and older players. The expected $50M Mahomes contracts will be impossible because the Chiefs would be looking at giving Mahomes 38% of the team's available money. The Franchise salaries will also be affected by approx. 35%.
If the owners, league and NFLPA agree to a one time one year hit of $60M to the cap, only four teams will be under the cap in 2021. There's no question that players will have to renegotiate contracts, teams will have to dump contracts and worst of all, teams will cut older, experienced players with a big contracts.
As one person close to these talks said, this is storm is a financial tropical storm right now but a major financial hurricane is brewing and no one will be able to hide or get away from it. Putting their heads together and trying to deal with it now will make the clean up much easier.
One owner said that the virus will force teams to physically change the stadiums at a huge cost. In his words, "Every other row will have to be made inaccessible. Every usable seat will have two unusable seats between them. Every seat will require sterilization after every game.That will be the 25% rule for attendance and we'll have to pay to upgrade once the virus has been controlled, if that ever happens."