Yesterday, details of a new NFL CBA proposal from Commissioner Roger Goodell were leaked, and now that ESPN has confirmed the story, I would like to talk about how the proposal impacts fans of small market teams. Highlights of the proposed NFL CBA include:
* 48% of all revenue goes to the players
* Players become unrestricted free agents after four years of service
* A rookie wage scale
* Teams must spend close to 100% of the salary cap
NFL Commissioner, Roger Goodell, has proposed a new CBA in an attempt to end the current lockout.
As a small market fan, the point that stands out to me the most in the newly proposed version of the NFL CBA is that the salary floor would be raised from 90% to close to 100%. In order to reach the current salary floor, teams often inflate their salary number by stuffing it with line items such as player bonuses that they often never have to pay. Under the proposed NFL CBA, not only will teams be required to spend close to 100% of the salary cap, they will have to spend 100% of the cap in actual cash paid to players (versus fantasy accounting numbers).
I have heard the argument that this change will actually hurt small market fans because it will cut into team profitability. When this happens, some owners will likely attempt to recoup lost profits in the form of higher ticket prices, or in some cases (i.e. Jacksonville), moving the team. However, in the short-term, the proposed NFL CBA is nothing but a huge win for small market fans. By forcing owners to spend the same amount as each other, small market teams will compete on a truly level playing field. To illustrate my point, let’s take a look at 2009’s team-by-team payrolls (skipping last year’s numbers because it was an uncapped year and salary caps and floors did not apply).
Team 2009 Payroll
New York Giants $ 138,354,866
Miami Dolphins $ 126,383,421
Houston Texans $ 122,258,610
New Orleans Saints $ 121,552,424
Chicago Bears $ 120,672,110
New York Jets $ 120,634,420
Pittsburgh Steelers $ 119,292,960
San Diego Chargers $ 117,458,935
Green Bay Packers $ 113,959,603
Tennessee Titans $ 113,494,050
Carolina Panthers $ 112,963,398
Oakland Raiders $ 111,527,250
Buffalo Bills $ 111,253,126
Arizona Cardinals $ 111,138,646
Baltimore Ravens $ 109,503,397
Jacksonville Jaguars $ 106,879,214
Philadelphia Eagles $ 106,493,095
San Francisco 49ers $ 103,738,952
Indianapolis Colts $ 103,360,985
Denver Broncos $ 101,658,735
Washington Redskins $ 99,953,611
Detroit Lions $ 99,910,434
Minnesota Vikings $ 99,802,010
St. Louis Rams $ 99,707,892
New England Patriots $ 96,913,133
Atlanta Falcons $ 95,062,952
Cleveland Browns $ 93,932,182
Cincinnati Bengals $ 93,840,588
Dallas Cowboys $ 90,340,939
Seattle Seahawks $ 89,075,820
Tampa Bay Buccaneers $ 84,592,822
Kansas City Chiefs $ 81,829,650
While there are some surprises (the Oakland Raiders spent the 12th most money for that?), there are several of the usual small market suspects in the bottom ten including the Minnesota Vikings, Cleveland Browns, Cincinnati Bengals, Tampa Bay Buccaneers, and the Kansas City Chiefs. The Chiefs, who famously cut their payroll to help finance Arrowhead Stadium renovations, were at the bottom of the list for the second consecutive year. Also, eerily channeling their inner-MLB, a team from New York led the NFL in payroll by a wide margin. This disparity is even more revealing when you look at the payrolls from last year’s uncapped season.
The NFL is already the most competitive league in the United States, but imagine if Kansas City was required to spend as much money as New York under the proposed NFL CBA. The Chiefs, who won the AFC West last year with the second lowest payroll in the league, would have had to spend an additional $46 Million in the summer of 2009 (to reach the $128 Million cap that year). I’m pretty sure the Chiefs could have made a run at two or three decent players that were available that summer with $46 Million. Free agents that year included Albert Haynesworth, Terrell Suggs, T.J. Houshmandzadeh, Ray Lewis, and Julius Peppers, just to name a few.
The Chiefs were blown out in their playoff game against the Baltimore Ravens in January, but I have a feeling things would have been different if Terrell Suggs and Ray Lewis were on the other sideline that day. The proposed NFL CBA helps small market fans.
Signed,
Ryan Sleeper+, Online Sports Marketing Guy