How the NFL Salary Cap Works - The Numbers Behind_ The NFL Salary Cap
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How the NFL Salary Cap Works - The Numbers Behind: The NFL Salary Cap
Ose Okojie
College of Art and Sciences, Howard University
HHPL 221 Budget & Finance
Dr. Livingstone
December 6th, 2023
1
Content
This video discusses how the new NFL CBA has affected team strategies, putting a greater
emphasis on young, cost-effective players over elite quarterbacks to build a roster. There are
several significant changes in the new CBA, including a higher minimum salary, an additional
game, and two new playoff games, with a focus on negotiating the 17th game and if there should
even be that many games in such a contract and injury-prone sport. Notably, players' opinions are
divided, with some emphasizing the positive aspects of TV and new media negotiations, such as
increased minimum salaries and the potential growth of revenue share. Other players express
concern, including Green Bay Packers Hall of Fame quarterback Aaron Rodgers, who is
dissatisfied with perceived concessions from the owner.
Within the player community, opinions on the new NFL CBA vary significantly. While some
players welcome the positive aspects, such as a notable 20% increase in minimum salaries and
the potential for a larger share of revenue through TV and new media negotiations, discontent
also exists. The debate extends beyond financial considerations, with players divided over the
potential risks and benefits associated with the new agreement. Notably, discussions revolve
around issues like salary disparities between established and emerging players and the
contentious expansion of the regular season schedule. Rather than simply being an ideological
difference, these concerns extend beyond ideology to concern about the possibility of lockouts
and the impact these changes will have on the players' well-being. Players are uncertain about
whether the CBA's roster expansions, reduced practice time and increased practice squad will
adequately address their concerns and needs, despite CBA mandates. Questions remain about the
true impact of the CBA alterations as teams adapt to the mandated changes, causing the
landscape of professional football to remain uncertain.
Understanding
After watching the video, I gained a greater understanding of the details of how the CBA
introduced to the NFL works. What strikes me most is the players' resistance to the idea due to
concerns about increased physical strain as the NFLPA's decision to extend the regular season,
and the negotiations at the NFLPA leadership level have been notably challenging. However,
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what becomes evident is the astute strategy employed by the NFLPA to secure tangible benefits
for players. From 2021 onwards, players will receive a minimum of 48% of league revenue,
starting at 47% this year and increasing to 47% from 2022 onwards. The prospect of additional
revenue, approximately $150 million from the playoff expansion, serves as a concrete incentive
for players to accept the extended season, creating a palpable trade-off for their physical
exertions.
As I looked into the details of the financial aspects in the video, it became clear why some
players might reconsider their initial resistance to expanding the NFL season. Players have a
compelling financial opportunity with higher shares of league revenue and a "media kicker"
linked to TV contract sizes. Especially beneficial are the increases in minimum salaries for
lower-earning players, who comprise approximately 60% of the NFL. Additionally, the new
Collective Bargaining Agreement (CBA) demonstrates the multifaceted nature of the contract by
including elements such as revenues from the Los Angeles Stadium project and legal gambling
operations. In essence, I see players balancing the physical demands of an extended season with
the financial gains outlined in their contracts. This sophisticated negotiation strategy isn't only in
favor of high-profile players but also caters to those on minimum-salary contracts.
Reflection
When watching this video as someone who isn't familiar with the NFL landscape, I thought that
it was intriguing to see how they plan to implement their new CBA. What shocked me the most
was how there is a clear side of players that outright think that the CBA will do more harm then
good, and on the other side of the spectrum there are players that think that the CBA will benefit
the players in a greater positive light as a league. I saw that it was clear from the details that the
NFLPA takes a fair approach to negotiations, benefiting both high-profile and lower-income
players and trying to really be inclusive to all types of players in the NFL. As such, by providing
a nuanced perspective really opened my eyes to how the extended season becomes a more
palatable option for players across the board.
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References
Dan Graziano, senior N. national reporter. (n.d.).
NFL CBA approved: What players get in new
deal, how expanded playoffs and schedule will work
. ESPN.
https://www.espn.com/nfl/story/_/id/28901832/nfl-cba-approved-players-get-new-deal-
how-expanded-playoffs-schedule-work
YouTube. (2020).
YouTube
. Retrieved December 8, 2023, from https://www.youtube.com/watch?
v=uj61x2yOL-s.