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Old 08-11-2012, 11:34 PM   #1
GoFor7
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Default Salary cap might not rise in 2014

I found a few articles arguing that the salary cap will remain mostly flat through 2014 and 2015. If this is true, that's won't be good for the Steelers in the next few years.


http://espn.go.com/nfl/story/_/id/7744901/nfl-soaring-revenues-coincide-salary-cap-growth


http://www.thephinsider.com/2012/3/2...e-dramatically


http://espn.go.com/blog/nflnation/post/_/id/56191/speaking-too-soon-on-2014-salary-cap-spike
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Old 08-12-2012, 02:07 AM   #2
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Default Re: Salary cap might not rise in 2014

the NFL signed a huge tv deal. i thought the cap was based on owner profits...

NFL Signs Nine-Year Extensions of Television Contracts With CBS, FOX, NBC

Quote:
The National Football League, the U.S.’s most-watched sport, will generate about 60 percent more revenue through 2022 from nine-year contract extensions with CBS Corp. (CBS), News Corp. (NWSA)’s Fox unit and Comcast Corp. (CMCSA)’s NBC.
Quote:
ESPN said Sept. 8 it extended its agreement with the NFL for eight years, giving the Disney unit “Monday Night Football” through the 2021 season. The deal was valued at $1.9 billion a year, or about 73 percent more than the Bristol, Connecticut-based network has been paying, the New York Times reported.
Quote:
Labor Peace

NFL Commissioner Roger Goodell -- who along with the three broadcast networks declined to reveal financial terms -- said the 32-team league’s new decade-long labor agreement signed after a four-month offseason lockout helped it to negotiate the longest television deals in league history.

“That kind of stability gave us the ability to get these contract extensions,” Goodell told reporters yesterday. “The players deserve great credit.”

Under the terms of the new collective bargaining agreement, the players’ share of broadcast revenue climbs to about 55 percent from around 50-51 percent under the prior deal,
Ganis said. The NFL has annual revenue in excess of $9 billion.

“Whether they did that intentionally or not, the players have been very smart,” Ganis said. “The TV deal is phenomenal for them.”
http://www.bloomberg.com/news/2011-1...ough-2022.html
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Old 08-12-2012, 11:33 AM   #3
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Default Re: Salary cap might not rise in 2014

From the articles I posted, it is said that just because revenue climbs up from the TV networks does not mean the salary cap will increase. Google "2014 nfl salary cap," there are a lot of articles out there explaining why this spike may not happen.
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Old 08-12-2012, 03:02 PM   #4
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Default Re: Salary cap might not rise in 2014

I would think the salary cap would effect each team the same....
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Old 08-12-2012, 03:17 PM   #5
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Default Re: Salary cap might not rise in 2014

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Originally Posted by fastscirocco View Post
I would think the salary cap would effect each team the same....
Depends on how much space the team has. Teams like the Bengals and the Buccaneers have tens of millions of dollars in cap space, so it would not affect them. Teams like the Steelers, Giants, Jets, Cowboys, and who ever else spends to the ceiling will be hurt if the NFL's salary cap remains flat through 2015.

The argument seems to be weather or not the increased revenue from the new TV deal will have an immediate effect on the cap causing a spike or a steady growth over the next few years. If the cap remains flat come 2014 then DeMaurice Smith is going to have to answer to some very angry players.
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Old 08-12-2012, 03:25 PM   #6
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Default Re: Salary cap might not rise in 2014

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So, according to Kraft and Bloomberg, the NFL's revenue increase will not be a large jump from one year to the next, but a gradual increase, with the final annual rate being much larger than the current rates.
And, there are more troubles on the horizon if this gradual increase is correct. According to the New England Sports Network, the NFL Players Association has already informed players and agents that the salary cap will, "see 'significant growth' in 2014 'and beyond.'"
Are the owners and players already heading toward labor strife, just a few years into the new 10-year CBA? Maybe the Blogging the Boys article puts it best:
http://www.thephinsider.com/2012/3/2...e-dramatically
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Old 08-12-2012, 03:33 PM   #7
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Default Re: Salary cap might not rise in 2014

Yes, I know the NFLPA expects a jump. That may not happen though, hence why I said the players will be pissed at Smith. Wouldn't exactly be the first time the NFLPA was wrong.
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Old 08-12-2012, 03:57 PM   #8
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Default Re: Salary cap might not rise in 2014

Most the top teams were counting on the cap raising by the way the contracts were structured.
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Old 08-12-2012, 04:53 PM   #9
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Default Re: Salary cap might not rise in 2014

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Originally Posted by GoFor7 View Post
Yes, I know the NFLPA expects a jump. That may not happen though, hence why I said the players will be pissed at Smith. Wouldn't exactly be the first time the NFLPA was wrong.
so according to the new CBA. player salaries are supposed to increase to 55 percent. so if the cap doesn't increase how will the players get the increase ? i'm assuming there'd be something written into the contract that says when the increase will take affect.
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Old 08-12-2012, 07:41 PM   #10
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Default Re: Salary cap might not rise in 2014

Quote:
The average of the current deal is $1.93 billion. By the end of the new deal, the average will be $3.1 billion. But it is a gradual progression, and the NFL won't reach that top revenue number until 2022.

So in 2014, the league will shift from the high point of the old deal to the low point of the new one. Without getting specific, Lewand said: "There is not a big jump."
http://espn.go.com/blog/nflnation/po...lary-cap-spike

Quote:
After having flat caps of $120.375 million in 2011 and $120.6 million in 2012, the NFL management council told clubs Tuesday that the cap won't increase much in the next three years. In fact, the 2015 cap may go up to only $122 million, according to management council projections.

Although the cap numbers for 2013, 2014 and 2015 still can be negotiated, projections point to very little increase. The cap may rise by only $300,000 in 2013, going to around $120.9 million. Even though increased network television money is coming in 2014, the cap is projected to go only into the $121-plus million range.
Quote:
If that sounds amazing, consider this: The salary cap in 2009 was $123 million, higher than what is projected to be in 2015.

Where did all the salary-cap money go?

The answer resides in what has happened during the first two seasons of the new collective bargaining agreement. When the management council and the NFL Players Association ran the numbers from the percentage of money going to the players, the salary cap in 2011 was supposed to be less than $120 million. It could have been as low as around $116 million.

To put more salary money into free agency last season, the union was able to shift some of the benefit money into salary money. The result was a $120.375 million cap in 2011.

According to sources, the salary cap was supposed to be around $113.5 million this year. With 427 free agents, a huge cap decrease would have depressed the market and given almost too much contract leverage to teams. The union worked out a deal with the owners to trade off $7.1 million in benefit dollars per team from future years to have a $120.6 million salary cap.
http://espn.go.com/nfl/story/_/id/77...ary-cap-growth
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