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NFLPA demands financial losses spread over next decade


The NFL and the National Football League Players Association (NFLPA) still have a few things to sort out. One of these include the payout of salaries to the players for the upcoming season.

Tom Pelissero of NFL Media reports that the NFL has received from the NFLPA a proposal regarding the economic issues. This proposal relates to the handling of the financial losses in 2020 and the impact of those losses on future salary caps.

The NFLPA wants none of this year’s salaries to be placed in escrow, a flat salary cap for 2021 ($198.2 million), payment of all fully-guaranteed money even if games are canceled, and most significantly, an agreement to spread any 2020 revenue losses over nine seasons, from 2022 through 2030.

Under the Collective Bargaining Agreement (CBA), the 2020 player salaries are already locked in. The two parties have agreed that all money is due and payable the moment the teams play one game. If any of the games are canceled, the two sides acquire an express duty to bargain regarding the impact of lost revenues on the next year’s salary cap.

A restructuring of the salary cap for the 2021 season will have major implications for the league and neither side would want it to get to that point. This could lead teams to have to seriously restructure their rosters, since teams have players under contract at specific salary levels.

It will make sense to spread the expenses brought about by the pandemic to the next decade as things gradually go back to normal. TV deals, ticket and merchandise sales along with the legalized sports betting cash flow will all help to aid this year’s losses.