The NBA recently signed a deal with television networks for roughly $24 billion dollars, and the first rounds of payouts are coming into effect this upcoming season.
Because this deal has come into play, it has raised the league's salary cap from $70 million to $94 million. One consequence of that is higher salaries to players from top to bottom.
Recently, Mike Conley of the Memphis Grizzlies signed a deal to return to extend his services for $153 million for five years. This is the largest and most lucrative player contract in NBA history, and the perfect example of what raising the salary cap can do in the NBA.
The NFL in comparison makes roughly $13 billion yearly (projected for 2016), which makes it the most lucrative professional sport in the world. NFL players were taken by surprise to see some of monumental contract signings this summer, and even cracked jokes about joining the wrong sport. On average, an NFL player makes $1.9 million per year, while an NBA player makes $5.15 million per year.
Those numbers do not generally add up as to why the NFL profits more money per year, but the players are making less. There are two general reasons why this is so.
NBA and NFL owners receive all league revenues, and distribute the amounts agreed to, in their collective bargaining agreements (CBA).
The first reason NBA players make more money on average than NFL players is this:
- NBA Players receive 51.5% total of all league revenues, according to their Collective Bargaining Agreement with the NBA.
- NFL Players receive 47% total of all league revenues, according to their Collective Bargaining Agreement with the NFL.
Right away, we can see that NBA players get a larger percentage of the money that their league generates on a yearly basis, which naturally pays them higher salaries.
The second and equally important reason NBA players make more on average than NFL players do:
- The NBA has 30 teams that employ a total of 360-450 players.
The number varies, depending on teams having its maximum 15 players, or minimum 12 players roster.
- The NFL has 32 teams that employ 1,696 players.
Along with a lower percentage of revenue, the pot of money is split between 52 players on each team, instead of 15 on an NBA roster.
The NFL's CBA is ongoing until 2020, and there are no opt-out clauses for either side. The players are stuck with the current deal because they signed it. No matter how much NFL league revenue rises under the current agreement, it would have to increase exponentially before NFL players can see the type of money NBA players do, which makes the probability unlikely.
[button width=”full” button size=”bigger” color=”custom” align=”center” textcolor=”#ffffff” texthcolor=”#ffffff” bgcolor=”#8b0000″ link=”https://clutchpoints.com/mike-conley-discusses-contract-believes-players-will-paid-even-2-years/”]NEXT: Mike Conley discusses his contract, believes players will be paid even more in 2 years[/button]
Follow Us
Subscribe