There has been a wave of cautious optimism about the CBA negotiation over the last few weeks. Oowners met as a group last week to get everyone on the same page as to how the negotiations were going and followed that up with another round of talks with the players. While both sides are under a court-mandated blackout, reports have trickled out that there wasn’t much resistance from ownership and while the players don’t love the new deal, they will live with it.
Follow that up with reports coming out that another round of talks will be held in Boston/Minnesota and it’s understandable that NFL fans are happy to see significant progress being made. Amidst all this optimism, some aspects of the new deal have been leaked out. Will this change the way the Packers do business?
- Players will earn somewhere around 48% of revenue: Perhaps the biggest roadblock between the owners and the players is how much of the pie everyone gets.
- Effect on the league: Some teams will definitely be hit harder than other teams; while Jerry Jones and the Cowboys probably won’t be affected that much due to their massive profit margins, small market teams such as the Jacksonville Jaguars could feel the financial pressure of keeping up with the rest of the league.
- Effect on the Packers: As a community owned/non-profit organization, the Packers fiscal responsibilities have always been a little different from the rest of the league. Other teams have owners who can move profits and assets to other ventures or simply take profits for themselves; for instance there have been reports of the Glazer family using the profits from the Tampa Bay Buccaneers to cover for the financially struggling Manchester United, which is great for the Glazer family but terrible for Bucs fans. The Packers on the other hand by default have to put all their profits back into the team or into charities.
- The cap floor will be higher: There are rumors that teams will be required to spend somewhere in the 90-95% of their salary cap every year. Salary Cap calculations are also to be simplified with less “dead money” contributing to the cap.
- Effect on the league: Several notorious penny-pinching teams such as Carolina Panthers are going to have to open their checkbooks in order to get above the salary cap floor. Again smaller market teams may feel more financial stress with having to put so much money into player’s salaries.