NFL: How to Deal With Revenue Losses Before the Start of the Season

NFL: How to Deal With Revenue Losses Before the Start of the Season

The cancelation of sports across the world is still hitting us very hard. The NBA, NCAA Basketball, and NHL were heading into the stretch runs of their seasons while MLB and College Baseball never even got underway due to Covid-19. Two of those leagues are working on getting back to business, but there are still logistics that need to be worked out. The NFL now finds itself on the shelf in the war of revenue loss due to the pandemic.

Even though training camps are not set to open until late July, the NFL and NFLPA are looking to get a plan underway to deal with the sure loss of a lot of revenue due to the possibility of playing with no fans in the stands. This will need to get done before the season begins and there is much work to do.

The salary cap will be at the forefront of negotiations as it is based on expected revenue. The cap is currently at $198.2 million for this year, but with the expected loss for revenue going forward, it will also affect the 2021 season as well.

Teams are expected to lose between $40-$80 million depending on whether fans will be allowed in some stadiums or not. This will result in an estimated loss of about $5 billion in revenue for the league and that has to be factored in when it comes time to negotiate. The idea is to keep the cap where it is or even raise it since the league does not want to see it drop. This would affect TV deals and player contracts going forward.

This could take the league to a place MLB now finds itself. The NFLPA would have to consider players taking a pay cut on their base salaries. This is something the players will, more than likely, be unwilling to do just like their baseball counterparts.

Another option for teams would be to cut non-guaranteed salaries of veterans that could then find themselves on the chopping block. This will make it hard for players to turn down pay cuts now as it will affect what teams do next year. Of course, the actual numbers will have to be figured out to see how big of a cut teams will have to make.

There is still time to work things out and come up with a plan that works for both sides. But, the NFL and NFLPA will have to work together to avoid a possible fiasco that now threatens the MLB season.

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