Each article seems to produce new questions from you the reader, so I thought I’d try to answer some of them in this forum. If you are thinking that the situation is a mess and hard to grasp, I agree 100%.
Q. Why does the NFLPA say that the owners have never explained why this current CBA has been terminated?
A. The decision has been explained repeatedly at the bargaining table and publicly. The CBA, which does not adequately recognize the costs of generating revenue, does not afford the clubs sufficient incentives to invest in the future of the game.
Q. Are owners asking veteran players to take an 18 percent pay cut?
A. Absolutely not. Between reductions in outrageous salaries for rookies and anticipated increases in revenue, current players should not see their compensation decline under the clubs’ proposal. The goal is to create a system that will allow for growth in revenue and player compensation.
Q. When does the CBA expire if there is no extension of the agreement?
A. In March of 2011.
Q. Will there be a college draft in 2011?
Q. Is the NFL a non-profit organization as NFLPA executive director DeMaurice Smith has stated?
A. The NFL League Office is a not-for-profit organization. The NFL League Office receives funding from the 32 member clubs to cover its non revenue overhead activities such as office rent, League Office salaries and game officiating. In addition, the NFL League Office collects revenues on behalf of the 32 member clubs and distributes those revenues to the clubs. All national revenues (e.g. broadcast TV payments) collected and paid to the member clubs, as well as local revenues earned individually by the clubs, are subject to tax at the club level. This structure is not unlike that of any partnership where the net earnings of the partnership are passed through to the partners where it is taxed.
goodellsmithQ. What is the “Final League Year” in the current agreement?
A. The “Final League Year” is the term used in the CBA to refer to the last year of the agreement. Without a further extension of the CBA, the “Final League Year” would be the 2010 season, which begins on March 5.
Q. What would be the differences between the 2010 and any other “League Year?”
A. The principal differences are that in the “Final League Year” (1) there is no salary cap; (2) there is no minimum team payroll; (3) there are substantial additional restrictions on player free agency; and (4) there are reductions in active player benefits.
Q. Will current player benefits be affected in 2010 if there is no new CBA?
A. The union agreed that in the Final League Year, clubs would be relieved of their obligation to fund numerous benefit programs for current players. Examples include second career savings (401K), player annuity, severance pay and performance-based pay. The total league-wide contributions to such plans in 2009 were in excess of $325 million or more than $10 million per club.
Q. Are retired player benefits affected in the Final League Year (2010 season)?
A. Commissioner Goodell has stated in a letter to the NFL Alumni Association that there will be no reduction in pension or disability payments to retired players during the Final League Year (2010).
Q. What determines whether a player is an unrestricted free agent in the Final League Year (2010 season)?
A. In capped seasons, a player whose contract has expired becomes an unrestricted free agent if he has four or more accrued seasons. In the Final League Year (2010 season), a player whose contract has expired becomes an unrestricted free agent only if he has six or more accrued seasons. An unrestricted free agent is free to sign with any club with no compensation owed to his old club.
Q. What determines whether a player is a restricted free agent in the Final League Year?
A. In capped seasons, a player whose contract expires becomes a restricted free agent if he has three accrued seasons. In the Final League Year (2010 season), a player whose contract expires becomes a restricted free agent if he has three, four or five accrued seasons.
Q. In addition to the right to designate a franchise (or transition) player each capped year, will clubs be able to designate additional players if 2010 is uncapped?
A. Yes, one additional player can be tagged. In capped years, a club may designate a franchise player or a transition player. In the final league year (2010), a club may designate one additional transition player.
Q. What is the Final Eight Plan?
A. During the Final League Year (2010 season), the eight clubs that made the Divisional Playoffs in the previous season (Arizona, Baltimore, Dallas, Indianapolis, Minnesota, New Orleans, New York Jets, and San Diego) have restrictions on their ability to sign unrestricted free agents from other clubs. Those clubs are limited in the number of free agents that they may sign; the limit is determined principally by the number of their own free agents signing with other clubs.
Q. Is there an Entering Player Pool in the Final League Year?
A. The CBA provides that the league has the unilateral right to keep or eliminate the rookie pool in the Final League Year (2010 season). There has been no decision to eliminate the rooke pool.
Q. Is there a Minimum Team Salary in the Final League Year (2010 season)?
A. No. (The Minimum Team Salary in 2009 was $107,748,000.)
Q. Are there individual player minimum salaries in the Final League Year (2010 season)?
Q. Do any player contract rules from capped years remain in place for the Final League Year?
A. Yes, some rules like the “30% increase rule” are still in effect in the Final League Year (2010 season) for player contracts signed in capped years. That rule restricts salary increases from 2009 to 2010. For example: a player with a $500,000 salary in 2009 would be limited to annual salary increases of $150,000 ($500,000 x 30%) beginning in 2010.
Unless something unexpected happens (fingers crossed) I DO NOT expect a resolution to the issues that separate the players and the owners. If you are thinking that the 2011 season may be in jeopardy, you are correct.
I fully expect politicians to become involved in this process sooner rather than later as people are going to start to realize that a year without NFL Football would be en economic disaster to an already fragile economy. I’m certain that someone will be putting out a tally on how much the NFL actually contributes to the nations economy shortly. I don’t know what that number is, but I know it has many numbers to the left of the decimal point and plenty of commas too. – Keith A. Baker
Keith is a sports agent in Stamford, Connecticut. His goal is to offer a unique insight to the world of sports. Comments in his columns are for entertainment purposes only and do not reflect the views and opinions of his firm or his clients.
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