The Pushback
The NFL denial stage is over and owners/players have seen this moment coming for years. While some teams have been preparing, others have not. And much like the grasshopper and the ant story, there will be some who survive the storm while others will suffer. Think this is an impossibility? Dont count on it. Its already here; you just dont know it yet. So here it comes: the pushback.
In short, NFL teams are going to be less profitable on a relative basis in the future, and player salaries are going to be adjusted downward in a big way. You might say the cap is larger next year and then theres an uncapped year, so how is that remotely possible? Lets take a look how some teams have already been preparing for this.
Try to connect these dots Dallas stadium, Gillette Stadium, Dolphin Stadium, Jets/Giants Stadium, most future stadiums.
What do they have in common? They all have, or are located next to, or are going to build a shopping mall or stores. Why do that? Its a logical solution for owners to ensure that their real estate investments are not dormant for six months of the year and the money they earn from them doesnt go to the players. Owners are fed up paying 60 percent of their revenue to the players, and their game day revenues are not growing at the same rate as the players salaries. Their risk/reward profiles are out of whack.
And now take a look at the economy. America has been growing the past 15-plus years (probably more) on the backbone of cheap debt. Americans are over-leveraged, they overspend and under-produce. (Driven a Ford lately? I have. Oh boy). Peoples budgets have been stretched, and they are now realizing their house cant be used as an ATM machine. What does that mean? Less spending. Period.