Zero2Cool
14 years ago
http://packersnews.greenbaypressgazette.com/article/20100910/PKR01/100910149/Dougherty-column-Packers-in-good-shape-for-possible-salary-cap 

The NFLs next collective bargaining agreement is going to limit players salaries, some way, some how.

Most likely, the new deal, whenever it gets done, will have a salary cap, though maybe it will be a luxury payroll tax or the like.

No matter, the Green Bay Packers will be in good shape.

General Manager Ted Thompson and Vice President Russ Ball have kept the Packers payroll on sound footing no matter the rules, and they, like many teams, took advantage of this uncapped season to get in even better shape.

In March they signed three players (Nick Collins, Ryan Pickett and Chad Clifton) to lucrative contracts that paid them a collective $34.4 million that wont count against future salary caps, assuming the next CBA keeps basically the same accounting rules as before.

So as of today, the Packers 2011 commitments for salary-cap pay are about $111 million. That doesnt include any bonuses or raises triggered by performance this season, or any raise for cornerback Charles Woodson with the contract extension he signed Thursday. It also accounts for only the 42 players who are under contract next year. They have 10 players on their roster who will be unrestricted free agents next year if the eligibility minimum returns to four years service.

However, that total includes linebacker A.J. Hawks $10 million salary for 11, and theres no way the Packers will bring him back at that cost. It also includes Johnny Jollys $2.521 million salary, which will be dropped from their books if they cut him after his one-year suspension for violating the NFLs substance abuse policy.

For context, the NFLs salary cap in 2009 was $128 million, presumably would have been about $10 million higher this year if the cap were in place and another $10 million or so higher in 2011.

The leagues owners are committed to cutting the players piece of the pie, which was 59 percent of total revenue, but theres no way to know how far the 2011 cap under a new
CBA will be from the $148 million or so it would have been. But its hard to see the players giving in to a gigantic difference, so Thompson surely will have plenty of flexibility.

Not that hell spend on free agents, he almost surely wont. But he will use his money to re-sign and extend the deals of his current roster.

As far as the specific terms of the next CBA, negotiations have been almost nonexistent, so its difficult to even guess.

Its easier to predict when there will be a new deal.

Theres no deadline to push the process until the start of the new league year in early March. That could spur a deal, though its far more likely there wont be enough urgency until the start of training camp or the start of the regular season, when owners start losing revenue and players miss paychecks.

If theres no deal by early March, the owners will lock out the players. If they dont, theyll have to pay all the big option and roster bonuses due at the start of the league year at the risk of there not even being a season.

If theres a lockout, the CBA still calls for a draft in April, but there wont be free agency, an offseason workout program, offseason practices or training camp.

The owners insist their net profits have declined under the current CBA because of increasing costs not only on players, but in building new or refurbished stadiums to help grow revenue that they say benefits players too.

The players want the owners to open individual teams books to prove duress, but its hard to see that happening. The Packers as a public, non-profit organization are required by their by-laws to disclose publicly their finances, and NFL owners point to them as proof of an unsustainable economic model. But actually, at closer look the Packers finances this year are ambiguous on that point.

For the Packers fiscal year 2009, their revenue was a record $258 million, yet their profit from operations dropped to $9.8 million from $20.1 million the year before. Also, their players costs increased at a much higher rate (11 percent) than revenue (5 percent).

However, their fiscal year runs from April 1 through March 31 each year, so their player costs for 09 included $36.22 million in roster bonuses paid in March 10 to Collins, Pickett, Clifton, Mark Tauscher, B.J. Raji and Clay Matthews. Thats far more than the Packers usually pay out at that time of year.

Regardless, the owners and players will have to compromise somewhere to reach a deal, and how much the league asks players to give in from 59 percent depends in part on what the players give up elsewhere. For instance, agreeing to an 18-game schedule. Publicly the players are against it because of career longevity and long-term health. Theres plenty of reason to think a lot of them are against it privately, too, for those reasons.

An 18-game season definitely undercuts the NFLs recent emphasis on player safety.

But it also could help clear the big hurdle.

It could be a game-changing issue, said Andrew Brandt, the former Packers vice president who blogs on NFL business issues for and co-owns NationalFootball Post.com.

Depending on who you believe, (the owners) may be offering between a 9 and 18 percent rollback. Lets say they go to the players and say, Were going to give you a much more modest rollback or no rollback at all, but we want you to play these two extra games. That could be a breakthrough in the negotiations.

Some other issues are:

The owners want to be able to recover more of a players signing bonus if he holds out on his contract or gets suspended. The owners will have to give something to get this.

Drug testing, most notably for human growth hormone. The owners want it, the players dont, though why players wouldnt want testing is beyond me. If they know other players arent using it, theyll know they dont have to keep up.

A more rigid rookie wage scale so the top few picks in the draft arent receiving $40-million plus guarantees. Both sides favor this.

Minimum years to qualify for free agency. It was four years, and when it moved to six years this year, it was a disaster for the players. Brandt said he thinks a new deal will keep it at four.


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Mckennj3
14 years ago
Great read, clears a lot of the confusion up towards who wants what. I knew Ted would take advantage of it but this proves it.
We are born naked, wet and hungry. Then things get worse.
dyeah_gb
14 years ago
I have been looking for an article like this for some time. Thank you for the post.

Worst thing that can happen out of the CBA is if they ruin the parity that exists currently in the NFL. I understand that some teams are often in contention and some teams notoriously suck but allowing a team to be a super bowl contender every year just because it is the highest bidder will destroy the sport.

Funny comment last Thursday by the commentator when all the players were on the field giving the #1 sign "(paraphrased) Nothing like a players union statement to start the season."
The first principle is that you must not fool yourself, and you are the easiest person to fool - R. Feynman
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dfosterf (36m) : I can find that the Microsoft lady rep for Titletown Tech is the philanthropy boss for the entire Microsoft corporation, but. .
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dfosterf (1h) : The white background beta was hard to read, especially the quotes
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dfosterf (1h) : *Friday*
dfosterf (1h) : 100 million would be 539 million as of Fridsy
dfosterf (1h) : Heck, they could have taken a hundred milliion and invested in DAVE inc. last year (semi random, humor, but real)
dfosterf (1h) : Beer brat and ticket is where the money comes from
dfosterf (1h) : The 40th is Titletown Tech itself. This is a pet project of both Ed Policy and Mark Murphy
Zero2Cool (1h) : New site coming along nicely. The editor is better than what we have here. Oh yeah!
dfosterf (1h) : No profit that I know of. 0 for 40
dfosterf (2h) : The woke reference has to do with the makeup and oftentimes objectives of the companies they invested in
packerfanoutwest (2h) : beer and brats woke? say whom?
beast (2h) : I don't want to get into politics, but how is, beers and brats considered to be "woke"? Food is food...
beast (2h) : That being said, I'm not saying all 100% should be that way, but not surprised if majority are Wisconsin based
beast (2h) : And if everyone has heard of them, then it it probably has less growth potential and less community based
beast (2h) : Well isn't the investing person supposed to invest the money?
dfosterf (2h) : I swear if I were to discover that one of them has invented a virtue signalling transmitter I will not be surprised, lol
dfosterf (2h) : 39 companies so far that I bet no one has ever heard of.
dfosterf (2h) : -Not saying woke, but should- borderline philanthopist venture capital excercise
dfosterf (2h) : Well for one, they are pouring resources into Title Town Tech. Investing beer, brat, hot dog, ticket money into what is pretty much...
beast (9h) : Wow, 95% drop in investment revenue? Would be interesting to hear the details of why...
dfosterf (25-Jul) : It's my one day deal complaint dept. on shareholder meeting day
dfosterf (25-Jul) : Probably a homer access credential intimidation kinda thing
dfosterf (25-Jul) : Meathead "journalists" skip this, concentrating on operational revenue when convenient. They switch when net revenue is more favorable.
dfosterf (25-Jul) : Resulting in an actual drop of net revenue of 12.5%. She is from Minnesota. Just sayin'
dfosterf (25-Jul) : Any plans to hold Maureen Smith (CFO) accountable for a 95% drop in investment revenue?
Mucky Tundra (25-Jul) : In your face, HBO!
Mucky Tundra (25-Jul) : @ByRyanWood Mark Murphy: “A great source of pride of mine is that we were never on Hard Knocks.”
Mucky Tundra (25-Jul) : *years
Mucky Tundra (25-Jul) : @mattschneidman Mark Murphy says he anticipates “many Packers games” being played in Germany, Ireland and/or the U.K. over the next 5-10 yea
dfosterf (25-Jul) : *cafeteria* I have hit my head also, so I sympathize
dfosterf (25-Jul) : Possibly hit his head leaning into the glass protecting the food in the cafateria
dfosterf (25-Jul) : Maybe a low flying drone
dfosterf (25-Jul) : Did Savion Williams run into a goalpost or something?
Mucky Tundra (25-Jul) : also, no bueno when a guy starts getting concussions right off the bat in his career
Zero2Cool (25-Jul) : Concussion is worse. Banks probably vet off day via back booboo claim
Mucky Tundra (25-Jul) : @AndyHermanNFL Jordy Nelson out at camp today. No word if he’s in play for one of the two open roster spots ; )
dfosterf (25-Jul) : Is that better or worse than Banks bad back?
Zero2Cool (25-Jul) : Savion concussion ... not good.
packerfanoutwest (24-Jul) : Aaron Rodgers’s first pass of first team period was picked off
Mucky Tundra (24-Jul) : tbh I didn't hear of his passing
Zero2Cool (24-Jul) : Cosby Show. Malcom Jamal Warner I think is real name
Mucky Tundra (24-Jul) : I was thinking of Ozzy and Hulk
Mucky Tundra (24-Jul) : Who's Theo?
Zero2Cool (24-Jul) : How is Theo alliteration?
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