Capping it all off (updated 9/20)
Written by Deshawn Zombie   
Wednesday, 26 August 2009 12:57

Just to have it all in one place, here's a quick guide to the NFL's labor situation as I understand it:

What happened: In 2008, the owners opted out of the current Collective Bargaining Agreement.

What was the effect: It triggered a countdown designed to force the owners and players to sit down and deal before the clock hits zero.

What are the key dates:
  • March, 2010- The two sides have to come to come to an agreement by March in order to forestall an uncapped season
  • March 2011-If no agreement is reached by the start of free agency, the owners will likely "lock out" the players.  A lock out is like a strike initiated by the owners.  The players, who like the current CBA, will show up to play.  The owners won't let them, because they don't want to pay them 60% of the revenues as they are obligated to now.  Of course, both sides could just shrug and play without a CBA, but that is unlikely to happen.  Like the Lions win the Super Bowl this year unlikely.

Why might the players not negotiate soon?

What might get them to the table?

  • No salary cap means no salary floor.  Currently, teams are forced to spend at least 87.6% of the cap.  Many teams hate this.  No cap, means no floor.  No floor means that some teams could conceivably slash their payrolls to ridiculous levels.
  • 2010 would hurt pending free agents. Players like Marlin Jackson and Antoine Bethea would have to wait two more years before becoming an unrestricted free agent.  The first FA contract is the gold mine for NFL players who weren't highly drafted.  Forcing them to stay with a team for two more years would be a blow.
  • More tags.  Even the players who do qualify as unrestricted free agents could be subjected to an extra "tag" by their club.  Players don't like to have their movement restricted.
  • Fewer teams can participate. Vetrans won't be able to chase a ring because the best teams won't be able to participate in free agency without losing a player first.
  • Desperation.  Most NFL players don't make 'that much' money.  They can't afford a work stoppage.  They need the green river to keep flowing.

Why might the owners not negotiate soon?

  • No salary cap means no salary floor.  Some owners like Wayne Weaver hate the spending floor.  They may just let the cap expire so they can turn their franchises into the NFL equivalent of the Pittsburgh Pirates.
  • They feel they can break the players.  The NFL has never had the strongest union, and many players live pay check to pay check.  If the owners feel they can crush the union as they did in 1987, they'll go for the throat and force the lockout until the players are ready to agree on their terms.
  • Guaranteed money.  The owners have been securing rights deals that pay out whether or not there are games.  In other words, they'll still make money even if the league doesn't play.

What might get them to the table?

  • The salary cap has made for a level playing field.  They know that the players have threatened to never let it come back once it goes away.  To save the cap, they might try to get a deal done by March.
  • Instability is bad for the game.  The league is a powerhouse right now.  The only thing that could derail it would be a work stoppage.  It's in the owners best interests to get a deal done quickly.

What are the key issues?

  • The biggest issue is what percentage of total revenue should go to the players.  It's always about money
  • There are debates about what revenue streams should be included in that formula
  • The draft system overpays at the top.  Owners hate it.  Some veterans hate it.  The union loves it because it drives wages up.

What does this mean for the Colts?

1.  An uncapped 2010 would probably be a short term boost.  The Colts have two key players that would no longer be eligible for free agency.  The top 4 teams are prohibited from signing free agents (unless they lose one of their own) with other restrictions on teams 5-8, so other top AFC teams that usually rely more on F/A than the Colts would suffer, while Indy could keep right on ignoring the market like always with no repercussions.

2.  An uncapped NFL would push the Colts to the middle class.  Irsay is never going to be cheap.  The Colts perennially sit in the top 5 of most money spent under the cap system.  Still, teams like the Cowboys, Redskins, Giants, and Patriots have virtually unlimited resources and would perpetually outspend Indy.  As long as the Colts kept the system draft and develop talent, however, they would likely stay competitive.

3.  A work stoppage would be devastating to the franchise.  They play in a new stadium that is publicly funded and the 2012 Super Bowl is slated to be played in Indianapolis.  A lost season would take away a year of Peyton Manning's career, a Super Bowl, and create ill will in the community.

What is happening now?

The two sides have talked a couple of times recently, but the players are bracing for a lockout.  Little progress has been made, and the two sides are still arguing over what records to disclose.

Update: 9/4  Goodell says the league is prepared for an uncapped 2010. No significant negotiations have taken place.

Update: 9/20 FO has a great article explaining the restrictions on signing unrestricted free agents (UFA's) by the top teams.



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Comments (13)Add Comment
Excellent summary....
written by LTTelamon, August 26, 2009
...and my reference point for future talk on this subject. Enjoyed discussion on this topic at SB. Kudos.
...
written by DZ, August 26, 2009
Thanks. I did a lot of research on it, just to make sure I had my facts straight, and figured it was worth a post.

I might be wrong or not up to date on something, so I welcome any corrections anyone comes across.
Thanks.
written by peytonsurdaddy, August 26, 2009
This put the cap arguments I've been hearing for the last year into a more readable and informative form. I feel slightly less ignorant. At least on this subject...
...
written by bubbadeez, August 26, 2009
Nice post. Wait for the haters to speak up though.

Hey, with no Cap, maybe 88 could come back. Just kidding.
...a lot of research
written by Doug England, August 26, 2009
Ha, I'm guessing you just got all that from reading "Ask Vic".

Seriously, that is great info. Are you going to make it available in fixtures to reference?
...
written by DZ, August 26, 2009
It hadn't occured to me before, but sure. I'll link it up in the Articles sidebar. Fixtures is more for Colts history and stuff.
This is great.
written by coltsfanawalt, August 26, 2009
Thanks for the good info. Summed up well.
DZ Very nicely done
written by Bob M, August 27, 2009
I'll have to re-read for complete comprehension, but off the top of my head, I can say that this Pittsburgh Pirate fan vociferously objects, in so so many ways, to your entirely factual anti-Pirate slur. (although comparing them to the Jags, man that is low)

And even as a Yankee fan, I hate what Steinie has done to baseball's salary structure.

I think your Colts ramifications section is excellent--personally, I would choose to forego the couple years of lift we'd get from no cap, in order to avoid the decades of being outspent by the top revenue teams. Hopefully Chris Polian has learned enough at the master's knee that he'd adapt to an uncapped world just as his father mastered the capped world. But still, a lot of unknowns.... much like the future.
You belong
written by J.C., August 27, 2009
With all the other small market bitches.....it's Darwinian in nature.

Accept it.
It's Basic Business, JC
written by Bob M, August 27, 2009
I have a location and a product and now I am trying to maximize success. I can move to improve #1 or change the product to improve #2. Or work the system to take advantage of whatever rules can help. (For practical purposes, #1 is fixed and #2 is always evolving anyway.)

If you are smarter, it trumps the Darwinian effects of small markets. Would Pioli/BB/Kraft have succeeded as well in KC or Green Bay? You bet! Same for Irsay/Dungy/Polian. Not because they had bunches of cash, but because they were smarter.

So it appears that your small markets Darwinism suggestion, while a convenient short-hand explanation, is too narrowly-focused and simplistic and therefore falls short. It works for comparing apples to apples, but not all teams/front-offices are equal.
And JC, I am a little hurt that you didn't call me a
written by Bob M, August 27, 2009
pussy.

It's one of my favorite insults. Growing up in Jersey, it was used like the word "the" but is strangely out of vogue these days.

Maybe next time.
Bob
written by J.C., August 27, 2009
Please.

You think Cashman is an elite intellect? Hank Steinbrenner?

You think they got CC and Texeira because they're brilliant front office gurus, or because they dropped TARP money on two sick free agents?

Pussy.
...
written by DemondSanders, August 27, 2009
When I read the words "a year of Peyton Manning's career" I have to admit that panic shot through my body.

I'll never forgive the NFL suits if they allow this happen.

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