The Business Of An Uncapped NFL Season
The Business Behind The NFL
2010 marks a vast change for football players, team owners and fans alike. The Collective Bargaining Agreement (CBA) under which the National Football League (NFL) has operated for over 90 years has expired. This means big changes in the way teams operate, how they 'buy' new players and how fans will experience the game. One of the biggest changes is the removal of the salary floor and ceiling. Under the CBA, teams had to adhere to a strict set of rules.
The salary for each of their players had to fall between the salary floor and ceiling. In theory, this was supposed to foster competition and to keep things fair. Without the salary ceiling, players could ask for, and most likely receive almost any amount of money, as long as they were good enough. 2010 marks the first year there will be neither a ceiling or a floor for salaries.
Another big change regards how free agents are handled. Previously, players need only four years of experience to become unrestricted free agents. Under the 'uncapped' rules, player now need six years of experience. The final eight teams from the 2009/10 season will also be restricted in the number of unrestricted free agents they can sign.
Under the current ruling, none of the NFL teams will have a reduction in funds. This is because NFL teams primarily find income in the form of revue sharing. Simply put, the NFL teams all receive identical funds from a television contract. In fact, it is estimated that 2/3 of the revenue that teams receive is from revenue sharing. Other sources of income such as gate sales and concessions play a role as well. Still, it is unlikely that teams will see a reduction in funds available to them.
The uncapped season shouldn't, in theory have a huge impact on teams, mainly because of the revenue sharing agreement. However, there are still 'rich' teams and poor teams. The difference between the Dallas Cowboys, one of the wealthiest teams, and the Indianapolis Colts, one of the poorest, is extreme. It is likely that some of the poorer teams will have to implement a series of cost saving measures in order to remain competitive - they simply will not have the budget to sign big ticket players.
The uncapped year does make some attempt at remaining fair. The cap on the number of unrestricted free agents that the top eight teams from the previous season can sign is meant to even the playing field. Unfortunately, there is no way to even things out monetarily. Teams that have had poor seasons in recent years are unlikely to be able to afford some of the uncapped salaries. It is likely that the wealthier teams will manage to sign the top talent, while the poorer teams, even after implementing cost saving measures will be stuck with the leftovers.
One is left to wonder if the uncapped year is a positive change. In theory it is, but only time will tell if the new system is equitable.
