National Football League owners have been saying for a while now that they need a new collective bargaining agreement that is fair to both them and the players as the current CBA is structured in favor of the players by asking for one billion in credits.
So, I sat back and thought what do the owners really want and figured it out.
To figure it out you have to look at the way the owners want to figure out the salary cap for players.
The NFL makes about nine billion in revenue yearly and the league wants to take two billion off of that amount for credits, which leaves seven billion. Now of that seven billion players would get 59.5 percent of it for a total of $4.165 billion.
Most of the NFL’s revenue comes from television contracts. The total of the television contracts with NBC, CBS, Fox, ESPN and Direct TV per a year is $3.785 billion. On average each game brings in $2.5 million and of that 40 percent, or one million, is shared by the teams playing, thus also figured into the salary cap.
There are 256 regular season games a year and those two together total $4.041 billion. The other $124 million comes from licensing deals that the NFL receives with business like Nike, New Era and other businesses.
The thing is all of those are shared between the owners and was how the NFL went about figuring the salary cap prior to the 2006 CBA. Simply, the owners want to get back to designated gross revenue formula, but are going about it a different way to fool the players. That is also why owners are refusing to open their books as in doing so the NFLPA might figure that out while pouring through the numbers.
In the end, the old DGR formula worked fine, but the NFLPA had to be greedy and no we are all going to pay for their greed.