Mile High Report: An SB Nation Community

Navigation: Jump to content areas:


Sports blogs for fans, by fans.
New Blog: World Soccer Digest for Soccer Fans!

NFL and money

This is something I've been wondering about as I've been learning more about football as an institution and corporation. Obviously, the NFL has a salary cap and baseball doesn't...is the salary cap for the whole team? So they can choose to spread individual salaries as they please? I think it's definitely something that baseball needs (I'm a huge baseball fan) - see: New York Yankees, esp. Alex Rodriguez's contract (yikes). What do you think of the salary cap? Does it work? Should it be in place?

With the onset of the offseason, there were a couple articles about players and money that caught my eye. One was talking about the Giants and how they might look really different next year, because all the players will use their rings to go out and shop for a lot of money from other teams. This struck me as unbelievably mercenary, so I have to ask; is that common? Or is that the journalism world putting words into mouths? The other ones I've noticed have all been about Asante Samuel and how salaries of CB's are going to rocket sky high because of him demanding a higher price. Obviously, in every professional sport, you have overpaid players, but what do you guys think of the skyrocketing salaries? Are they worth it, or is it the name that matters? I guess the answer will vary with everyone's opinion, but do you think prices go up needlessly for certain players and overblown reputations?
Thanks!

This is a Fan-Created Comment on MileHighReport.com. The opinion here is not necessarily shared by the editorial staff of MHR

0 recs  |  Comment 12 comments

Story-email Email Printer Print

Comments

Display:

I like the salary cap in football,
it allows for small market teams to be competitive.  If the salary cap had been in place in the 60's, the Broncos might not have been so awful. ;)

The Broncos still have a better than average cap level because they are no longer a small market team.  At least, that is what I believe is the case...I am often wrong, so wait till SG, HT, Styg or many of the others here to answer your questions more thoroughly. ;)

2007=1995 all over again: http://www.milehighreport.com/story/2007/10/1/202724/157

by Tim Lynch on Feb 21, 2008 4:43 PM MST reply actions   0 recs

I like the cap too.
One reason I don't like baseball is because you can win or go to a ridiculous number of World Series becuase you can break the bank to get whatever you want.  The fact that other teams get to the big series is the exception to the rule.

If my little team were to get a great player, the Yankees only need to buy him away.

Not so in football.  Each team has to be smart because they are all playing with the same amount of salary money.

Another thing I like is that it keeps individual salaries from getting ridiculous.  Let's say a Manning or a Samual demands a new record contract.  A team has to determine if they are willing to proportionatly drop the rest of the team's salaries to make it happen.

The cap is a prime reason why football is doing so well compared to other sports.

"Greater is an army of sheep led by a lion, than an army of lions led by a sheep" Defoe

by Steve Nichols on Feb 21, 2008 5:13 PM MST reply actions   0 recs

I love the cap
The salary cap takes into account every dollar of every contract for each player on the roster. Teams can reach this cap any way they choose, for example they can tie up 25 million of the cap space for a big name QB or pay thier QB the league minimum and spend the money other places.  They dont even have to spend the money, although most teams stay at or around the cap most of the time.

It is very common for players bank on the success of the team they just left in free agency.  It IS unbelievably mercanary, but you have to think of the league as a business.  No player owes loyalty to any team, and no team owes loyalty to any player.  At all times each side is thinking entirely about what is best for them.  That being said I think free agency is the reason for the success of the NFL.  Even a team as talented as the Patriots will eventually have to rebuild, and even a team that missed the playoffs like the Broncos can make a few key moves and be right back in it.  That is the beauty of the NFL.

by Papamag on Feb 21, 2008 8:03 PM MST reply actions   0 recs

A lot could be said
about the particular machinations and interconnections of the salary cap and the penumbra it grants to the league.

For example, the salary cap and collective bargaining go hand-in-hand.  Collective bargaining is where individual corporations are allowed to pool their resources for specific advantages, in the NFL's case, TV contracts and the like.  This is typically forbidden under anti-trust legislation passed back in President Hoover's day (for better or worse), but collective bargaining gets around those federal legal limitations.

The salary cap links to collective bargaining at the point where the television revenue must be divided up among the teams, which is also a complex issue.

If you have specific questions about the salary cap, you should probably aim them at MattR, who seems to have the most thorough understanding of the cap here at MHR (and he tends to have the numbers at his fingertips, though I don't doubt he makes it look a lot easier than it is :)).

Regarding some of your questions:  the cap is for the entire team, no player is exempt.  It does not, however affect coaching staffs (see Redskins) or front offices.  The cap is the same for every team in the league, and has been growing by a few million every year.  I think it may be at 110mil/year?  On top of that, there is talk that unless the league gets some negotiations with the players hashed out in the near future, the possibility of an uncapped season in 2010, I think, is very real.  There are lots of nuances that teams take advantage of, regarding spreading players salaries out over time, or paying them in the form of bonuses (which may or may not count directly against the cap).

Regarding Samuels, they had the same discussion last year about Nate Clemens, who was signed by the 49ers for a record amount for a CB...My own opinion is that the economics are still relatively laissez-faire in regards to player salaries:  some teams will overpay and get caught up in having to have the best player at a position, but the trend against that is to cultivate your own value when the price gets too high, thus driving the prices back down to reasonable market levels.  Still, every so often you see a player get a deal that signals the begining of a new era in paying that position.  An example of this would be Peyton Manning's contract.

And a trend that you will get used to in the NFL is that every year the Superbowl winners get their free agents picked clean.  There isn't a logical explanation, though there are some psychological theories, but for the last several years now, the NFL World Champion has had a lot of trouble keeping all of their free agents.  I guess the FAs look better with a ring on!

Lastly, in the spirit of full disclosure, you should know that the Broncos under Shanahan got into Patriot-like trouble several years ago with their own "creative" practices of keeping the team "under the cap."  It cost them a third round draft pick, which the league made them forfeit, much like the Patriots are forfeiting their 1st rounder this year.  I'm sure some of the MHR guys and gals who recall it better than I do can give you more details.  The caveat is that the teams were still in the infancy of the cap and figuring out how it worked.  Denver's particular way of 'tweaking' the cap was found to be unacceptable AFTER the fact.

Bonus:  I just keep thinking of things to say here...lastly I wanted to bring up the practice squad.  Every NFL team is allowed to have a practice squad that has several young players on it.  The rules regarding player eligibility revolve around how much time they have actually spent on the NFL field.  It is a recent development which teams are still figuring out how to work to their best advantage.  These players are in addition to the regular 53-man roster which is governed by the salary cap, so I think these players may not count against the cap.  I could be wrong on that point though.

by Jeremy Bolander on Feb 21, 2008 9:51 PM MST reply actions   0 recs

PS
How did the show go?

by Jeremy Bolander on Feb 21, 2008 9:52 PM MST up reply actions   0 recs

The show...
went really, really well. It really impressed a lot of people. Considering all that, though, my dad and I still want to bring it up a notch for the actual show...right now we just need to fundraise like crazy and promote, promote, promote. We're spending some time considering where the money has the highest impact and all that...

But I'm REALLY excited as to the direction it's going! Now I just need to recover from all the energy I put into the sneak...

http://www.notthisday.com

by Squeaky on Feb 21, 2008 10:10 PM MST up reply actions   0 recs

Solid summary
I have 90% of a diary written about the workings of the salary cap and will be posting it at some point this weekend.  But this link is a pretty good FAQ.  I have also been working on updating the salary cap data of the Broncos.  There are a few players I am still trying to figure out (and Henry and Bly restructuring their contracts isn't helping).  I can't think of a rally good way to display it for the whole team, but if anyone has specific questions abuot players I will do my best to answer.  

(Disclaimer:  I am calculating the numbers myself based on the best available info and some educated guesses.  Unfortunately, I can''t find anywhere that has all the details that I need.  If anyone has disagreements, different info or additional info please let me know)

by MattR on Feb 22, 2008 9:58 AM MST up reply actions   0 recs

I look forward to your upcoming post,
it sounds like it will be front page material.  I am going out of town this weekend, so I'll have to read it on Sunday.  Good job man!!
2007=1995 all over again: http://www.milehighreport.com/story/2007/10/1/202724/157

by Tim Lynch on Feb 22, 2008 10:24 AM MST up reply actions   0 recs

Salary Cap diary is posted
I got inspired to finish it instead of eating lunch.  It is amazing how quickly the brief description turned into several pages.

Please post any questions, comments, thoughts, ideas, etc..

by MattR on Feb 22, 2008 11:27 AM MST up reply actions   0 recs

oops, and here is the link
Meant to include the link to the diary

I wish we could undo comments in the first 30 seconds they are posted.

by MattR on Feb 22, 2008 11:28 AM MST up reply actions   0 recs

Denver's cap violations
This is actually a semi-relevant topic.  There was an article somewhere in the past couple days because the players union is filing a grievance with the NFL.  There is a debt ratio that each team is subject to (I don't recall how it is calculated but it is some % of franchise value or of cash flow).  The NFL recently decided to lower that ration (I want to say from 30% to 20%).  The players union is upset because they think that will make less money available for signing bonuses (and that it is an attempt to keep salaries down if the salary cap goes away in 2010) and they think it should be something that is collectively bargained.

The reason this is relevant is that I am pretty sure that Denver's violations had to do with circumventing the debt ratio.  I think that they were fined once for going over the limit (or perhaps not contributing the proper percentage to a league held fund).  The second time they were punished for not reporting deferred bonus money that should have counted against the debt limit.  This all occurred as the team was trying to finance the new stadium so they had a bit of a cash flow crunch at the time (and were therefore borrowing more than usual to cover bonuses).  

This is all off the top of my head so I could be off on the details.

by MattR on Feb 22, 2008 10:06 AM MST up reply actions   0 recs

Just two small points
  1. The cap is good. Makes people responsible, and the game fair.
  2. Giants have all of their key players locked up, excpet for FS Wilson. They other guys are just scrubs and backups.
styg got everything else.
Orange County is hot. Really! Haven't you seen the weather report?

by amirebram on Feb 22, 2008 3:09 AM MST reply actions   0 recs

Comments For This Post Are Closed


User Tools

MileHighReport(MHR) is the ultimate independent resource for the Denver Broncos on the web. Along with MHR Radio, the official podcast of MHR, we look to provide hardcore Denver Broncos fans positive, independent insight about the Broncos, 24/7/365!
Start posting about the Broncos »

Join SB Nation and dive into communities focused on all your favorite teams.

RedZone Moments from SB Nation

Baltimore Beatdown
Ravens Game Release: Week 12 vs. Pittsburgh
Mile High Report
Comcast Redzone Report - Behind the losing streak
The Phinsider
Dolphins in the red zone: Week 11

FanPosts

Community blog posts and discussion.

Recommended FanPosts

Kyle_orton_drunk_small
What McGeorge likes about the 2009 Denver Broncos.
Charlotte_1_small
Aussie Meanderings: The Tale of Two Teams (pre and post bye).
Small
Why are we freaking out guys?
Ah-64_apache_helicopter_small
Ryan McBean, the difference maker?
Hpim2076_small
UPON FURTHER REVIEW - The Chargers Part 2

Recent FanPosts

Cpfc_club_badge_small
Tales From Across The Pond Day 3
Hpim2076_small
UPON FURTHER REVIEW-Scouting the Giants
Zoo_080_small
w 12 odds
Tahoetim_small
Upheaval
Cpfc_club_badge_small
Tales From Across The Pond Day 2
Untitled_4_small
Egads!
N1500960434_30298681_247_small
Gasp...The First Broncos Mock Draft of the Year!  Maybe...

+ New FanPost All FanPosts >

Latest NFL Headlines from SB Nation

Turf Show Times
Making moves at Rams Park
Arrowhead Pride
It's Official: Chiefs S Maurice Leggett to Injured Reserve
The Phinsider
Dolphins vs Bills: Game Capsule

Getting Social With MHR

Facebook_badge_medium_medium
Black_generated_button

Milehighreport_email_medium

MHR Radio

SPONSORS

Web Stuff


General Manager/Head Coach

Milehighreport_small John Bena

Cyborg_small Jeremy Bolander

Asst. Head Coach

Mhr_small Steve Nichols

Tahoetim_small Tim Lynch

J_elway_870111_640_small Douglas A. Lee

Plato_bust_small Emmett Smith

Denver-broncos-button_small Ted Bartlett

The-big-lebowski_small TJ Johnson

Quality Control

800px-john_brown_painting_small mdierk