NFL teams make the majority of their money through deals with TV networks, but the league still stands to miss out on a massive steam of revenue if fans are unable to attend games this season. Now, we have a better idea of just how much money teams would lose.
NFL Players Association director DeMaurice Smith held a call with agents on Monday to discuss the 2021 salary cap, and it sounds like the cap could decrease significantly. According to Tom Pelissero of NFL Network, Smith told agents the league is estimating that a season without fans would result in $3 billion less in revenue.
The collective bargaining states the NFL and NFLPA must bargain in good faith if there’s a significant revenue shortfall. Bargaining hasn’t started, per Smith. (Reminder: It’s an 11-year CBA, so there are ways to spread out any hit and ensure the cap doesn’t take a one-year dip.)
— Tom Pelissero (@TomPelissero) June 15, 2020
It remains unclear if NFL teams will be able to host fans, as the start of the regular season is still nearly three months away. The governor of Texas said recently that outdoors stadiums may be able to host fans at 50 percent capacity, so it’s possible teams will have to follow different guidelines depending upon the state in which they play.
All pro sports leagues are facing the same issues, and we already heard some bad news about the NBA salary cap for next season. If fans can’t attend games or capacity is dramatically limited, it would be hard to envision a scenario where the salary cap in any league increases in 2021.
