Much like the case with MLB and the MLBPA, the NFL and NFLPA are dealing with a labor situation as teams prepare for training camp.
The NFL is facing a multi-billion dollar loss in total revenue due to a lack of fan attendance because of the coronavirus. The players get a share of the NFL’s total revenue (they would receive 48 percent by 2021), so they would see a hit as well.
According to NFL Media’s Tom Pelissero, the NFL proposed cuts of $40 million in the salary cap and/or benefits for 2020. The players are said to be opposed to such a drastic cut.
The economic proposal the NFL sent the NFLPA on Tuesday removed the 35% salary escrow provision — but instead would’ve slashed each team’s player costs by $40 million in salary cap and/or benefits in 2020, per sources. Player leadership strongly opposed to such a short-term hit.
— Tom Pelissero (@TomPelissero) July 17, 2020
The players union prefers to stretch the hit out over several years, while the owners are seeking more immediate short-term relief, according to Pelissero.
Under the CBA, the NFL and NFLPA must negotiate in good faith to correct a projected multibillion-dollar revenue shortfall. Union wants to spread the hit over future salary caps. League wants help managing costs now. The sides continue to work towards a deal.
— Tom Pelissero (@TomPelissero) July 17, 2020
If no deal were reached, then there would be a massive cut to the salary cap for the 2021 season. The salary cap is determined by the prior year’s revenue.
Despite the labor negotiations, a few teams have already told players to prepare to report to training camp.
