Both the NFL and the Players Association are bracing for the large economic impact on the 2020 season due to the COVID-19 pandemic. With lost revenue due to anticipated reduced capacity at stadiums, the financial ramifications on the 2021 salary cap would greatly affect players contracts and the ability of NFL teams to do business.
According to NFL Network’s Tom Pelissero, the NFLPA has proposed to spread out the lost revenue over the life of the entire newly signed Collective Bargaining Agreement. As for the NFL, they currently are wishing to only spread out the revenue loss into one additional season.
NFLPA executive director DeMaurice Smith and president J.C. Tretter just sent this memo to agents, emphasizing the union wants to spread the impact of a projected multibillion-dollar revenue shortfall over an 11-year CBA, rather than in 2020 and 2021 as the NFL has proposed. pic.twitter.com/CO3xmldWLi— Tom Pelissero (@TomPelissero) July 23, 2020
The memo sent out by the NFLPA executive director DeMaurice Smith and President J.C. Tretter was to inform agents of the possible financial ramifications for future contracts. With player agents often being the first source of advising as to how the players should handle their financial decisions when it comes to the NFL, it is important that correct and thorough information is shared with those who are advising players in order to help make the best business decision for the 2020 season.
The memo to agents also laid out several of the issues which are still being negotiated. Things which do not seem to be decided on at this time are the acclamation period for when players return, procedures for players to opt out of the 2020 season, and how contracts will be handled if the season is canceled.