In a story published by ESPN’s Dan Graziano, there are three key elements in which the NFL and Players Association are still negotiating for the 2020 season. The most important of these three is the financial ramifications of revenue loss. With owners reportedly being willing to keep players from the facility until an agreement is reached, Graziano reported the likely outcome will be spreading out the lost revenue over the next five seasons as opposed to the 10 years the NFLPA was requesting.
Regarding how the NFL will handle the projected salary cap windfall (possibly ~$70M) “the likely outcome is a compromise that smooths the hit out over five years, from 2021 to 2025,” sources told @DanGrazianoESPN. https://t.co/4enbiXdjgv— Field Yates (@FieldYates) July 24, 2020
With the NFL anticipating a revenue loss as high as 25% for the 2020 season, the salary cap for 2021 would be set to take a major hit. By spreading out the loss over even five seasons, the reduction in cap space would be much easier to handle. These losses in revenue are still based on the NFL being able to play their entire season, so a reduction in games would see an even larger shortcoming in revenue.
As Graziano stated in his article, a new TV contract for NFL games was hoped to be finalized in the next couple of years. Once it takes place, it could help in eliminating this loss in future years.
One final aspect about the future salary cap is the possibility of providing a floor over the years which will be affected by the revenue loss. By setting a specific number, if the revenue loss is greater than anticipated it could prolong the procedure in to additional years. But on the other hand, if the NFL can rebound in revenue with a new TV deal, the effects of the 2020 season could keep the salary cap from bottoming out for extended period.
Graziano‘s entire article can also be viewed here: