NFL player contracts versus actual games played

[Scrappy]

If the NFL player has a certain guaranteed contract for a year & they end up only playing 8 games, does he get half the money ?? I can see this coming up as a problem if the NFL decides to wait to cancel the games & then by the time they get their act together, half the season is lost. You know the players will want their money but the owners by their own accord only have ~half a season worth of ticket sales / revenues separate of the TV contracts.

 

I feel that if the owners plans of missing games come to pass, the deal might not be financially be able to fly because of the owners lost revenues versus what is contractually owed.

Edited May 26, 2011 by Scrappy

[KD in CA]

I feel that if the owners plans of missing games come to pass

 

Huh? Did you intercept some secret memo stating the owners want to cancel games??

[Ghost of Rob Johnson]

Huh? Did you intercept some secret memo stating the owners want to cancel games??

Didn't say they want to, said they're planning for it.

[simpleman]

If the NFL player has a certain guaranteed contract for a year & they end up only playing 8 games, does he get half the money ?? I can see this coming up as a problem if the NFL decides to wait to cancel the games & then by the time they get their act together, half the season is lost. You know the players will want their money but the owners by their own accord only have ~half a season worth of ticket sales / revenues separate of the TV contracts.

 

I feel that if the owners plans of missing games come to pass, the deal might not be financially be able to fly because of the owners lost revenues versus what is contractually owed.

 

Attached is the standard unmodified player contract for the NFL. The way I read it is the player is payed per season not per game. If he plays the first game of the season and is not injured, released or otherwise disqualified, he is paid regardless of the number of games played. Of course performance clauses and bonuses are definitely affected. Am I misreading this?

 

 

5. COMPENSATION. For performance of Player’s services and all

other promises of Player, Club will pay Player a yearly salary as follows:

$__________________________for the 20_____season;

$__________________________for the 20_____season;

$__________________________for the 20_____season;

$__________________________for the 20_____season;

$__________________________for the 20_____season.

In addition, Club will pay Player such earned performance bonuses as may

be called for in this contract; Player’s necessary traveling expenses from his

residence to training camp; Player’s reasonable board and lodging expenses

during pre-season training and in connection with playing pre-season,

regular season, and postseason football games outside Club’s home city;

Player’s necessary traveling expenses to and from pre-season, regular season,

and postseason football games outside Club’s home city; Player’s necessary

traveling expenses to his residence if this contract is terminated by

Club; and such additional compensation, benefits and reimbursement of

expenses as may be called for in any collective bargaining agreement in existence

during the term of this contract. (For purposes of this contract, a

collective bargaining agreement will be deemed to be “in existence” during

its stated term or during any period for which the parties to that agreement

agree to extend it.)

6. PAYMENT. Unless this contract or any collective bargaining

agreement in existence during the term of this contract specifically provides

otherwise, Player will be paid 100% of his yearly salary under this contract

in equal weekly or biweekly installments over the course of the applicable

regular season period, commencing with the first regular season game

played by Club in each season. Unless this contract specifically provides

otherwise, if this contract is executed or Player is activated after the beginning

of the regular season, the yearly salary payable to Player will be reduced

proportionately and Player will be paid the weekly or biweekly por-

250

[Scrappy]

This was my exact point. If games are missed & that revenue is lost, how can the owners still pay out the same amount ?? It's actually making me wonder if the owners thought their end of this through fully, trying to force missed games based on the way they made the schedule.

 

Attached is the standard unmodified player contract for the NFL. The way I read it is the player is paid per season not per game. If he plays the first game of the season and is not injured, released or otherwise disqualified, he is paid regardless of the number of games played. Of course performance clauses and bonuses are definitely affected. Am I misreading this?

 

 

5. COMPENSATION. For performance of Player’s services and all

other promises of Player, Club will pay Player a yearly salary as follows:

$__________________________for the 20_____season;

$__________________________for the 20_____season;

$__________________________for the 20_____season;

$__________________________for the 20_____season;

$__________________________for the 20_____season.

In addition, Club will pay Player such earned performance bonuses as may

be called for in this contract; Player’s necessary traveling expenses from his

residence to training camp; Player’s reasonable board and lodging expenses

during pre-season training and in connection with playing pre-season,

regular season, and postseason football games outside Club’s home city;

Player’s necessary traveling expenses to and from pre-season, regular season,

and postseason football games outside Club’s home city; Player’s necessary

traveling expenses to his residence if this contract is terminated by

Club; and such additional compensation, benefits and reimbursement of

expenses as may be called for in any collective bargaining agreement in existence

during the term of this contract. (For purposes of this contract, a

collective bargaining agreement will be deemed to be “in existence” during

its stated term or during any period for which the parties to that agreement

agree to extend it.)

6. PAYMENT. Unless this contract or any collective bargaining

agreement in existence during the term of this contract specifically provides

otherwise, Player will be paid 100% of his yearly salary under this contract

in equal weekly or biweekly installments over the course of the applicable

regular season period, commencing with the first regular season game

played by Club in each season. Unless this contract specifically provides

otherwise, if this contract is executed or Player is activated after the beginning

of the regular season, the yearly salary payable to Player will be reduced

proportionately and Player will be paid the weekly or biweekly por-

250

[simpleman]

This was my exact point. If games are missed & that revenue is lost, how can the owners still pay out the same amount ?? It's actually making me wonder if the owners thought their end of this through fully, trying to force missed games based on the way they made the schedule.

 

We know the TV money is guaranteed regardless of the games played. I guess someone with more information could provide us with information on how much of an NFL team's total income for teams like the Bills is actually from each game actually being played vs. other income like TV and licensed items and things like government subsidies and seat licenses. Maybe for many teams the loss is worth the risk, or not that great compared to the long term gains they hope to achieve. Or maybe the owners are less concerned with short term income vs the appreciation of the teams net worth as a long term investment. And remember a majority of the owners are extremely wealthy independent of their investment in the sports franchise and may not have trouble fronting the extra expenses now for long term gains down the road if they get the give backs they want from the players. Most are not like the typical fan working and living from week to week just a few steps from living on the streets.

[ICanSleepWhenI'mDead]

6. PAYMENT. Unless this contract or any collective bargaining

agreement in existence during the term of this contract specifically provides

otherwise, Player will be paid 100% of his yearly salary under this contract

in equal weekly or biweekly installments over the course of the applicable

regular season period, commencing with the first regular season game

played by Club in each season. Unless this contract specifically provides

otherwise, if this contract is executed or Player is activated after the beginning

of the regular season, the yearly salary payable to Player will be reduced

proportionately and Player will be paid the weekly or biweekly por-

250

Let's assume for the sake of argument that your interpretation of the contract language regarding payment is correct. If the current NFL appeal results, as expected, in an 8th Circuit opinion that allows the lockout to remain in effect, I think the owners have a way around the potential problem. I am not aware of any reason why a global settlement of all issues between the owners and players could not include:

 

1. recertification of the NFLPA as a union;

2. a new CBA entered into by the NFL and that newly recertified NFLPA; and

3. terms in the new CBA that specified that existing contracts would be modified so that 2011 payments to players would be paid on a pro rata basis, based on number of games in the 2011 season (e.g., if 8 games are played, which is 1/2 of the usual 16 game season, then only 1/2 of the salary otherwise owed gets paid).

 

Per the existing contract language in bold above, the existing contract's terms can be modified in a new CBA in any fashion that the owners and a newly recertified NFLPA agree upon.

 

Just my 2 cents, but I think this would be consistent with existing player contract language.

Edited May 29, 2011 by ICanSleepWhenI'mDead

[simpleman]

Let's assume for the sale of argument that your interpretation of the contract language regarding payment is correct. If the current NFL appeal results, as expected, in an 8th Circuit opinion that allows the lockout to remain in effect, I think the owners have a way around the potential problem. I am not aware of any reason why a global settlement of all issues between the owners and players could not include:

 

1. recertification of the NFLPA as a union;

2. a new CBA entered into by the NFL and that newly recertified NFLPA; and

3. terms in the new CBA that specified that existing contracts would be modified so that 2011 payments to players would be paid on a pro rata basis, based on number of games in the 2011 season (e.g., if 8 games are played, which is 1/2 of the usual 16 game season, then only 1/2 of the salary otherwise owed gets paid).

 

Per the existing contract language in bold above, the existing contract's terms can be modified in a new CBA in any fashion that the owners and a newly recertified NFLPA agree upon.

 

Just my 2 cents, but I think this would be consistent with existing player contract language.

 

 

You are exactly right. Under your assumption the players will completely cave in and the owners will "win", forcing the payers to give back their due under their existing contracts. I hope the resolution is not quite so one-sided, and the owners will also have to make some sacrifices themselves as a result of their actions. The owners brought this on themselves. The players did not strike, the owners locked them out. The players were more than willing to continue playing under the old contracts while the two sides continued to negotiate.

[spartacus]

You are exactly right. Under your assumption the players will completely cave in and the owners will "win", forcing the payers to give back their due under their existing contracts. I hope the resolution is not quite so one-sided, and the owners will also have to make some sacrifices themselves as a result of their actions. The owners brought this on themselves. The players did not strike, the owners locked them out. The players were more than willing to continue playing under the old contracts while the two sides continued to negotiate.

 

the players have not started to negotiate yet

 

 

of course they want to continue to get paid while they wait for their anti-trust to conclude in 5 years

 

you do realize that "playing under the old contracts" will result in anti-trust violations for the league

 

from the owners perspective, continuing to operate without a CBA under the very rules that the players are bringing treble damage claims for anti-trust violations is just a bit problematic.