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Loss of revenue and Cap, specifically Steelers

Discussion in 'Steelers Talk' started by Vox Ferrum, May 7, 2020.

  1. Vox Ferrum

    Vox Ferrum Well-Known Member

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    I heard about this read today and found the link. Schefter states the Cap could actually go down 40 to 60 million per team. Pure speculation, but this also does not take into account the Networks loss of revenue and how this might affect negotiations for future broadcast rights. While it is a general NFL topic, how do you think the league will handle past contracts that were made with a higher Cap? Tell the teams to suck it up an deal with it, or perhaps allow a % to be 'written off'? With the high amount of restructuring done, how do you think this might affect the Steelers?

    https://sportsnaut.com/2020/04/nfl-could-suffer-mind-blowing-revenue-hit-due-to-covid-19/
     
  2. SteelersFanIrl

    SteelersFanIrl Well-Known Member

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    I’ve been saying this on here for a while. The supposed substantial cap increase that everyone is waiting for in 2021 is not happening, that’s pretty clear by now.

    My guess is that if revenue is down substantially the league may agree to hold the cap at the current level and not implement and increase or decrease. If 2020 is expected to be a blip the teams may just suck it up. Implementing a large cap reduction would cause utter chaos across the league.

    Bad news for the steelers, who have a long list of impending free agents after 2020
     
    • Agree Agree x 1
  3. Brice

    Brice Well-Known Member

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    I think this is smoke and mirrors not to increase player salaries for the 17th game.

    Nothing mentioned about how TV ratings will be at an all time high if the Draft Coverage proved anything.
     
    Last edited: May 7, 2020
  4. thorn058

    thorn058 Well-Known Member

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    They are saying the same thing about the NHL as well lost revenue might force a lowering of the cap or a freeze. I don't think the league will do anything about teams working contracts based on projected increase to the cap. The uncapped year teams operated as if it would continue and had few problems. Unfortunately the Steelers operated as if the cap was in place and seemed to suffer for it the following year. I can see that happening again.

    The first pro league back is going to be riding a wave of support and fan interest but it is where it crashes that will be trouble. When you are thirsty water is great but after a glass its just water and you want something more.
     
  5. Brice

    Brice Well-Known Member

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    Nascar May 17th. No Fans, but the ratings will be interesting. Also all the races in May will be on 2 tracks 100 miles from each other.


    upload_2020-5-7_19-52-13.png

    Could the NFL do this? Set 4 sites and play 4 games at each site every weekend?
     
  6. Vox Ferrum

    Vox Ferrum Well-Known Member

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    The new CBA settled that, the 17th game and payment structure was a griping point for the higher paid players. The salary increase for the league minimum players was the carrot that got the thing passed, the extra bucks for the 17th game amounts to almost scratch for the highest paid contracts.

    While ratings may be high, finding advertisers to pay those higher rates may be a problem. The league was hoping to score a quick strike with new TV deals off their increased ratings last year. Disney was reportedly poised to offer big bucks, for a 'night' package that would make Monday night a feature network game again (ABC) and move Thursday to ESPN. Also rumored they were hoping to snatch Sunday night away from NBC and create the nighttime schedule around the One company. Doubt they could have pulled that off, but Disney is now losing 30 million a day, Cable is threatening to sue to get back bucks because ESPN is not delivering on promised content, and the other networks are hurting as well. Long term I have no doubt the money will start to flow again, but the negotiations from all stand points (players and TV) should be interesting.
     
  7. NY STEELERFAN

    NY STEELERFAN Well-Known Member

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    Yeah man how does that 41 mil cap hit of Ben look now.........all so we could keep Bud!!!!!!! Many kept saying we will be fine the cap is going up a lot next year..........ok we shall find out.
     
    • Like Like x 1
  8. SteelersFanIrl

    SteelersFanIrl Well-Known Member

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    They’ll probably be doing another restructure with Ben next year and adding a throwaway year in 2022 like the Saints are doing with Brees this year, that’s assuming he doesn’t retire which is also a possibility.

    Difficult to say what’ll happen with the cap until closer to the time but my own view is that a large increase is probably not likely
     
    • Agree Agree x 1
  9. CK 13

    CK 13 Well-Known Member

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    They are already in cap hell. If this is true then a gutting will come. So it looks like this year it's Super Bowl or Bust. You have to pay the piper and with all the restructures doled out especially Ben even with an increase they would still be hard pressed against the cap.

    Colbert and Tomlin need blame for not developing or drafting OLB talent proper so this team now is in the red with franchising Dupree.

    And what happens if the season is delayed? If players even though they will be tested get the virus? A lot of unknowns.
     
    • Agree Agree x 2
  10. Formerscribe

    Formerscribe Well-Known Member

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    Wow. And people accuse me of posting from hindsight. lol
     
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  11. jeh1856

    jeh1856 Hello

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    This doesn't happen with beer.

    Just saying.
     
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  12. groutbrook

    groutbrook

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    UFC 249, tomorrow night. Excellent card too.

    [​IMG]
     
  13. Daddymac10

    Daddymac10 Well-Known Member

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    You heard it here first ...if the cap go down by 50 or 60 million ...Big Ben will be a cap casualty next year
     
  14. NY STEELERFAN

    NY STEELERFAN Well-Known Member

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    I find it hard to believe the Steelers would eat 22 mil of cap space to free up 19mil.............but if it get's that bad I guess anything is possible!
     
  15. thesteeldeal

    thesteeldeal Well-Known Member

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    We didn’t even see the large increase that was projected this year and that was before all the turmoil this year. I can’t see it going up at all ,only down. We’re still going to have players that need to get paid and teams in better financial situations cap wise will have a advantage if the cap stays the same. IMO.
     
    • Agree Agree x 2
  16. bigbenhotness

    bigbenhotness Well-Known Member

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    Take a pay cut Ben... lol
     
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  17. Vox Ferrum

    Vox Ferrum Well-Known Member

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    If he retires next year that Cap hit is still significant and counted immediately, which certainly would be detrimental in trying to sign more than one of the guys we want to keep. While I think the market will adjust accordingly, there will be key players who will still command big bucks and teams who will have the space to sign them. As for Ben I do believe your first scenario will play out. Unless he gets hurt a lot this year I think he wants to play it out for 2 more years. Likely they give some kind of team friendly extension into 2022 and he retires with a more manageable cap hit.
     
  18. SteelersFanIrl

    SteelersFanIrl Well-Known Member

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    There was never a large increase slated for 2020, it was always 2021 that the new deals were going to kick in. There are many variables that will determine what happens with the cap but the best case scenario that saw forecasts of $ 40m increases in a single year is extremely unlikely now. I can’t see the teams and league wanting to implement large cap cuts. More likely they will agree to a freeze or remove the cap altogether temporarily like they did in the holdout year and let the individual teams decide for themselves how to manage the situation.

    What happens to Ben depends on how he plays next season. If he has fallen off a cliff or if he goes on IR again for whatever reason I think that might be the end for him. The scenario I put forward with a throwaway extension to get his cap hit down is my guess at this point though. I really hope he is healthy and can still play.
     
  19. thesteeldeal

    thesteeldeal Well-Known Member

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    I thought I remember hearing the cap was supposed to be like 220+ for last year. Maybe I’m mistaken ...
     
  20. SteelersFanIrl

    SteelersFanIrl Well-Known Member

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    Didn’t see that but you could be right. Overthecap was working off the normal 10% approx increase which is what transpired. The new TV money and other commercial deals impact the cap from 2021 which is why everyone assumed a big jump then. Even if that money still comes through local revenue from ticket sales etc is probably going to be well down because of Covid19.
     
  21. Vox Ferrum

    Vox Ferrum Well-Known Member

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    That is a very good point. The article I linked in the OP I believe was projecting the lost revenue from just the local ticket sales and concessions. If there is limited or no fans allowed at stadiums the ratings may go through the roof, but will that really translate into increased contract negotiations for renewed broadcast rights? it is really going to be completely new territory for the next year or 2. While executives may be willing to gamble on huge contracts for a proven commodity like the NFL, stockholders may just want to put a hold on spending as companies who advertise may be less than willing to spend big money at this time. I know a lot of speculation, but one thing about most NFL owners has been proven repeatedly, they do not mind spending money that is already negotiated..they do not like giving away one penny more than they have to, lol.
     
  22. Wardismvp

    Wardismvp Well-Known Member

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    Unless they find a vaccine/ treatment I am afraid all of sports are going to take
    a large financial loss including college football and basketball included. The TV networks
    can also only absorb so much lost revenue.
     
    • Agree Agree x 1
  23. Vox Ferrum

    Vox Ferrum Well-Known Member

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    Valid points that we are already seeing played out. Even the larger college conferences are already hurting from the loss of revenue from tournaments and talking about scrapping many lower echelon sports. Football and arguably Basketball are the financial backers for most sports on (at least) division 1). In turn many of those programs are feeders for other amateur events, including the Olympics.
     
  24. Brice

    Brice Well-Known Member

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    This is why I am thinking the TV networks will be looking to expand their NFL coverage. Like a previous post where ABC was looking to expand their coverage into Thur, Sunday and Monday night games; I think other Networks will be thinking the same way and trying to figure out how to put more games on TV. Maybe Friday and Saturday games are going to be a way for Networks to increase their revenue streams.

    Live NFL games are bankable ratings boosters for the major networks that are currently fighting off cable networks.

    I think the next Network deal will be the biggest money maker in history for the NFL and guarantee the Salary Cap is going to go even higher.
     
  25. Vox Ferrum

    Vox Ferrum Well-Known Member

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    That very well could be, but short term outlooks, as well as mid range could very well put a limit on what networks are willing to spend. Without any real guarantees when this thing will end, and even if games will be played networks will be looking at huge losses this year alone. If one player comes down with covid it could derail the entire teams season. While sports hungry fans will tune into anything at this point, what kind of product will be on display without fans in the stadium? Will advertisers even be in a place to spend huge amounts on national TV with the economy in shambles? Not trying to look for doom and gloom, but the landscape is definitely going to change.
     

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