The NFL, which generates about three-quarters of its $ 15 billion annual revenue from the sale of national broadcast rights, endorsements, and merchandise, is much less dependent on ticket sales and local revenue than other professional sports leagues. .
Still, the league will lose $ 2 billion to $ 4 billion in revenue this season if fans aren’t available to buy tickets, luxury suites, food, merchandise, and parking passes. The owners expect the players, who receive about 48 percent of the league’s revenue, to absorb a proportional amount of those losses. Typically, the salary cap is reset each February based on earnings expectations for the upcoming season.
If local bans on large gatherings remain, the lack of fans could be especially difficult for the Rams and Chargers in Los Angeles, and the Raiders in Las Vegas, which are opening new stadiums this season. The Dallas Cowboys, Denver Broncos, and other teams that routinely play in front of large crowds would also be disproportionately hurt, even if local regulations allow them to admit some fans.
The dilemma facing the league and the union is how quickly to recoup those losses. If the salary cap is drastically lowered next season to recoup losses quickly, free agents could be hurt because teams would have far less money to spend. If the league and union reduce the salary cap over a series of years to spread the losses, a future generation of players will end up sharing the burden.
While the pandemic forced Major League Baseball, the NBA, and other leagues to significantly shorten their seasons, the NFL has been able to operate its offseason largely on schedule, albeit virtually. Free agency, draft and team volunteer trainings were done on time. The league and union have approved safety protocols that have allowed coaches and front office staff to return to the team’s facility.
But the NFL and the union have yet to agree on testing and quarantine guidelines for the thousands of players who are supposed to start training camp in late July.
In an open letter to players sent June 30, JC Tretter, union president, said players should not let management dictate the terms of when and how they return to training camp.
