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Players are to recieve 59.5% of the NFL's total revenues. That determines the salary cap. Teams at spend least 56% (cap floor) of the salay cap on players.
MIKE SHERMAN IS THE ONLY GM IN NFL HISTORY WHO NEVER MISSED THE PLAYOFFS
"Meanwhile, individual clubs have to spend at least 84% of the Salary Cap on player salaries and benefits each year....."
"What's behind the NFL Salary Cap?
In return for agreeing to free agency, the owners got a Salary Cap which was first implemented in 1994. The Salary Cap is essentially equal to 60% of Total Revenues and includes both player salaries and benefits. Prior to 1993, NFL players historically received an average of about 40 to 50% of the league's revenues in salaries and benefits. Under the current Collective Bargaining Agreement, however, players are guaranteed a minimum of 50% of Total Revenues at least through 2009. This is perhaps the greatest benefit achieved in the CBA.
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How does the Salary Cap operate?
CBA rules concerning signing bonuses and renegotiation rights allow total club expenditures to exceed the cap in any given season. The main reason for this is that under CBA rules all signing bonuses are allocated equally over the years of the player's contract. For example, suppose a player signed a four-year contract in 2006 for $1 million per year, plus a $2 million signing bonus. Even though the player received $3 million in the first year ($2 million signing bonus plus $1 million in salary), only $1.5 million counted against the cap that year.
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How is the cap adjusted?
The free agency/cap system has built-in protections for players assuring that various dollar amounts for minimum salaries and tenders will increase along with league revenues during the term of the Collective Bargaining Agreement. Since gate revenues increase each year along with built-in increases in network TV contracts, there is a higher cap each year. Meanwhile, individual clubs have to spend at least 84% of the Salary Cap on player salaries and benefits each year, and the clubs as a group have to average over 50% to be in compliance with the CBA rules."
Players are to recieve 59.5% of the NFL's total revenues. That determines the salary cap. Teams at spend least 56% (cap floor) of the salay cap on players.
I think you've mis-stated how it works. The 59.5% is the number used to calculate the salary cap - total revenue divided by 32 teams times .595), which is not necessarily what the players will receive. The minimum the players receive is 84% of the salary cap (same as 50% of the total revenue). So what the players receive appears to be somewhere between 50% and 59.%% of total revenue - depending on how much leftover cap space the teams have on average. My guess is that the number is much closer to 60 than 50.
Players are to recieve 59.5% of the NFL's total revenues. That determines the salary cap. Teams at spend least 56% (cap floor) of the salay cap on players.
I think you've mis-stated how it works. The 59.5% is the number used to calculate the salary cap - total revenue divided by 32 teams times .595), which is not necessarily what the players will receive. The minimum the players receive is 84% of the salary cap (same as 50% of the total revenue). So what the players receive appears to be somewhere between 50% and 59.%% of total revenue - depending on how much leftover cap space the teams have on average. My guess is that the number is much closer to 60 than 50.
Scott, doesn't that assessment suggest that most teams are sitting at the salary cap floor? I would think most are closer to the ceiling and that anything much less than 60% might be a tad conservative (or am I misunderstanding what you're saying?)
"Greatness is not an act... but a habit.Greatness is not an act... but a habit." -Greg Jennings
I used it as a source in my the Economic thesis paper.
You actually write your own papers now? Gotta admit, you've come a long way since Greenspan.
Scott, you know undergrads don't write theses.
Sincerely,
Inspector Clouseau
Well, Inspector :P , I wrote a thesis for my undergrad degree. It wasn't required for graduation; only required if I wanted to graduate with honors and cum laude/magna/summa.
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