NFL Salaries likely to jump significantly again, regardless.

[Patler]

ESPN has agreed to pay$1.9 billion/year for broadcast rights, up from $1.1 billion in the old contract. This will be the new yardstick for deals with the other networks. If there is a similar 60% increase in those deals, the pot for salaries will escalate significantly.

What isn't clear is if part of the increase is due to an expected 18 week schedule rather than 16 weeks in the old contract.

This type of increase might simplify the CBA discussions. The players can get a much larger overall pot to divide even with concessions to the owners on the income sources and percentages used to calculate a salary cap.

[HarveyWallbangers]

The money that Tramon and Bishop received is going to look like bargains.

[MichiganPackerFan]

When are the Fox/CBS contracts up? What about NFL Sunday Ticket with DirecTV? I believe a bulk of the tv revenue comes from those two sources.

[Patler]

When are the Fox/CBS contracts up? What about NFL Sunday Ticket with DirecTV? I believe a bulk of the tv revenue comes from those two sources.

I'm not sure when the others are up, but ESPN has been paying a lot more than the others even under their old agreement at $1.1B annually. Fox pays $720 million annually, CBS pays $620 million and NBC pays $603 million.

[MichiganPackerFan]

I'm not sure when the others are up, but ESPN has been paying a lot more than the others even under their old agreement at $1.1B annually. Fox pays $720 million annually, CBS pays $620 million and NBC pays $603 million.

Are you sure on the Fox/CBS numbers? As I recall when that package was up for bid, it was a 4yr / $7b agreement. DirecTV adds a couple more $b too.

[Patler]

Are you sure on the Fox/CBS numbers? As I recall when that package was up for bid, it was a 4yr / $7b agreement. DirecTV adds a couple more $b too.

I can only go by what I read. Those are the numbers that were published yesterday in the article about ESPN.

[Patler]

Are you sure on the Fox/CBS numbers? As I recall when that package was up for bid, it was a 4yr / $7b agreement. DirecTV adds a couple more $b too.

You might be remembering the total package:

($720 million + $620 million + $603 million) x 4 = $7.77 Billion.

[MichiganPackerFan]

You might be remembering the total package:

($720 million + $620 million + $603 million) x 4 = $7.77 Billion.

I did that math thinking it might be it. I wonder if there was a lump sum down payment, because when those contracts came out, it was something like (Fox + CBS) 4/yrs $7b + DirecTV 5-7(?)yrs $4b + ABC MNF + ESPN SNF.

[pbmax]

WSJ and AP agree with the numbers Patler found:

http://online.wsj.com/article/SB1000...googlenews_wsj

General Electric Co.'s NBC Universal unit pays $600 million a year to broadcast "Sunday Night Football." CBS Corp. pays about $620 million for its slate of Sunday afternoon AFC games, while News Corp.'s Fox pays about $712 million for the Sunday afternoon NFC games. News Corp. also owns Dow Jones, publisher of The Wall Street Journal.

But I don't think it will change much about the negotiation. Its not a total dollars battle. Its over the percentage. And such a TV deal undercuts part of the owner's economic argument.

[Patler]

WSJ and AP agree with the numbers Patler found:

http://online.wsj.com/article/SB10001424052748704733104576066200315643240.html?mod=googlenews_wsj

But I don't think it will change much about the negotiation. Its not a total dollars battle. Its over the percentage. And such a TV deal undercuts part of the owner's economic argument.

It might also undercut the players arguments against the percentage changes asked for by the owners. The players have argued it would mean significant salary cuts for the player. If all the contracts go up by percentages similar to the ESPN deal, the dollars dedicated to player salaries can increase significantly even with the percentage decreases asked for by the owners.

The overall money pot will get significantly larger. Everyone will get increases, players and owners. They just need to decide the split between them. When average player salaries exceed $2million/year, fans will not be sympathetic to either side. There will be a lot of pressure on both sides to get an agreement done.

[pbmax]

But that is just a matter of point of reference and PR. Under the old terms, the salary would be x. Under proposed terms, it would be x-minus-something. In the same way the owners manage to talk about additional costs without talking about additional revenue.

I doubt it will be fan considerations that will make one side move, it hasn't before. Its going to come down to legal maneuvering. The players likely cannot outlast the owners, unless some owners are truly unprepared. If it drags out long enough that some players need to go back, the Union will not accept the work rules and will decertify again. Then it will be a battle of legal arguments.