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Thread: Pay Cuts

  1. #1
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    Pay Cuts

    Major League Baseball is looking at tiered salary cuts for 2020. For obvious reasons the owners have no idea how to project revenue going forward. So how do you come up with a fair contract for a Dak Prescott (example) when ticket sales are in question? I bet this issue is a speeding train for every team out there. Some of the players are now millionaires with fancy legal counsel. A second viral wave in the fall could have drastic economic consequences for owners if they proceed as if everything's everything.

  2. #2
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    I donít know how it is for baseball but Iíd be surprised if that happened for the NFL. Ticket sales are a drop in the bucket with all the tv deals the NFL has set up

  3. #3
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    Quote Originally Posted by beastlyskronk View Post
    I don’t know how it is for baseball but I’d be surprised if that happened for the NFL. Ticket sales are a drop in the bucket with all the tv deals the NFL has set up
    About a third of the the Broncos revenue is from ticket sales, so its really not a drop in the bucket.

  4. #4
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    Quote Originally Posted by teetdogs View Post
    About a third of the the Broncos revenue is from ticket sales, so its really not a drop in the bucket.
    Maybe for the team, but player salaries are paid out by all sources of revenue the NFL generates so the NFL wouldnít really have a reason to cut dollars off players contracts. The NFL makes billions off of their tv deals and could pay the whole league off that alone. I saw a report saying that on average a NFL team makes 7 million off ticket sales, and if thatís true it isnít even a 1/3 of the salary cap. Iím not sure how they divy out the money but local revenue (ticket sales, merchandising, etc) is probably used more for employees, stadium upkeep, and things of that nature.

    Iím not sure how it works for MLB but Iím sure they looked into this due to them not having a salary cap at all as smaller market teams could suffer if this virus goes on for awhile.

  5. #5
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    Quote Originally Posted by beastlyskronk View Post
    Maybe for the team, but player salaries are paid out by all sources of revenue the NFL generates so the NFL wouldn’t really have a reason to cut dollars off players contracts. The NFL makes billions off of their tv deals and could pay the whole league off that alone. I saw a report saying that on average a NFL team makes 7 million off ticket sales, and if that’s true it isn’t even a 1/3 of the salary cap. I’m not sure how they divy out the money but local revenue (ticket sales, merchandising, etc) is probably used more for employees, stadium upkeep, and things of that nature.

    I’m not sure how it works for MLB but I’m sure they looked into this due to them not having a salary cap at all as smaller market teams could suffer if this virus goes on for awhile.
    The main difference in TV deals for MLB is that the teams negotiate with regional networks. Some teams have negotiated great deals, and others have not. In 2016, the Dodgers TV deal with Spectrum Sportsnet LA, netted them $204 million in revenue. Their payroll in 2016 was $223 million on opening day, the largest in the league.

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