What We Know About The CBA And How It Affects The Chiefs

Reviewing all the CBA stuff in the owners proposal myself. Good run down here. -Joel

I'm a bit bored and wanted to take a peak at how the leaked information could effect the Kansas City Chiefs.

Revenue Split

Players receive 47 to 48 percent of revenues, less than the roughly 50-50 split in the previous deal.

Unlike the previous CBA , where $1 billion was skimmed off the top, the new revenue model is supposedly based upon all revenue. This is to occur after this season is completed. Owners will receive approximately 52% and players 48%. There are provisions for the owners to have a higher percentage in the event of certain revenue targets are not met. Over a 10 year period the players percentage should not be below 47%. This seems to benefit the owners if over the next few seasons the economy continues to sink and they need extra money for operating expense and such. The downside is that they will be required to supplement the players when profits increase.

Next season, In 2012,  the players will receive, 55% of national media revenue, 45% of NFL Ventures revenue, and 40% of local team revenue.

The positive for the owners is if that spend on stadium investment they will receive a credit of up to 1.5% of revenue each year. Arrowhead recently had a major overhaul done to it... so it might be a few years until this comes back to help the taxpayers in Kansas City. Clark can make minor renovations to Arrowhead and still recoup some of the losses that are occur making small investments into the stadium.

The owners forged change in the system  seeking a change in the splitting of a net revenue share of 50/50, Owners initially offered $1 billion less, but it appears that the final deal will result in approximately $200 million in positive change for them. This number could drastically increase in number depending on how the NFL grows. This was the owners’ top priority seeking to extract significant monies, as well as a credit for stadium spending.

Rookie Pay:

Sets new limits on the amount of guaranteed money  in rookies’ contracts and establishes uniform contract lengths. First-round  draft picks are to sign four-year contracts with fifth-season options; rookies drafted
in the second to seventh rounds are to sign four-year contracts.

Drafted rookies will sign four-year deals with their clubs. All undrafted rookies can sign three-year deals with their prospective suitors. Top ten picks in the NFL Draft, are eligible to a fifth-year options at an average of the top 10 veteran salaries at a player’s respective position. Players selected 11-32 in the draft will have salaries that average of the top 3-25 salaries at a player’s respective position.This means that Jonathon Baldwin would get a 4 year deal at ~$6.5 million guaranteed money (as this is the average in 2009 I assume it will be slightly higher).

Dwayne Bowe our 23rd pick in the 2007 draft will be set to make $2.765 million in 2011. His original contract was a 5 year deal worth $9 million. D. Bowe started out at $2.2 million and it appears that J Baldwin will average ~$1.65 million per year.

Dan Williams was selected with the 26th pick in last years draft. He signed a 5 year deal worth approximately $8,940,000. This is an average of $1.78 million per year... 

Rookies at the top of the Draft appear to be sacrificial lambs of this deal. Beyond that, rookies in rounds 2-7 will not be affected much. The Chiefs along with most every other franchise should benefit  from the rookie wage scale. This could change in the long term as veterans get more money thrown their way.

There will also be what is described as "anti-holdout" provisions. This means that rookies will be in camp every year. Hopefully this is a means of cutting down the number of divas in the NFL, but that is unlikely.

Safety Rules:

The number of weeks of offseason workouts is reduced from 14 to 10. The number of allowable organized team activities is cut from 12 to nine. The number of full-contact practices in training camp and the regular season are reduced. And there will be be no more two-a-days (days with two full-contact practices) during training camp.

 Offseason workout programs, OTAs and time at the facility will all be curtailed compared to the past.  And training camp will feature less padded practices and contact.

This appears to be a win for the players since they pushed for less hitting and a reduced offseason work.  Todd Haley and other evaluators probablywill not like the limited time they  get to see players before August

This issue was easy to negotiate by the owners, especially with the focus on health and safety. I guess we shall see in the upcoming seasons if this helps out with the overall health and safety of the players.

Salary Cap

Set at $120.4 million per team, not counting $22 million in benefits per team. That’s down from $123 million per team the last year there was a cap in 2009, although each team may borrow $3 million salary cap space this year from a future season. Each team must spend at least 89 percent of the salary cap beginning in 2013.

Owners agreed to a 2011 Salary Cap of $120.375 million with increases depending on the share of revenues each year.

The amount allocated to salary and bonus money in 2009 was $123 million. While the numbers look like a $3 million decrease per team  than in  2009, the Players have a $3 million this year to borrow against future years. Owners desiring a different model, the players held the line at roughly the same level as the last year of a Cap.

Cash Minimum (Guaranteed Spend)

In 2011 and 2012, there is league-wide commitment to spend 99% of the Cap.

In 2013-16 and 2017-20, this number drops to 95%. Also during these years, each team must commit to cash spending of 89% of the Salary Cap.

This is the most player friendly aspect of the deal. Previously cap minimums but not cash minimums, requiring teams to collectively spend hard cash to the level of the cap. This requires more spending on players.

Minimum Salaries

First-year minimum salary will go from $320,000 in 2011 to $375,000. The second year minimum salary will rise from $395,000 in 2010 to $450,000.  This is a rise of $55,000 from 2010 levels, in all minimum salaries. The minimums will rise $15,000 per year from 2012 and beyond

Half of the players in the league are playing under minimum salaries and these are healthy increases.

18-Game Schedule

This was a deal breaker for the Players, especially in  the increase of concussions. The proposed agreement delays an enhanced season until at least 2013, where the addition of any extra games must be approved by the NFLPA.

In light of the brutality of the game and the increased numbers on the injured reserve list this was a priority issue for the players. There appears to be an opening for the future, however, with the right compensation to the players.I haven't found any concrete details about future, but it is assumed that this is open untill stated it is closed for 10 years (I imagine its highly unlikely)

Supplemental Revenue Sharing

The NFL unilaterally implemented revenue sharing mechanisms on the day that the owners voted. The players have had this sprung on them at the last minute. More details on the supplemental revenue sharing needs to come out before this really can get discussed.

This appears to be an owner-to-owner issue... yet  the players want to ensure that the is language included that mandates teams to commit their revenue sharing funds to player spending.

Recertification

This has become a highly divisive issue. In order to recertify, 50% + 1 of the players must vote in favor of reconstituting the union.

Owners want this vote to take place through the internet. This would allow the players to quickly agree to the proposed CBA. Players want to proceed cautiously, knowing if they re-certify quickly, it can be used against them in the future. This could be why we are seeing the players up in arms.

Players feel like the owners are coercing the recertification by dictating the terms of recertification. This pressure violates federal labor laws and could be bad news for us fans if there is any truth to these allegations.

Other  Issues

Certain issues which remain such as workers’ compensation, disability, benefits, personal conduct policy, drug testing and must be collectively bargained. This means that final resolution of these issues cannot occur until the NFLPA recertifies.

Players have requested an opt-out clause at the 7-year mark. The proposed agreement contained no such provision.

There is also talk about Vincent Jackson wanting to be compensated $10 million...

Now I'm heading to bed. I'm sure that I missed a few things, but I've tried to put everything in a one stop shop and how it might effect us in the future. It also appears that both sides have received things that they were wanting in the contract. Here's to the players... and them stopping their posturing and sign off on this deal.