NFL, which generates about three-quarters of $ 15 billion in annual revenue from the sale of broadcast rights, sponsorship, and national merchandise, is less dependent on ticket sales and local revenue than other professional sports.
However, the tournament will lose between $ 2 billion and $ 4 billion in revenue this season if fans aren’t present to buy tickets, luxury rooms, food, merchandise, and parking passes. The owners expect the players, who receive about 48 percent of the league’s revenue, will absorb a corresponding amount of those losses. Usually, the salary limit is reset every February based on revenue expectations for next season.
If local bans against major gatherings are maintained, the lack of fans could be particularly difficult with the Rams and Chargers in Los Angeles and the Raiders in Las Vegas, which will open new stadiums. this season. The Dallas Cowboys, Denver Broncos and other teams that regularly play in front of large crowds will also suffer disproportionately hurt, even if local regulations allow them to admit some fans.
The dilemma facing leagues and alliances is how quickly they can overcome those losses. If the pay limit is cut significantly next season to recoup losses quickly, free agents could be hurt as teams will have less money to spend. If the federation and the alliance lower salaries for a series of years to allocate losses, a future generation of players will end up sharing the burden.
While the pandemic forced Major League, NBA and other leagues to significantly cut their seasons, the NFL was able to run off its season largely on schedule, albeit virtually. Free agency, draft and voluntary team workouts were held on time. Confederation and coalition safety protocols have allowed coaches and office staff to return to team facilities.
But the NFL and the union have yet to agree on inspection and quarantine guidelines for the thousands of players reportedly starting the training camp at the end of July.
In an open letter to the player sent on June 30, JC Tretter, the president of the union, said that the players should not let the manager dictate the terms of when and how they return to training.