NFL not expected to face labor dispute like MLB

National TV contracts are game changers

Andy Simms

CLEVELAND, Ohio (WOIO) - Major League Baseball has had issues getting back on the field, and not just because of player safety. Games without fans means lower revenues for the owners, leading owners to say they would need to pay players less than pro-rated salaries.

The NFL is also expected to have empty stadiums, but they should not have the same issue as MLB clubs. “There may be some [owners] that cry a little poor, but the fact is the TV revenue money in football is such a huge part of the revenue pie that the NFL can survive if they had to cut fans back,” said Cleveland-based NFL agent Andy Simms.

NFL teams reap the benefits of national TV contracts more than MLB teams. Simms feels the biggest financial ramification for the NFL will not be 2020 related at all, but will be the 2021 salary cap. “The salary cap is set by a formula, so if revenue is down, gate receipts are down, you still have the money coming in from the TV contracts, apparel and all the marketing. In general, the salary cap is set by a percentage of that gross revenue.”

The next shoe to drop in the NFL is what the procedures will be for training camp and when players, coaches and staff members start testing positive.

Copyright 2020 WOIO. All rights reserved.