What Would Declining Revenue Mean for Players?

GREEN BAY, Wis. – If NFL games are played in stadiums that are empty or a socially distant one-third full, there will be a major blow to revenue.

If games are outright canceled, the financial ramifications will be even larger.

What does that mean for the players? Andrew Brandt, the Green Bay Packers’ former vice president of player finance, tackled that topic for his latest piece for Sports Illustrated.

Brandt cited Paragraph 6 of the Standard Player Contract, which states players will “earn their yearly salaries over the course of the applicable regular season, commencing with the first regular-season game played by Club in such season.”

Wrote Brandt: “The NFL Management Council would likely take the position that players should not receive any of their yearly salaries unless and until the 2020 season begins, whenever that may be. Were the 2020 season shortened, the NFL would look to the above provision and prorate salaries according to number of games played. And in the unfortunate scenario of a canceled 2020 season, the NFL would likely take the same position, arguing that Paragraph 6 of the SPC expressly requires ‘the first regular season played by Club in such season’ to be played.”

Teams are already feeling the financial pinch. Lambeau Field has been closed to the public since March 13. Under Wisconsin Gov. Tony Evers’ emergency order, that will remain the case until at least May 26. While Evers has eased some restrictions on business, it probably will be a slow reopening of the stadium. The closure means no sales at the Pro Shop, no tours of the stadium and Packers Hall of Fame, and no dinners at 1919 Kitchen and Tap. If the pandemic lingers into August, that might mean no fans are allowed at training camp. Training camp is a big moneymaker for the team, with fans from across the country flocking to Green Bay to buy jerseys and tour the historic stadium.

That, potentially, could mean some business decisions need to be made on the football side.

“How would teams skimp on spending with existing 2020 player contracts, you ask?” Brandt wrote. “Well, as anyone familiar with the business of the NFL knows, teams regularly release veteran players on non-guaranteed (and sometimes even guaranteed) contracts, mostly without any lingering financial obligation. Just this week the Bengals removed $17.5 million (Andy Dalton) and the Seahawks removed close to $10 million (D.J. Fluker, Justin Britt) from their player payroll. My sense is there will be similar bloodletting, even more than a “normal” year, in coming weeks and months.”

CLICK HERE FOR ALL OF BRANDT’S STORY.