Tuesday, July 26, 2011

New CBA is great for Buffalo

   I'm going to go way against popular opinion when I say this.  But now that the smoke has cleared, I believe that the NFL's temporary lockout was ultimately a good thing.
   Sure.  It was sickening to watch rich people squabble about money.  The verbal shots back and forth were frustrating and ridiculous.  And at times, the threat of a lost season was very real.
   But in the end, the only loss was a single preseason game and some offseason workouts.  The gain was a much better financial structure for the NFL, a better plan for increasing competition - and a solid revenue sharing plan that could be the difference between the Bills staying in Western New York or eventually moving on to a bigger market.
   Like I pointed out in May (see article), this collective bargaining agreement was going to be vital to the future of the Buffalo Bills.  Owner Ralph Wilson specifically opposed the previous deal because he knew it would make competition very difficult for small-market teams.
   On Tuesday, Wilson told CBS Sports that he was very happy with the new agreement - which should speak volumes to Bills fans.  Below, I've detailed some of the changes that will have the biggest impact on the team.

1)  Revenue Sharing
   Wilson's biggest complaint with the previous CBA was about revenue sharing.
   In the NFL, only some revenue can be distributed equally amongst the 32 NFL franchises (such as television contracts and jersey sales).  Other revenue streams (such as stadium box seats and various team-licensed products) does not need to be split.
   This allows a large market franchise - like Dallas, Washington or New York - to make much higher profits than the smaller franchises - such as Buffalo, Cincinnati or Jacksonville.  Despite the disparity, all 32 teams are expected to abide under the same salary cap rules and compete for the same free agents.
   The new plan tries to make things more equal by having the top grossing teams provide some supplemental revenue to those on the bottom of the totem pole.  Although there will be some qualifiers to be eligible for that money, it's a plan that will almost certainly benefit the Bills - traditionally one of the lower income franchises.
   To be honest, I never thought some of the owners (see Jerry Jones, Robert Kraft) would go for something like this.  But I was wrong and I must applaud them for it.
   Small market teams like the Buffalo Bills, Green Bay Packers, Kansas City Chiefs and Pittsburgh Steelers are just as important for the NFL as those in big cities.  It seems that big owners realized this and made a decision that might affect their bank accounts, but will be good for the sport as a whole.

2)  Salary Cap & Floor
   No more talk about Ralph Wilson being cheap.
   Along with re-installing the salary cap on player salaries, the NFL will be increasing its salary floor to about 90 percent of the cap.  For 2011, that means all teams will have to spend at least $108 million and cannot spend more than $120 million.
   Of course, the successful teams will still be the ones who use their finances wisely.  But certain owners can no longer save money by letting their unsigned stars walk and ignore the free agent market.
   According to ESPN, the Bills are currently at about $84 million.  That means they can add between $24-36 million in salaries before the start of the season.  It gives them some wiggle room to negotiate with some decent players.

3)  Rookie Wage Scale
    It's one thing to pay $20 million per year to a future Hall of Famer like Peyton Manning or Tom Brady.  It's quite another to shell out a similar contract for a guy fresh out of college that hasn't taken a snap in the big leagues. 
   Over the years, skyrocketing rookie contracts have gotten out of control - basically penalizing teams that draft high and forcing teams to cut solid veterans to make room for unproven youngsters.  Creating a rookie pay scale is good for the NFL in many ways.
   First, it eliminates rookie holdouts, allowing players to get into training camp earlier.  Second, draft picks will now have to perform well to receive their big payday (most players will now become unrestricted free agents after four years).  I'm expecting more motivated young players coming into the NFL and a lot less busts.
   For the Bills, it will mean getting quite a bargain on their first round pick Marcel Dareus.  Last year, defensive tackle Gerald McCoy was also taken at the #3 spot, and was signed to a $55 million, five year contract.  Dareus is expected to make around $5 million per year.
   It should free the team up to re-sign their own free agents (Paul Posluszny, Drayton Florence) and go after a couple big names on the market.


UPCOMING NFL SCHEDULE
Tuesday:         Teams can sign their draft picks
Friday:            Bills start training camp;  Free agent signings begin

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