The 2010 NFL season will be uncapped due to the expiration of the leagues collective bargaining agreement. At first the idea of an uncapped season sounds like each team can go out and spend as much as they want and it will mean an explosion in free agent salaries, but that is not the case. Free agency is affected, but not positively across the board and there are new rules and limitations on certain teams. In an attempt to make sense of how the uncapped year affects the Ravens, here is a summary of what I have gathered so far. Feel free to add your thoughts on how the changes might affect the Ravens efforts to improve the team.
1. What are the rule changes in the uncapped year?
The main rule change is that there is no salary cap, but there is also no salary floor. While some teams will look at this as an opportunity to spend, spend, spend, some will see it as the chance to reduce payroll in a tight economy and make more money in 2010. The uncapped year also affect free agency status. Players with expiring contracts and less than 6 year experience will become restricted free agents rather than un-restricted. Players like Mark Clayton and Demetrius Williams would have been unrestricted FA’s under the previous CBA. The uncapped year also relieves teams from having to contribute to certain player benefit programs.
2. What is the Final Eight Plan?(I got this word for word from the NFL’s release on the expiring CBA)
During the Final League Year, the eight clubs that make the Divisional Playoffs in the previous season have additional restrictions that limit their ability to sign unrestricted free agents from other clubs. In general, the four clubs participating in the championship games are limited in the number of free agents that they may sign; the limit is determined by the number of their own free agents signing with other clubs. They cannot sign any UFAs unless one of theirs is signed by another team.
For the four clubs that lost in the Divisional Playoffs, in addition to having the ability to sign free agents based on the number of their own free agents signing with other clubs, they may also sign players based on specific financial parameters. Those four only will be permitted to sign one unrestricted free agent for $5.5 million (estimated) or more in year one of the contract, plus the number of their UFAs who sign with another team. They also can sign any unrestricted free agents for less than $3.7 (estimated) million in year one of the contract with limitations on the per year increases.
3. How does this affect the Ravens in the FA market?
Since the Ravens advanced to the Divisional Round of the play-offs they will be limited in their pursuit of free agents by the “Final Eight Plan.” The Ravens will not be able to sign an unrestricted FA unless they lose an unrestricted FA of their own, or they use their $5.5 million or $3.7 million exemptions. The plan does not count retiring players as losing unrestricted FA’s and this will likely limit the Ravens pursuit of FA’s this off season.
4. Will the rule changes make it more likely that the Ravens remain intact, or will there be a lot of shake-up?
Early indications are that the Ravens will remain largely intact. Because of the uncapped year and their limited ability to sign FA’s from other teams, the Ravens will be in a position where they will need to retain many of their own FA’s, especially the restricted FA’s(Mark Clayton, Fabian Washington) and the players who would have been cut because of a high cap number(Trevor Pryce, Willis McGahee). The Ravens are likely to acquire some FA’s this off-season, but they are more likely to be able to re-sign and keep their own players.
5. What potential free agents could the Ravens pursue?
This is a tough question because it is hard to speculate on how many FA’s the Ravens will lose and how the market shapes up in light of the uncapped year and the current economy. The Ravens need to upgrade the WR position. The Sun’s Mike Preston wrote that the Ravens should pursue restricted FA Malcolm Floyd of the San Diego Chargers. Floyd would be an upgrade, but would cost the Raven a draft pick. At this point there are few other receivers who make sense for the Ravens in free agency. The Ravens could also look to add some depth on the defensive line,but that would require losing a free agent or getting a player to agree to sign at one off the Ravens exemption levels. This could be possible if the FA market does not explode like some anticipate.
The Ravens have needs that could be met in free agency this year, but they are limited by not only the “Final Eight Plan,” but also by their budget. Because the club will have to retain more of it’s high salaried players it leaves less financial flexibility to go out and sign FA’s. Despite their being no salary cap, the Ravens ownership is not likely to break the bank like other teams will. They will want to stick close to their budget and the salary cap could be right back in effect in 2011. The Ravens best shot at improving their weaknesses will come through the draft, but it remains to be seen whether or not they can fill all their holes that way.
It's funny, Steve Bischotti mentioned today that two of his business partners – the St. Louis Rams and the Jacksonville Jaguars – are suffering under this current NFL economy. These are two teams that the city of Baltimore vied for first under relocation – The then L.A. Rams – and then through the expansion process, with the team eventually going to Jacksonville and Carolina. I know we as Baltimoreans think the NFL has it in for us, but here is an instance where I think then commissioner Tagliabue DID have it in for Baltimore. Tags was a Redskin season ticket holder and apparently in then Redskin owner Jack Kent Cooke's payroll. It was clear to everyone that Baltimore had the best package then and it is bearing out in the fact that the Ravens are one of the most financially successful teams in the NFL, while the Rams and Jaguars are suffering. Maybe St. Louis or Jacksonville should have "built a museum", to quote former commissioner Tagliabue.
I get the feeling the Ravens will play with the big boys as much as the rules let them. This isn't going to be like Baltimore Baseball.
I am surprised that this isn't a bigger deal nationally. The new NFLPA Exec Dir. DeMaurice Smith is much more in favor of public confrontation than Gene Upshaw, and much less willing to negotiate behind the scenes. The fight for a new CBA is going to be long and difficult, and if we lose the salary cap it might never return. Can you imagine what the likes of Jerry Jones or Dan Snyder will go to to win? If football loses its salary cap and the labor agreement significantly changes, the game will look dramatically different in 5 years, and that would be a real shame.
You are absolutely right. The lack of a salary cap will send medium market teams like Pittsburgh, Baltimore, and even Indy into the crapper. No way Indy can compete with larger market teams like New York, Philly, and New England. It would ruin the parity that the NFL has mastered so effectively.
I'd hate to see the NFL turn into the MLB where it takes teams five years to build competitive franchises. I know fans like Biscotti, and I do too, but the bottom line (as Ray Lewis would say) is that Baltimore wouldn't be able to afford to compete with big market teams. If ain't broke don't fix it. The NFL certainly ain't broke.
You cannot compare an uncapped NFL to and uncapped MLB.
Take a few seconds to follow my logic. What makes the Yankees far superior to any other team in generating revenue is the YES network. I am thinking that they are the only network that can sell themselves out of market and make a crap load of money. As for the larger markets, that also come into play when building that second tier. NESN is going to generate more money than MASN and therefor the Sox have more money to spend than the O's. After tv revenue,it comes down to ticket sales and merchandise. Over 162 game, the ticket sales definitly has some affect. Merchandise will ebb and flo based on the personelle on a given team.
So lets switch over to football. There are 16 regular season games that are sold by the NFL to different networks. That money gets divided amongst the teams. But there is no way for a big market team to generate significantly more money over TV than another. Without the rights to games, there is just not enough programming to justify the cost. Let's then goto ticket sales, So Dallas and Washington, have the largest stadiums in the NFL and therefore can potentially make more money per game. We are talking about 10-15k seats. Just because a team is in a smaller market, it does not mean they can't sell out. Look at Green Bay, tickets there are some of the hardest to acquire. Baltimore has a season ticket waiting list. There can't be a huge difference in ticket revenue. So finally there is merchandising, and i see some teams having an advantage, but i think it still ebbs and flos. Very rarely does it rely on market size.
What I cannot account for is how deep the pockets are of some owners. It is quite possible (see Dan Snyder) that a person wants to win sobadly that he we throw caution to the wind and choose not to make money on the team. But on the flip side, teams will have to use caution in spending because they don't want to screw themselves if the cap ever comes back.
I do think there will be some disparity in an uncapped year. I just don't think it will be as great as people think. I think a well-run organization like the Ravens and the Colts will do just fine
Sadler…Great points! I often wonder what a Large Market and a Small Market really are. Are the Redskins a Large Market team c'uz of Snyder? Yet are the Nationals a Small Market team c'uz of whoever their owner is?
Chicago is clearly a Large Market, yet neither baseball team is a perennial power. Nor is their football team. Was San Francisco a Large Market when Eddie DeBartolo ran the team in the 80's but is now a Small Market since Barry Bonds stopped playing? Was Baltimore a Large Market in the 90's with 3,000,000 + coming thru the Camden Yards turnstiles but a Small Market team now that the can't draw 2,000,000? One final point…If anyone thinks for a moment St. Louis and Jacksonville are really struggling financially despite all the money flowing in to the Industry, well, well, well, shame on them!
I think there's a half way point between the NFL melt down you spoke of and the fans that think the NFL will become run by big market teams.
You're absolutely right when it comes to TV networks. That is the fundamental difference between the MLB and the NFL. However, if you think that New York and Dallas don't have a better chance with an uncapped year over a team like Green Bay, you're kidding yourself.
The New York/New Englands might not be the NYY/Red Sox franchises, but they'll definitely have more $ than teams that have smaller markets. Not because of television networks, but simply because of how many fans ARE buying merchandise.
There will be a difference in the game itself, but it won't be as bad as the situation baseball is in.
Z Man…The Pittsburgh Pirates, a Small Market team with years and years of losing baseball, were Profitable in 2009…That's wrong! What are they doing with their portion of the Revenue Sharing money???
Building young talent to give to New York or Boston.
If they really do go through with an uncapped year, that will be the end of the way the NFL conducts business. I'm really at a loss here, on one hand it is the players that the people pay to see and that we write about, complain about, discuss, so they should reap the rewards of the league. On the other hand, the owners are the one's taking the risks. I'll grant Bruz this, none of these guys is truly losing money, they're all smarter than that and you wouldn't have billionaires fighting to own franchises, but some are more profitable than others.
Here's my question sports fans, if this deal goes south as it appears to be heading, whose side are you on?
STG — The Players Side. Every time. When the housing market falls, what happens? Properties sit on the market longer and/or sell for less money. When's the last time a major sports league franchise sold for less
than its purchase price? Ever? Anyone really believe if the Orioles went up for sale at midnight tonight that there
wouldn't be a half-dozen offers before you let the family dog out to relieve himself in the morning?
As a side question. What I'm wondering is how the NFL plans to return to a capped league after letting the players taste an uncapped season.
…that's a whole other issue.
If they really do go through with an uncapped year, that will be the end of the way the NFL conducts business. I'm really at a loss here, on one hand it is the players that the people pay to see and that we write about, complain about, discuss, so they should reap the rewards of the league. On the other hand, the owners are the one's taking the risks. I'll grant Bruz this, none of these guys is truly losing money, they're all smarter than that and you wouldn't have billionaires fighting to own franchises, but some are more profitable than others.