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NFL Thursday night broadcasting rights adding to the cap...


Big Turk

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Unsure when it goes into effect but the NFL just reached a deal with NBC and CBS to broadcast Thursday night games and will be getting $450 million over the course of the deal, unsure how long it was for...this will be adding to the cap pool but not sure how soon...

 

EDIT: deal was for this year only.

 

So cap either is going up $14 mil or $7 mil depending on how much goes towards the cap...

Edited by matter2003
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Matter- how did you get this so fast? My NFL Mobile sent over to me 15 seconds ago. It looks like NBC will get 5, CBS, retains 5, and the NFLN gets 8 including TR and Saturday late in the season.

 

What I'm interested that matter just shared is what is the net gain over the current CBS/NFLN contract. CBS had 8 so what's the net net on this deal / year? That will tell us the salary cap increase, and most likely is why Whaley is not worried about resigning the best guys this year.

 

I wonder why they don't go further and get closer to all 16 games. I don't see the upside of NFLN maintaining exclusive rights. They are owned by the NFL so they can make a lot more money from the networks.

 

I would bet by 2018 all 16 games are on one of the networks. This will continue to line the owners and players pockets which is fine with me.

 

You can bet the next step to build more revenue will be a 7 th wildcard spot on each side adding two playoff games, then by 2020, the change to either a 17 or 18 game season.

 

It's logical as all companies have one fundamental goal to increase profits. They can offset by increasing roster size, etc.

 

I'm not advocating just predicting what will happen over the next 5-7 years. The NFL is a machine and will keep building their brand.

 

Matter thanks for posting so quickly.

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What I'm interested that matter just shared is what is the net gain over the current CBS/NFLN contract. CBS had 8 so what's the net net on this deal / year? That will tell us the salary cap increase, and most likely is why Whaley is not worried about resigning the best guys this year.

Even if all $450M were split up over the 32 teams, it would increase the cap $14M per team. That's pretty much gone after Glenn signs. As you pointed out, we only really get to add the difference between the old deal and the new deal, AND it probably won't kick in quite so quickly. I doubt Whaley is considering this deal a way out of cap trouble.

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Matter- how did you get this so fast? My NFL Mobile sent over to me 15 seconds ago. It looks like NBC will get 5, CBS, retains 5, and the NFLN gets 8 including TR and Saturday late in the season.

What I'm interested that matter just shared is what is the net gain over the current CBS/NFLN contract. CBS had 8 so what's the net net on this deal / year? That will tell us the salary cap increase, and most likely is why Whaley is not worried about resigning the best guys this year.

I wonder why they don't go further and get closer to all 16 games. I don't see the upside of NFLN maintaining exclusive rights. They are owned by the NFL so they can make a lot more money from the networks.

I would bet by 2018 all 16 games are on one of the networks. This will continue to line the owners and players pockets which is fine with me.

You can bet the next step to build more revenue will be a 7 th wildcard spot on each side adding two playoff games, then by 2020, the change to either a 17 or 18 game season.

It's logical as all companies have one fundamental goal to increase profits. They can offset by increasing roster size, etc.

I'm not advocating just predicting what will happen over the next 5-7 years. The NFL is a machine and will keep building their brand.

Matter thanks for posting so quickly.

NFLN has to retain a certain number of games to get fees from cable providers for carrying the channel. If I'm right it looks like last year was $300 million...

Therese also a lag on the calculations I believe. So whatever the gain is would be realized 1-2 years after money starts flowing I think.

Even if all $450M were split up over the 32 teams, it would increase the cap $14M per team. That's pretty much gone after Glenn signs. As you pointed out, we only really get to add the difference between the old deal and the new deal, AND it probably won't kick in quite so quickly. I doubt Whaley is considering this deal a way out of cap trouble.

Simply waiving Mario and restructuring Clays roster bonus into a signing bonus will free up close to $20 million.

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NFLN has to retain a certain number of games to get fees from cable providers for carrying the channel. If I'm right it looks like last year was $300 million...

 

Simply waiving Mario and restructuring Clays roster bonus into a signing bonus will free up close to $20 million.

I know there's things to do to give us some cap space. I was just saying I don't think Whaley is relying on something like this deal to get them through 2016.
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You'd think one of these years they'd go to double headers on Monday nights like they do the 1st week of the season. 7 and 10 for starting times, and try and make the 2nd game mostly west coast teams. Personally I'd prefer that as would then watch the entire 1st game. and people in Pacific times would likely watch the entire 2nd one.

 

 

Matter- how did you get this so fast? My NFL Mobile sent over to me 15 seconds ago. It looks like NBC will get 5, CBS, retains 5, and the NFLN gets 8 including TR and Saturday late in the season.

What I'm interested that matter just shared is what is the net gain over the current CBS/NFLN contract. CBS had 8 so what's the net net on this deal / year? That will tell us the salary cap increase, and most likely is why Whaley is not worried about resigning the best guys this year.

I wonder why they don't go further and get closer to all 16 games. I don't see the upside of NFLN maintaining exclusive rights. They are owned by the NFL so they can make a lot more money from the networks.

I would bet by 2018 all 16 games are on one of the networks. This will continue to line the owners and players pockets which is fine with me.

You can bet the next step to build more revenue will be a 7 th wildcard spot on each side adding two playoff games, then by 2020, the change to either a 17 or 18 game season.

It's logical as all companies have one fundamental goal to increase profits. They can offset by increasing roster size, etc.

I'm not advocating just predicting what will happen over the next 5-7 years. The NFL is a machine and will keep building their brand.

Matter thanks for posting so quickly.

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You'd think one of these years they'd go to double headers on Monday nights like they do the 1st week of the season. 7 and 10 for starting times, and try and make the 2nd game mostly west coast teams. Personally I'd prefer that as would then watch the entire 1st game. and people in Pacific times would likely watch the entire 2nd one.

 

 

 

I've wondered this too.

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Even if all $450M were split up over the 32 teams, it would increase the cap $14M per team. That's pretty much gone after Glenn signs. As you pointed out, we only really get to add the difference between the old deal and the new deal, AND it probably won't kick in quite so quickly. I doubt Whaley is considering this deal a way out of cap trouble.

That would still be 14m worth of cap space, b/c otherwise you'd be taking the money from the savings gained by cutting (or in the unlikely scenario, renegotiating and extending) Mario. In this scenario, that 13-14m can be spent on someone else. However, as you and others have said, this may be a moot point as this money may not apply to the cap this year.

 

Anyway, while they're right up to the cap as it looks now, there is at least some wiggle room between Mario's likely cut and a bunch of contracts (Clay, McKelvin, Wood, etc.) which can be renegotiated. Again, last year, the Dolphins were right up against the cap and were somehow players in FA. The Bills are not in a dire situation, as the "doooomed" chorus here would have everyone believe; it's just not really a fun situation where they can go on a spending spree. They can probably sign their own where they want (Glenn, Incognito, maaaybe Bradham), add some role players, and if one big ticket item is out there that they really want, they'll just do a ton of fancy restructuring if they can.

I know there's things to do to give us some cap space. I was just saying I don't think Whaley is relying on something like this deal to get them through 2016.

That being said, I do agree that Whaley is not counting on these savings, and saw this reply after posting, so sorry to pile on.

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Unsure when it goes into effect but the NFL just reached a deal with NBC and CBS to broadcast Thursday night games and will be getting $450 million over the course of the deal, unsure how long it was for...this will be adding to the cap pool but not sure how soon...

EDIT: deal was for this year only.

So cap either is going up $14 mil or $7 mil depending on how much goes towards the cap...

You're missing some details on this. The 2015 revenue from NBC for Thursday Night Football was $300M so the $450M combined revenue from NBC and CBS is only a $150M increase. The players' share is between 47% and 48.5%. That amount is divided by 32 teams. So we've got $150M*.485/32= $2.27M

 

So that's a $2.27M per team cap increase (or $2.2M on the low end if 47% is used). It's not nothing, but it isn't some huge increase.

Edited by BarleyNY
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You're missing some details on this. The 2015 revenue from NBC for Thursday Night Football was $300M so the $450M combined revenue from NBC and CBS is only a $150M increase. The players' share is between 47% and 48.5%. That amount is divided by 32 teams. So we've got $150M*.485/32= $2.27M

 

So that's a $2.27M per team cap increase (or $2.2M on the low end if 47% is used). It's not nothing, but it isn't some huge increase.

Gotcha...I wasn't sure if that was being added in already since no actual deal was in place or if the NFL just used a guesstimation of what it would be...

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Koolaid - good point on the extra bye. I would speculate they hold that back until they add games meaning 17 vs. 16 and 3 preseason games, and maybe that extra playoff wildcard.

 

They throw a bone with 2 byes, one in the first half and one in the second half, and probably are willing to add headcount tot he roster. The increased revenue will make the PBA happy.

 

This will go on for years while they continue to warm up the international scene whether it's Europe, or possibly a first step in Mexico, or Canada. These guys have a 10 year plan like any other major company. I worked for years in management for the largest medical device company in the world worth more than the NFL, and they always had a 10 year plan evolving every couple of years. The NFL already has an idea of what they will do from 2020-2030. They just won't go public too far in advance.

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You'd think one of these years they'd go to double headers on Monday nights like they do the 1st week of the season. 7 and 10 for starting times, and try and make the 2nd game mostly west coast teams. Personally I'd prefer that as would then watch the entire 1st game. and people in Pacific times would likely watch the entire 2nd one.

 

 

Sounds good, but with Thursday, Sunday, Sunday night & two Monday games you really water down the product available for the "traditional" Sunday games. (Fox & CBS would squeal like pigs)

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Koolaid - good point on the extra bye. I would speculate they hold that back until they add games meaning 17 vs. 16 and 3 preseason games, and maybe that extra playoff wildcard.

 

They throw a bone with 2 byes, one in the first half and one in the second half, and probably are willing to add headcount tot he roster. The increased revenue will make the PBA happy.

 

This will go on for years while they continue to warm up the international scene whether it's Europe, or possibly a first step in Mexico, or Canada. These guys have a 10 year plan like any other major company. I worked for years in management for the largest medical device company in the world worth more than the NFL, and they always had a 10 year plan evolving every couple of years. The NFL already has an idea of what they will do from 2020-2030. They just won't go public too far in advance.

 

I agree.... but the NFL has been pretty public about wanting a team here in London. 2024 is, I believe their informal target. I also think the 17th and 18th game will be back on the table once the LA issue is finally put to bed. That was priority 1 for the NFL, get a team back in that market. Next will come the additional play-off spot, then the extra regular season game(s) then expansion.

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That's true as would ST be cut back. Kind of laugh when the "knowledgeable DTV rep who's tryign to sell me on buying Sunday Ticket in that I'll be getting to watch 15 games every week.

 

Since everyone seems i.e. players, seem to not like Thursday night games, why not go to the Monday Doubleheader and eliminate Thursday nights instead.

 

Sounds good, but with Thursday, Sunday, Sunday night & two Monday games you really water down the product available for the "traditional" Sunday games. (Fox & CBS would squeal like pigs)

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