NASSAU, The Bahamas – The NFL Players Association’s annual meetings moved into a third day today with a focus on the salary cap, revenues, benefits, and the union’s budget and finances.
Salary Cap director Mark Levin stressed the importance of “cash over cap,” the more than $200 million in compensation that the players received in 2012 beyond the $120.6 million cap per team. Under the collective bargaining agreement that ended the 2011 lockout, players receive 55 percent of NFL media revenues, 45 percent of revenue from league ventures such as the NFL Network and NFL Properties and 40 percent of local revenues such as stadium signage and naming rights.
Players are guaranteed between 46 and 48 percent of revenues in the salary portion of the salary cap each year. Benefits (more than $700 million in 2012) raised that level to more than 54 percent of all revenues in the first year of the agreement. This year’s numbers are in the process of being finalized. And where not long ago, clubs spent as little as 68 percent of their cap allowance and Oakland was 16 percent under the cap in 2012, going forward all clubs will not be allowed to be below 89 percent of the cap over a four-year period with a league-wide average of 95 percent over the same span.
Levin noted that 20 teams spent “cash over cap” last season, pushing the total to $4.066 billion, which was 105 percent of the cap. Clubs also averaged $6.25 million In cap carryover from 2011.
This year’s cap is $123 million with each club also responsible for $24.2 million in benefits, up from $22 million in 2011. All told, players are receiving more than $500 million than they did in 2008. And these numbers will only rise when the new contracts with the NFL’s national television partners kick in beginning in 2014.
Senior Benefits Director Miki Yaras-Davis reviewed the various benefits areas which include: the insurance plans (medical, dental, life); severance; the Gene Upshaw Health Reimbursement Account (HRA); the annuity plan; Second Career Savings (401-K); and the Bert Bell/Pete Rozelle Retirement Plan.
Players with at least three credited seasons (at least three games each year on an active roster, injured reserve or the physically unable to perform list) become vested and are eligible for these benefits. Insurance covers five years after a player’s career ends. This year’s severance payments will be $17,500.
Players who are credited with at least four seasons receive an annual club contribution of $25,000 toward the HRA to a lifetime maximum of $350,000, up from $300,000 under the previous CBA. Similarly tenured players who have turned 35 or are five years past their last credited season until age 65 are eligible for an annuity payment of $65,000, $80,000 from 2014-17 and $95,000 from 2018-20. All players are automatically enrolled in the 401K program with a club match.
The major new development in this area is the neurocognitive benefit in which those men with mild impairment receive $1,875 monthly for 15 years while those with moderate impairment receive $3,500 monthly. The NFLPA’s 88 plan, named for the Hall of Fame tight end and former union President John Mackey, who died of dementia at 69 in 2011, pays $100,00 to those suffering from dementia, ALS and Parkinson’s who need in-patient care and $88,000 to those who only require out-patient services.
The morning had begun on a lighter note with a presentation on Players Inc., the NFLPA’s marketing and licensing subsidiary, which will celebrate its 20th anniversary next year.
Players Inc. Revenues rose from $110.2 million in 2011 to $123.8 million in 2012. Apparel revenues overall nearly doubled from $11.7 million to $22.6 million. Multi-media revenues were at $25.6 million. NFL Players, Inc. started One Team Shop (www.shop.nflpa.com) in July 2012 to market apparel and memorabilia focused on individual players and is also delving into digital marketing and e-commerce. Players can receive assistance in selling products on their own web sites to raise money for their charities. Each active player receives a royalty payment from group licensing revenues of roughly $10,000 each season.
By David Elfin
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