With what is arguably the best revenue sharing plan in professional sports, the NFL owners are currently scrambling to argue over what they share with the players. For some reason, the owners want to restrict the amount of money the players can receive in revenue from the game. The game they play.There is a funny acronym at play here called DGR. Any idea what it means? Neither did I. DGR stands for Designated Gross Revenue and it is the total of ticket sales, merchandise sales and broadcasts. It’s a very juicy pot for the NFL.
Where it gets tricky is the percentages afforded to the players. At first glance it might appear the players are getting the better deal as their percentage has risen year over year. Where the DGR comes into play is in setting the salary cap, ergo, the amount of money that is paid to players. The minimum amount of money that can be paid players is 56%.
- 1998-2001 – 63%
- 2002 – 64% (increase 1%)
- 2003 – 64.25 (increase .25%)
- 2004 – 64.75 (increase .5%)
- 2005 – 65.5% (increase .75%)
- 2006 – 64.5% (DECREASE 1%)
- 2007 – Uncapped year.
So what we have now is a stand off between the owner’s and the players. No one wants 2007 to be an uncapped year as you would have teams like Dallas running out to sign everyone to long term and very expensive contracts.
The NFL owner’s are offering 57%. Yes, 57%, which would be a decrease of 7.5%. The players want an increase of .5% to 65%.
The NFL owner’s claim that the pot is larger so that the lower percentage wouldn’t affect the amount offered. Nice logic, eh?
The golden goose may go on life support.