NFL Changes the way it pays players salaries

[DaBruinz]

I guess this was implemented as part of the new CBA:

 

[DarrylS]

Can they collect for the other 16??

 

[Hammer of Thor]

I guess this was implemented as part of the new CBA:

Is this starting now, or starting later? In other words, are the 2021 salaries being paid starting week 1 and then through May, or do payments start earlier - like June through February?

In the latter case, you might wind up with a lot of guys who don’t make the team getting paid.

 

[jmt57]

Oddly enough it was the players, not the owners that pushed for the change to 36 paychecks.

I assumed it was the owners who wanted it because they could hold onto that money longer, invest it, and make some more cash.

Apparently it is the NFLPA protecting certain players that cannot manage their finances very well from themselves.

The NFL's 17-game season is here: What you need to know, and how the money will work

How will the extra game work? Who plays whom? Who makes money off this deal? We have answers.

www.espn.com

Under the new CBA, players may be paid over a period of 34 weeks for any league year in which the regular season is 16 games or over 36 weeks for any league year in which the regular season is 17 games. This was a change the players pushed for, as it allows them to get paid for a larger chunk of the year than just in-season. Now that it's a 17-game regular season, players will receive 1/36 of their base salary each week over a 36-week span that begins in Week 1 and runs through the 18th week following the end of the regular season.​

Once again, poor negotiating by the NFLPA. This is the type of thing that the players should have offered to the owners as a way for them to make some more money, in exchange for something of value in return. Instead they gave it away for free

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[1960Pats]

Oddly enough it was the players, not the owners that pushed for the change to 36 paychecks.

I assumed it was the owners who wanted it because they could hold onto that money longer, invest it, and make some more cash.

Apparently it is the NFLPA protecting certain players that cannot manage their finances very well from themselves.

The NFL's 17-game season is here: What you need to know, and how the money will work

How will the extra game work? Who plays whom? Who makes money off this deal? We have answers.

www.espn.com

Under the new CBA, players may be paid over a period of 34 weeks for any league year in which the regular season is 16 games or over 36 weeks for any league year in which the regular season is 17 games. This was a change the players pushed for, as it allows them to get paid for a larger chunk of the year than just in-season. Now that it's a 17-game regular season, players will receive 1/36 of their base salary each week over a 36-week span that begins in Week 1 and runs through the 18th week following the end of the regular season.​

Once again, poor negotiating by the NFLPA. This is the type of thing that the players should have offered to the owners as a way for them to make some more money, in exchange for something of value in return. Instead they gave it away for free

​

​

That reminds me of some of the deals that one of our unions made for us in the 70's. One of them was to give up an automatic cost of living raise that we had in our contract that would have jumped up everyone's pay by a substantial amount.

 

[Sicilian]

That reminds me of some of the deals that one of our unions made for us in the 70's. One of them was to give up an automatic cost of living raise that we had in our contract that would have jumped up everyone's pay by a substantial amount.

Do you remember why it was conceded? To add something else they felt was more important? Just curious for curiosity's sake.

 

[fester]

Oddly enough it was the players, not the owners that pushed for the change to 36 paychecks.

I assumed it was the owners who wanted it because they could hold onto that money longer, invest it, and make some more cash.

Apparently it is the NFLPA protecting certain players that cannot manage their finances very well from themselves.

The NFL's 17-game season is here: What you need to know, and how the money will work

How will the extra game work? Who plays whom? Who makes money off this deal? We have answers.

www.espn.com

Under the new CBA, players may be paid over a period of 34 weeks for any league year in which the regular season is 16 games or over 36 weeks for any league year in which the regular season is 17 games. This was a change the players pushed for, as it allows them to get paid for a larger chunk of the year than just in-season. Now that it's a 17-game regular season, players will receive 1/36 of their base salary each week over a 36-week span that begins in Week 1 and runs through the 18th week following the end of the regular season.​

Once again, poor negotiating by the NFLPA. This is the type of thing that the players should have offered to the owners as a way for them to make some more money, in exchange for something of value in return. Instead they gave it away for free

​

​

@jmt57 run the math.

There is a growing literature on the value of deferred payments from the workers' perspective. Most of that work is being down in the Global South with less developed banking industries but the fundamental insight is that Future Me can not trust Present Me to fully think about and consider Future Me's needs as we are barely evolved East African Plains Apes with hyperbolic discounting of the future.

Secondly, given current interest rates and long term interest trends the time value of money for an extra 18 weeks is not particularly large (Say $100 million per team in game salary (all else cap space is signing, performance and roster bonuses etc) so $50 million dollars deferred for an average of 9 weeks at 1.5% annual interest, means each team might pocket an extra $110,000 or just under $2,000 per player (as this applies to the 53 man roster plus practice squad plus anyone on IR) or ~$600 for a player making NFL minimum for the entire season. This is chump change under current interest rates especially if we think that this is a commitment mechanism on the players' part to avoid hyperbolic discounting.

Now if short term rates were 8% or 10% then this might have real value in negotiations but it is effectively arguing over less than 0.1% of salary for someone making NFL minimum. That is like my arguing on whether or not my boss will insert a $20 bill into my jacket pocket once per year.

 

[Spiral]

The players on teams in states with no income tax (TX, TN, FL) will benefit from this. They will have less income subject to state taxation by way of playing away games in those states.

 

[RobertWeathers]

Oddly enough it was the players, not the owners that pushed for the change to 36 paychecks.

I assumed it was the owners who wanted it because they could hold onto that money longer, invest it, and make some more cash.

Apparently it is the NFLPA protecting certain players that cannot manage their finances very well from themselves.

The NFL's 17-game season is here: What you need to know, and how the money will work

How will the extra game work? Who plays whom? Who makes money off this deal? We have answers.

www.espn.com

Under the new CBA, players may be paid over a period of 34 weeks for any league year in which the regular season is 16 games or over 36 weeks for any league year in which the regular season is 17 games. This was a change the players pushed for, as it allows them to get paid for a larger chunk of the year than just in-season. Now that it's a 17-game regular season, players will receive 1/36 of their base salary each week over a 36-week span that begins in Week 1 and runs through the 18th week following the end of the regular season.​

Once again, poor negotiating by the NFLPA. This is the type of thing that the players should have offered to the owners as a way for them to make some more money, in exchange for something of value in return. Instead they gave it away for free

​

​

No kidding.

Any fiscally-responsible person with 1/2 a brain will ALWAYS take the cash ASAP.

 

[mgcolby]

Oddly enough it was the players, not the owners that pushed for the change to 36 paychecks.

I assumed it was the owners who wanted it because they could hold onto that money longer, invest it, and make some more cash.

Apparently it is the NFLPA protecting certain players that cannot manage their finances very well from themselves.

The NFL's 17-game season is here: What you need to know, and how the money will work

How will the extra game work? Who plays whom? Who makes money off this deal? We have answers.

www.espn.com

Under the new CBA, players may be paid over a period of 34 weeks for any league year in which the regular season is 16 games or over 36 weeks for any league year in which the regular season is 17 games. This was a change the players pushed for, as it allows them to get paid for a larger chunk of the year than just in-season. Now that it's a 17-game regular season, players will receive 1/36 of their base salary each week over a 36-week span that begins in Week 1 and runs through the 18th week following the end of the regular season.​

Once again, poor negotiating by the NFLPA. This is the type of thing that the players should have offered to the owners as a way for them to make some more money, in exchange for something of value in return. Instead they gave it away for free

​

​

I think that is the primary reason but it also helps players that play in low or no income tax states save some tax dollars when they play in high tax states. Smaller paycheck that week smaller taxes for that state. Good looking out all the way around.

 

[jmt57]

@jmt57 run the math.

There is a growing literature on the value of deferred payments from the workers' perspective. Most of that work is being down in the Global South with less developed banking industries but the fundamental insight is that Future Me can not trust Present Me to fully think about and consider Future Me's needs as we are barely evolved East African Plains Apes with hyperbolic discounting of the future.

Secondly, given current interest rates and long term interest trends the time value of money for an extra 18 weeks is not particularly large (Say $100 million per team in game salary (all else cap space is signing, performance and roster bonuses etc) so $50 million dollars deferred for an average of 9 weeks at 1.5% annual interest, means each team might pocket an extra $110,000 or just under $2,000 per player (as this applies to the 53 man roster plus practice squad plus anyone on IR) or ~$600 for a player making NFL minimum for the entire season. This is chump change under current interest rates especially if we think that this is a commitment mechanism on the players' part to avoid hyperbolic discounting.

Now if short term rates were 8% or 10% then this might have real value in negotiations but it is effectively arguing over less than 0.1% of salary for someone making NFL minimum. That is like my arguing on whether or not my boss will insert a $20 bill into my jacket pocket once per year.

I hear what you are saying, but investing in 1.5% interest rate is foolish.

Is that all your 401k is making?

These are professional business people who know how to make much more than 1.5% with OPM.

 

[PatsWSB47]

No kidding.

Any fiscally-responsible person with 1/2 a brain will ALWAYS take the cash ASAP.

A good number of NFL players only have half a brain

 

[fester]

I hear what you are saying, but investing in 1.5% interest rate is foolish.

Is that all your 401k is making?

These are professional business people who know how to make much more than 1.5% with OPM.

Given that is the risk free rate of return, I think that is a defensible rate to use for this calculation.

 

[Pape]

Oddly enough it was the players, not the owners that pushed for the change to 36 paychecks.

I assumed it was the owners who wanted it because they could hold onto that money longer, invest it, and make some more cash.

Apparently it is the NFLPA protecting certain players that cannot manage their finances very well from themselves.

The NFL's 17-game season is here: What you need to know, and how the money will work

How will the extra game work? Who plays whom? Who makes money off this deal? We have answers.

www.espn.com

Under the new CBA, players may be paid over a period of 34 weeks for any league year in which the regular season is 16 games or over 36 weeks for any league year in which the regular season is 17 games. This was a change the players pushed for, as it allows them to get paid for a larger chunk of the year than just in-season. Now that it's a 17-game regular season, players will receive 1/36 of their base salary each week over a 36-week span that begins in Week 1 and runs through the 18th week following the end of the regular season.​

Once again, poor negotiating by the NFLPA. This is the type of thing that the players should have offered to the owners as a way for them to make some more money, in exchange for something of value in return. Instead they gave it away for free

​

​

are they protecting players who can't manage finances or are they getting money into the hands of non established players sooner? the players get paychecks earlier in the year than they normally would...

to a guy like Gilmore, for example, i doubt it matters much... but for for a first year player, some like Terez Hall for example, i would imagine that this helps by getting money into his pockets sooner rather than later

 

[Sfpat]

When do the payments begin? I'd assume one has to first make the team before payments begin. Not sure this gets money into their pockets any sooner.

Edit: Just read that payments start the 1st week of the season and continues for 18 weeks after conclusion.

 

[jmt57]

are they protecting players who can't manage finances or are they getting money into the hands of non established players sooner? the players get paychecks earlier in the year than they normally would...

to a guy like Gilmore, for example, i doubt it matters much... but for for a first year player, some like Terez Hall for example, i would imagine that this helps by getting money into his pockets sooner rather than later

The full amount does not get paid until later.

Instead of the contract being divided into 17 weekly paychecks starting in early September, it is now being divided into 36 weekly paychecks (again beginning in early September, week one). For example under the old plan the first check would be paid Sept 13, the last on Jan 3. In the new plan the players get half the amount, from Sept 13 to May 16.

I'm not sure if this applies to Practice Squad players too, though I would assume it does. Last year their standard rate of pay was $8400 per week for 17 weeks (veterans with 2-plus years experience made $12k per week). There is also nominal amount for OTAs ($235 per workout), and rookies are paid $1,150 per week in training camp (about $1900 for veterans) to cover expenses.

 

[1960Pats]

Do you remember why it was conceded? To add something else they felt was more important? Just curious for curiosity's sake.

They added an automatic 4 year progression to the top pay grade which only really helped 4 members in our department. Ironically I was one of those and was criticized for it. The cost of leaving soon skyrocketed and every member, not just in our department, would have made a major killing and the company would have had to give up something to get it taken out.

 

[chris_in_sunnyvale]

I think that is the primary reason but it also helps players that play in low or no income tax states save some tax dollars when they play in high tax states. Smaller paycheck that week smaller taxes for that state. Good looking out all the way around.

Is that how it works? If one paycheck representing a week's worth of labor in a high tax state becomes two halved amounts, aren't both paychecks still taxable by that state? Effectively the 2nd paycheck is a deferred payment for labor in that state. I don't think you can avoid taxes simply by deferring payment.

Regards,
Chris

 

[mgcolby]

I am not 100 percent. I guess that is one way to look at it and given the government that probably will be how they see it. But if the NFL makes the pay structure different i.e. no longer linked to each gameday then it may help the players.

Either way you brought up a good point and a perspective that I overlooked and did not consider.

 

[ctpatsfan77]

Oddly enough it was the players, not the owners that pushed for the change to 36 paychecks.

I assumed it was the owners who wanted it because they could hold onto that money longer, invest it, and make some more cash.

Apparently it is the NFLPA protecting certain players that cannot manage their finances very well from themselves.

The NFL's 17-game season is here: What you need to know, and how the money will work

How will the extra game work? Who plays whom? Who makes money off this deal? We have answers.

www.espn.com

Under the new CBA, players may be paid over a period of 34 weeks for any league year in which the regular season is 16 games or over 36 weeks for any league year in which the regular season is 17 games. This was a change the players pushed for, as it allows them to get paid for a larger chunk of the year than just in-season. Now that it's a 17-game regular season, players will receive 1/36 of their base salary each week over a 36-week span that begins in Week 1 and runs through the 18th week following the end of the regular season.​

Once again, poor negotiating by the NFLPA. This is the type of thing that the players should have offered to the owners as a way for them to make some more money, in exchange for something of value in return. Instead they gave it away for free

How do you know they didn't?