New Thurs Night TV Should Increase Cap in 2015
More cap money room is always good news for the Steelers, even if it is in the future. I would still prefer to see them avoid pushing too much money down the road, but more cap room in the future is never a bad thing. Of course, salaries will be inflated a bit league-wide as a result, but I still think the increased room will help the Steelers.
New TV package will result in more cap dollars in 2015
Posted by Mike Florio on February 5, 2014, 2:05 PM EST
Getty ImagesFor years, we’ve been saying that the NFLPA should be insisting on the sale of the Thursday Night Football package to the highest bidder. After years of hoarding the games in the hopes of propping up an in-house network that never has performed at the level the NFL hoped, the league finally has decided to export a chunk of the previously exclusive games.
The good news for the players and the teams is that, by moving eight of the games to CBS, a lot more money will flow through the cash register.
The initial bids reportedly fell in the high $200 million range. If CBS ultimately paid $300 million for the package, that money will dump directly into the bucket from which the salary cap is calculated.
Offsetting that amount will be the lost advertising revenue for NFL Network, given that the games will be shown both on NFLN and CBS. Few companies will spend as much to roll commercials during breaks of games that no longer are exclusive to the league-owned broadcast operation.
Still, even if the net gain is a mere $250 million, that translates to $7.8 million per team in salary cap space.
That bump won’t happen in 2014. Each year’s cap comes from the prior year’s revenue. So the found money coming from the new CBS deal will find its way into the spending budget for all teams comes 2015.