Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

NFL Fears More Holdouts on the Way as Salary Cap Rises

Author: Scarinci Hollenbeck, LLC

Date: September 29, 2015

Key Contacts

Back

Salary cap rise causing unrest

NFL executives are reportedly worried that players who negotiated their contracts during the salary cap’s slow annual rise from 2011 to 2013 will soon feel their teams owe them larger contracts, due to the fact that the threshold has been surging the last two years.

With the holdout of the Seattle Seahawks’ Kam Chancellor heading into the third week of the NFL season, it is certainly possible that some players are already considering their plans for next season.

Many players could soon decide they deserve larger contracts 

A player’s value is often directly linked to the salary cap, meaning that those individuals who composed large percentages of their teams’ caps from 2011 to 2013 are currently, or will soon, make up much smaller portions of those caps. With their values, in respect to the salary cap, diminishing substantially by the year, these individuals will likely want to renegotiate in an effort to earn the larger salaries now available to them. This is why, as NBC Pro Football Talk’s Mike Florio reported, NFL executives are concerned about the prospects of their stars holding out for bigger contracts in the coming years.

The salary cap has shot up by $10 million each of the last two years, and with the larger chunk of change available to split, some players are all but certain to decide that they deserve bigger shares. Chancellor’s holdout – the strong safety received a contract extension in 2013 – could play an important role in players’ thinking in the coming seasons, according to Florio’s report.

He explained that the NFL may press the Seahawks to hold their ground in the standoff with Chancellor. If the team gives in and offers him a new, larger contract, other players in the league may get the idea that their own holdout attempts can be similarly successful if they are willing to stretch them deep enough into the season.

Negotiating a contract that rises with the cap

One possible solution according to Florio, is to begin negotiating contracts that are flexible and anticipate how the salary cap will rise. Through key pieces such as bonuses, agents and players can ensure that contracts remain at a set percent of the cap each year, even as it grows.

If you feel your contract makes up a relatively small portion of your team’s salary cap, and think the time to renegotiate is coming, speak with an agent who knows sports law to help you determine a way to develop an agreement that pays you what you’re worth.

    No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

    Scarinci Hollenbeck, LLC, LLC

    Related Posts

    See all
    How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide post image

    How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide

    Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]

    Author: Christopher D. Warren

    Link to post with title - "How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide"
    Gross Lease vs. Net Lease: Understanding the Key Differences post image

    Gross Lease vs. Net Lease: Understanding the Key Differences

    Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]

    Author: Robert L. Baker, Jr.

    Link to post with title - "Gross Lease vs. Net Lease: Understanding the Key Differences"
    What to Do If You Are Impacted by a Retailer Bankruptcy Part 2 post image

    What to Do If You Are Impacted by a Retailer Bankruptcy Part 2

    Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]

    Author: Brian D. Spector

    Link to post with title - "What to Do If You Are Impacted by a Retailer Bankruptcy Part 2"
    The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business post image

    The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business

    Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]

    Author: Dan Brecher

    Link to post with title - "The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business"
    Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1 post image

    Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1

    The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]

    Author: Brian D. Spector

    Link to post with title - "Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1"

    No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

    Sign up to get the latest from our attorneys!

    Explore What Matters Most to You.

    Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

    Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

    Let`s get in touch!

    * The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

    Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!

    Please select a category(s) below: