The massive deal between the NFL and ESPN regarding various NFL Media assets raises a wide range of questions. For NFL players, it raises one very important one.
What’s in it for us?
The league reportedly will get equity in the deal, receiving up to 10 percent of ESPN. How will that translate into payment for players?
Long-time agent Peter Schaffer flagged the issue, in a Saturday text message to PFT. “Agents and players see major revenue potential in the ESPN–NFL deal, but there’s real concern the league structured it to conceal money from the player pool,” as it relates to, for example, the “value of game packages.”
Among other things, ESPN will get access to the seven regular-season games that the NFL had retained and televised via NFL Network. With the league reportedly getting ESPN ownership in lieu of cash, what does that mean for the broader revenue split?
The players currently receive roughly half of the cash that flows through the overall cash register. With the league getting paper ownership and not paper money from the ESPN deal, what will the players receive via a potential bump to their collective pay?
“This could artificially depress the salary cap, directly cutting into player contracts and earnings,” Schaffer said. “The NFLPA needs to stay on top of this and demand full transparency.”
Because the deal has yet to be finalized, it’s premature for the union to do anything. When the deal is done, the union will have the right to fully explore the details of the arrangement and, if necessary, to challenge it.
Of course, the first order of business for the NFLPA is to appoint a new leader. And the new leader will have plenty of work to do. The ESPN-NFL deal adds another important item to the list: Figuring out how the players will get their fair share of whatever tangible benefits the NFL will receive through its unprecedented partnership with a media conglomerate.
