What does the new CBA mean for the LA Rams in 2020?
By Bret Stuter
More games = higher salary cap
The new collective bargaining agreement will distribute a larger share of the NFL’s total revenue with players. The former agreement capped revenue sharing at 46 percent, but the new agreement raises that to 47 percent in 2020, and up even further to 48 percent in 2021. Should the league adopt a 17 game season, that number will increase to 48.5 percent share of the league’s revenue.
What can that mean for the LA Rams? Simply stated, salary cap relief, of sorts. Some estimates project the 2021 NFL salary cap at or about $240 million. While that is not a certainty, it is the best guesstimate of the new NFL television contracts combined with more regular-season games plus more playoff games. And it’s not a quick-fix to the Rams salary cap challenges, as the 2021 salary cap increase appears to have been factored into the LA Rams contracts already.
Part of the salary cap increase will have a serious impact on the LA Rams. Minimum salaries will increase rapidly. 36 of the current 60 players on the Rams roster are earning less than $1 million this year. These players will see their salary increase rapidly each year over the next ten years to be well over the $1 million thresholds.
One lesser-known fact is the “Veterans Salary Benefit” which will allow a team to re-sign up to two of their veteran (up to four years of service) players per year and exclude up to $1.25 million of the player’s base salary from the salary cap calculation. So for the LA Rams using 2019 as an example, the team would have been able to exclude $1.25 million by signing Austin Blythe to a one-year deal. If the team elects to do so, that $1.25 million can be split between two players. The VSB increases slightly each year.
The actual agreement is over 456 pages, and is written in “Legalize” language., so it will take some time to read, digest, and highlight important features of the new agreement. But these cover some of the more immediate and significant changes to the NFL, and the LA Rams, in the weeks ahead.