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Tuesday, Sept. 19, 2000

Capped out? Don't worry

Salary cap won’t stop some teams from trying to buy a championship

By Neil Warner, Executive editor of new media

Hardly an issue of Pro Football Weekly goes to press without the mention of the term "salary cap" somewhere in its pages.

It wasn’t always this way. Not that long ago, the salary cap was a concept reserved for the National Basketball Association.

Then the NFL decided to adopt the concept for its own use.

In theory, the NFL’s salary cap was intended to establish a ceiling for how much a team could spend on its players. Because the owners had finally granted the players true free agency, they wanted a cap to protect themselves from each other as a result of the bidding wars for players that they feared would follow.

Conversely — and almost forgotten now — is that when it was implemented with a new Collective Bargaining Agreement, it also established a minimum amount that a club had to spend on its players. At that time, there were a number of teams that were considerably below the newly established minimum.

Another objective of the salary cap was to maintain a level playing field for all clubs, whether in large markets or small. Because the NFL had long ago embraced revenue sharing for that purpose, the establishment of a salary cap would, in theory, prevent the franchises in the large markets from outspending the small-market teams.

In practice, of course, the salary cap has been shot full of holes, almost as many holes as the NBA’s cap.

From the players’ perspective, it has produced a system in which the stars receive an even more disproportionate share of the pie than ever, whereas the above-average veterans who have gradually worked their way into the middle of the salary range are sacrificed in favor of cheaper, marginal players. It’s survival of the fittest, but often even those who deserve to survive don’t.

From the standpoint of establishing a level playing field, that’s a joke too. As publisher/editor Hub Arkush aptly points out in his "Publisher’s Pen" in the current print edition of Pro Football Weekly, the amount of money each club spends on player salaries bears little resemblance to the salary cap. In fact, 17 of the 31 NFL teams will surpass the $62.7 million estimated cap in 2000, according to salary information compiled by Street & Smith’s Sports Business. Five teams — Washington, Baltimore, St. Louis, Jacksonville and Chicago — will exceed the cap by at least $10 million. The Redskins, with a payroll of $88.46 million this year, are more than $25 million over the cap.

At the other end of the spectrum is Arizona, some $37 million under Washington’s payroll.

Level playing field? Hah.

The reason for the huge disparity is that the figures mentioned above are the amounts actually paid out to players in 2000. In calculating the salary cap, on the other hand, signing bonuses are prorated. A $4 million signing bonus tied to a four-year contract counts only $1 million toward the cap in each of the four years, even though the entire bonus is actually paid out at the beginning of the contract. So, a team like Washington can dole out huge signing bonuses this year without putting itself over the cap.

Of course, these huge bonuses will eventually come to roost, as they did for the 49ers. But perhaps a Super Bowl title is worth that price.

Glenn Dickey points out in his current column on ProFootballWeekly.com that Browns president Carmen Policy has reportedly been accused of violating the salary cap while he was president of the 49ers. Yet, Dickey asks, are there any NFL teams that haven’t been guilty of a similar violation?

I can’t answer that question authoritatively, but I suspect Dickey’s implication is correct. I do know that the NFL could have come up with a better system than the one they have now. Clubs have learned how to circumvent the intent of the salary cap, making it a farce.

As Arkush points out, teams such as the Redskins and the Ravens can spend way above the cap because they have such lucrative stadium deals, and stadium revenue is not shared with other clubs. Teams with unfavorable stadium leases, meanwhile, try to get the most out of what they have to work with — and hope for the best.

It’s no wonder that despite the salary cap, the rich continue to get richer.

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