Sunday, March 15, 2020

NFL Players Approve New Labor Agreement


By a margin of only 60 votes, NFL players have approved the new Collective Bargaining Agreement by a 1,019 to 959 majority vote that concluded at 11:59 p.m. E.T. Saturday. The agreement will begin with the upcoming 2020 season and extend through the 2030 campaign. This means that we won’t have a year of dreading a lockout or strike in 2021 as we did prior to the previous CBA.

Ratification required a simple majority and there could be lasting resentment among union members, given how close the vote was. With nearly 2,500 NFL players, around 500 NFL players did not vote

The following is a summary of the key terms from the approved CBA:

(The full CBA document can be downloaded and read here.)

WAGES / ECONOMICS

• 47% of annual revenue in 2020, plus around $100M in new Player Costs above current CBA for 2020 
• Guaranteed 48% share of revenue in 2021, with ability to increase the percentage to 48.5% share through a media kicker which applies in any season the league plays 17 games 
• Projected increase of around $5 billion to players during course of a new 10-year deal

MINIMUM SALARIES

 $100K increase in 2020 for Rookie Minimums, another $50K increase in 2021 and then $45K increase each year after 
 At least $90K increase in 2020 for other minimum salaried players; $80K to $105K increase in 2021 and then $45K increase each year after 
 Right to use Rookie Distribution pool to provide additional payments to players at minimum salaries to keep minimum salaries in-line with cap growth
 Increase in minimum salary benefit 
 Creation of new four-year player benefit: up to an additional $1.25M in salary excluded from the cap for up to two players 
 Bonus payment of 1/17 of his paragraph 5 salary up to $250K to any player whose contract runs through a season when 17 games is played
 Additional cap room per club in 2021 if 17 games is implemented and media kicker does not reach 48.5% 
 Performance-based Pay increased to $8.5M in 2020 and $10M in 2021, with annual increases thereafter 
 Increase average Minimum Team Cash Spending to 90% over tranches of 3-3-4 year periods 
 $100K increase for ROFR Original Round Tender; $250K increase for first- and second-round Tenders for Restricted Free Agents 
 Raises for Practice Squad Players to $10.5K per week; total number of 12 players increasing to 14 players, with two unlimited Accrued Seasons players 
 Guaranteed Funding Rule increase to $15M per club in 2020 and to $17M in 2029 
 Fifth-year Options fully guaranteed for fourth and fifth years at the time option is exercised; Amount of Option dependent on player achievement and no longer based on which slot selected in first round 
 Increase in pay for all offseason activities 
 Proven Performance Escalators for second-round picks; Super Escalator for rounds 2-7 in fourth year
 Gambling definitions that ensures money is included in players' definition of All Revenue, including portions of non-football activities

TRAINING CAMP HOURS

 Introduction of five-day acclimation period 
 2.5-hour limit on padded and full speed practices 
 Limit time at facility during a given work day 
 Limit of 16 days in pads 
 No more than three consecutive days for three out of the five weeks 
- No more than two consecutive days for two out of five weeks 
 Three-day weekend at end of camp if 17 games is implemented 
 Two days off in the first week, one day every seven thereafter 
 Limit of four Joint Practices if three preseason games

IMPROVEMENTS TO WORKING CONDITIONS

 Mandated improvements to visiting team locker rooms 
 Establish standards for rehabilitation facilities, training rooms and equipment for each club 
 Active squad increased by one offensive lineman 
 Development of improved safety metrics for fields

BENEFIT INCREASES

Active Players:
 Pension increase of 10% 
 401K matching contribution increased to $30K, annual increases thereafter 
 Annuity increased to $110K per year; increasing by $15K every other year 
 Tuition reimbursement: increases for active and former players 
 Life Insurance 
 HRA increased to $35K with increases thereafter of to $50K per season, with overall limit increasing from $350K to $450K 
 Adding vision coverage to healthcare plan 
 Injury Protection of 100% of salary up to $2.0M and Extended Injury Protection of 100% of salary up to $1.0M 
 Termination Pay: Increase in mid-season signing benefit to 35% of remaining salary or two weeks salary at the applicable minimum salary amount; right to collect a second time in some instances 
 Practice Squad players eligible for $5K of tuition benefits/year and 401K with $1500 match

Former Players:
 Retroactive increase to $550 per month for all pre-2012 vested players
 Expand pension eligibility to all former players with three credited seasons 
 Establish a $50,000 HRA for vested veterans with no HRA 
 Creation of new network of hospitals in each team city for former players to receive no cost physicals, preventative care, mental health counseling, and out-patient orthopedic services. Coverage of common surgeries to be phased in during course of deal.

Rights:
 Clear parameters for ownership and usage of player data from sensors 
 Overall reduction in on-field fines 
 Reduction in club fines 
 Implementation of a neutral decision-maker for most Commissioner Discipline cases
 Right to be paid over a 34-week pay period vs. 17 weeks 
 New workers comp process to enable easier filing for players, making injury care more accessible.

Changes to Drug Policy:
 Narrows the testing window of THC from four months to two weeks at the start of training camp 
 Reduces the penalties to players who test positive for THC, eliminating any game suspensions strictly for positive tests 
 Reduces the number of players subjected to testing for THC 
 Increases the nanogram limit from 35 to 150