The reason Dak Prescott wants a shorter deal and why the Dallas Cowboys want a longer deal, is because the new TV deals in 2022 are going to make salary cap explode to new heights.
The Dallas Cowboys and Dak Prescott are in a stare-down over the new contract offers. Dak and his team are looking for a shorter term deal, while the Cowboys are looking for a longer term deal that will save them money in the long run. The argument looks counteractive at first but the upcoming expiration and renegotiation (more on that in a minute) of the television deals are expected to raise revenue, the salary cap, and player’s salaries.
Big deals today are going to look small tomorrow. That’s why the Dallas Cowboys want Dak locked up long-term and why Dak wants to be locked up short-term. They want him on a below market deal down the road and Dak wants to stay currently aligned with market prices.
Earlier this year the players accepted a new CBA in time to start new league year relatively on time. A part of that deal was there would be increased television revenue to the players, which is great. However, because the NFL approved more playoff teams, and an extra regular season game, that means more games on television. The old television deal was designed around the 16 game season and 12 playoff teams. Adding games means having to renegotiate those contracts.
In the NFL, television revenue makes up about 2/3 of the salary cap. That means a new deal is going to give a massive boost, massive is an understatement, maybe prodigious or gargantuan is a better word. Either way the new deal will mean a lot of new money. That new money will mean a salary cap that is expected to explode in the coming years.
If Dak Prescott takes a five or six year deal, that means as the cap increases in year two or three, he won’t be able to get money others will be getting, it is all about timing. Negotiating a four year deal is best for Prescott, love it or hate it, football is a business and these are business decisions. A $37M per year deal will be peanuts in 2023.
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Beyond just the television deal is the physical toll. These players put their bodies on the line for the sport and their teams. Essentially after the first year, Dak will be playing 17 games for the price of 16. This doesn’t even include the playoff expansion. Again, a business decision and timing.
In 2011 the television deal was $27 billion. The next projected television deal should be somewhere between $40-$42 billion. This is based on the percentage increase between the last two deals. This money will be used to boost the salary cap to limits we have not seen. Think about what happened the last time the NBA re-negotiated their deal, salaries almost doubled.
So while everyone argues whether Dak is worth X amount, it goes far deeper than that. Players will be eyeing the new TV deals (or at least they should be). The new deal means more money, more money means bigger contracts. In a few short years $37 million will look cheap compared to what is about to come
Dak Prescott is making a smart business move and the Dallas Cowboys are playing the game too. It will happen, but for now we wait to see where the two sides meet.
- Published on 05/12/2020 at 12:30 PM
- Last updated at 05/12/2020 at 12:09 PM