NFL Draft
Matt Ottman
Mr. Reuter
Economics
5 May 2014
NFL Draft
One of the most overhyped events of the football year where not a single player is playing on the football field, but instead there are cameras everywhere in Music City Hall in downtown New York City, a paparazzi like environment, as former college football players wait to hear their name called on draft day. The NFL draft will be taking place for three days, May 8-10. The NFL has decided to try and make even more profit than before with the draft now. Before, they would hold the draft over two days in mid-April, usually on a Saturday and Sunday. The draft was moved back to give it even more hype, and last over three days, instead of the weekend. The change happened during the 2011 NFL draft. This draft will be one of the most hyped of all time, and the NFL is expected to make a lot of mula because of it. It does not just affect the league itself, but the players too. Before the NFL changed its draft date to early May, the players were given larger contracts. This was because of the new CBA contract that was signed with the league and the players’ association. If it affects the players, than it certainly has an effect on whichever team drafts the players, because of the rookie salaries that they are allowed to give. These are some of the most stressful days for the teams and the players, but never really for the league, itself.
The NFL holds the draft once a year, and waits about three months after their season is over to hold their draft. This is not like the NBA, one of the top major sports’ leagues in the world, who hold their draft just a couple weeks after their season is over. The NFL milks time off of the clock so that when the much anticipated night comes for the draft, more and more people will tune in to watch the event. This increases ratings, which equals money for the league. ESPN and NFL Network both have production crews at the event, and are able to make money off of them for letting them broadcast at Music City Hall. It is all because of the anticipation of the months waning on the draft. It is really a lot for seeing who our favorite team could draft, considering that there is no guarantee that any of the players can even make a contribution right away.
There is a significant difference between how much NFL rookies can make now. “The 2011 Collective Bargaining Agreement (CBA) changed the way rookies are compensated, especially at the top of the NFL Draft, by implementing a rookie wage scale. Cam Newton signed a fully guaranteed four-year, $22,025,498 deal, including a $14,518,544 signing bonus, as 2011's top pick. Previously, 2010 first overall pick Sam Bradford signed a six-year contract with a base value of $78 million with $50 million in guarantees. His deal is worth a maximum of $86 million through base salary escalators and incentives,” (Agent’s). To put this into perspective, Seattle Seahawk QB, Russell Wilson, who had just won a Super Bowl this past season, will make a base salary of $662,434 next season (Russell). Wilson is one of the most promising QB’s in the league and he will be the lowest paid QB on the Seahawks. The players are not guaranteed the money they used to have, and will have to play to earn their next big contract, instead of having a life’s amount of money before the new CBA deal.
The position a team has in the draft can also affect the salary cap hit that they have. “There is a considerable difference in the cost of the draft for a team at the top of the draft order as compared to a team at the bottom of the order, with the first round selection accounting for about 85% of the difference,” (Money). Teams also deal with having multiple compensation picks, which occur at the end of every round, with not having the team’s record having a role in when the compensation picks take place, and they are not allowed to trade that pick either. Teams that have a higher draft pick, tend to have more salary cap hits because of how talented and high the player is drafted.
The NFL is one of the more highly hyped events, but there is a lot of money that is dealt with, including with the league, the players, and the teams. The minutes are counting down to every draft pick, and money will be thrown around every which way on draft day.
Sources:
- "Agent's Take: The hidden economics lurking within the 2014 NFL Draft." CBSSports.com. N.p., n.d. Web. 6 May 2014. <http://www.cbssports.com/nfl/eye-on-football/24546593/agents-take-the-2011-cba-and-hidden-economics-of-nfl-draft>.
- "Money and the NFL draft." National Football Post. N.p., n.d. Web. 6 May 2014. <http://www.nationalfootballpost.com/Money-and-the-NFL-draft.html>.
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