New deal will have impact on Steelers in 2020, beyond
The NFL will have labor peace through the 2030 season after a majority of the members in the NFL Players Association voted to accept the collective bargaining agreement the league’s 32 owners agreed upon a month ago.
Under the terms of the new CBA, the NFL will go to a 17-game regular-season schedule with expanded playoffs that will include seven teams from each conference. The increase in revenue from television contracts and other revenue streams ensured the players receive 48% of the league’s revenue in 2021 with the possibility of reaching 48.5% if TV contracts are maximized. That means an increase of an estimated $5 billion will be paid to players over a 10-year period.
Minimum salaries will increase by $100,000 this year and other incentive-based pay will be implemented. Retired players also will see increases in their pensions, although many members of the NFLPA were divided on the proposal because some in the union did not believe enough was being done for retirees.
Despite COVID-19 forcing postponements and delays in other sports leagues the NFL, for now, plans to keep its schedule in place for this week. The franchise tag deadline is 11:59 a.m. Monday. The legal tampering period begins one minute later at noon. And the new league year begins Wednesday, which coincides with the
start of free agency.
The new CBA will have a big impact on the Steelers and how they approach the 2020 season and beyond. Here are some pertinent questions and answers:
• How does it impact the use of the franchise or transition tag on Bud Dupree?
It will be much easier to find the money to pay Dupree, who is expected to get $16 million or more if he is designated the franchise player. The Steelers, who are currently $2 million over the cap according to overthecap.com, must be compliant with the cap on the first day of the new league year. So where do they find the money to pay Dupree? With the CBA signed, sealed and delivered, they now are free to rip up an existing contract for a player they would like to re-sign and reduce the salary cap hit for the 2020 season. For example, defensive end Cam Heyward currently is scheduled to count $13.25 million against the cap in the final year of his contract. The Steelers can sign him to a new contract and significantly reduce the cap hit for 2020 by paying him a lower salary in 2020 and spreading out his signing bonus over the length of the new deal. The Steelers then could find the rest of the money by releasing outside linebacker Anthony Chickillo ($5 million in savings) and offensive lineman Ramon Foster ($4 million in savings) and perhaps one or two others.
• Does it impact how the Steelers approach free agency?
Not really. The NFL has set the salary cap at $198.2 million for the 2020 season. That means the Steelers won’t have much cap space to sign free agents unless they make additional costcutting moves by releasing more veterans or restructuring more veteran contracts. It could be a relatively quiet year for the Steelers after they spent big in free agency last year, when they acquired cornerback Steven Nelson, linebacker Mark Barron and receiver Donte Moncrief. If the Steelers do want to dabble in free agency, they could ask veterans to accept a reduced salary. One candidate is tight end Vance McDonald, who is set to count $7.2 million against the cap in 2020. The Steelers could ask him to play for less. If he balks and is released, the Steelers would save $5.6 million on their cap. They would be forced to sign or draft a tight end to replace McDonald, but it is an option if they’re intent on being active in free agency. And don’t forget the Steelers have to make decisions on three restricted free agents that had major roles in 2019. Cornerback Mike Hilton, right tackle Matt Feiler and backup tackle Zach Banner are restricted free agents. The new CBA should help the Steelers retain them if they want to keep them. There is a $100,000 increase for right of first refusal on original round tenders and a $250,000 increase for first- and second-round tenders for
restricted free agents. So if the Steelers elect to place second-round tenders on Hilton and Feiler, it will cost them about $3.4 million for each.
• How does it impact contract negotiations for young star players?
This is where the new CBA could be beneficial for the Steelers, who are perennially up against the cap. With the addition of a 17th game and two additional playoff games, the league is expected to sign lucrative contracts with its television partners. Some estimates have the cap reaching $240 million in 2021 with expected incremental increases thereafter. With outside linebacker T.J. Watt expected to command in the neighborhood of $20 million a year on his next contract, the Steelers are going to need a bigger cap number to pay him and some of their other young stars. Even if the Steelers wanted to wait and pick up the fifth-year option on Watt, they would be on the hook for big money if they can’t get a deal done next year at this time. Under the terms of the new CBA, the fourth and fifth years of rookie contracts are guaranteed when the fifth-year option is exercised. In addition, players will be paid on achievement rather than draft slot. So Watt, who was the No. 30 overall pick in the first round of the 2017 draft, will be paid more than most other first-round picks from the 2017 class because of the All-Pro and Pro Bowl recognitions on his resume. Receiver JuJu Smith-Schuster, another member of the 2017 draft class, can become an unrestricted free agent after the 2020 season ends. Safety Minkah Fitzpatrick, who is entering his third season, will command top dollar as well when it’s time for him to sign a second contract. That’s OK because by then, Ben Roethlisberger’s $30plus million cap hits will be off the books.
• How will it affect the Steelers roster in 2020?
Each team will get two more roster spots. So now each team will have a 55-man roster. There will be additional spots on the practice squad, too. The added spots will give general manager Kevin Colbert and his coaches more flexibility throughout the season. It might be a return specialist, a skilled pass rusher for third downs, or something more practical like a backup fullback (the Steelers didn’t have one last year and suffered as a result). It also will mean being able to keep talented players when injuries arise. Last season, the Steelers lost two offensive linemen from their active roster when they had injuries at other positions — Fred Johnson to the Bengals and Patrick Morris to the Broncos. Both would have been in position to see their roles increase in 2020 if they stayed with the Steelers. The added practice squad positions will allow some talented but not-quite-ready players to be stashed for when they’re needed.