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A Jordan Love Contract
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<blockquote data-quote="Firethorn1001" data-source="post: 1036683" data-attributes="member: 11511"><p>This is my high level notes on it. There are a bunch of articles out there explaining what is going on in much more detail and explain it better than I can. (I still can't wrap my head around how you can win a $14B lawsuit for something that is essentially a voluntary purchase.... truly 1st world problems but that's for another discussion)</p><p></p><p>Short version. The fine is in relation to the Sunday Ticket Package and the NFL being sued for violating Anti-trust law for it. The award was some 4.7B, but then tripled under anti trust law to make it a little over $14B.</p><p></p><p>Obviously the NFL is appealing that, but typically in order to appeal you need to front the money so it's put aside just in case an entity would go bankrupt fighting it. In that case, the NFL could be pushed to front $14B right away (some $440M per team). There is a judge reviewing right now. That judge could make a bunch of different rulings. Could agree with the NFL that the amount requested for appeal is a significant financial issue for them and reduce the amount required on bond, could force the NFL to post the amount for the appeal, could throw out the case entirely or reduce it to some other amount. I think the post verdict ruling is July 31st.</p><p></p><p>Worst case the NFL loses the case in the end and had has to pay out $14B or even needs to put up the full amount towards an appeal bond. Many owners don't have $440M laying around just to pay fines or put in essentially escrow immediately so, it would be an issue for a segment of the league. For the Packers, they have close to $600M in reserves so they have the ability to do it, but how much would they need to dip into that money for this (they could take out loans) impacts what they have laying around for contract signing bonuses.</p><p></p><p>If the fine is paid out it almost certainly will impact salary caps and drive those down (some are saying even remove the cap altogether) given the Sunday Ticket Package needs to be reworked and owners will account for that 14B of loss. It could really turn the NFL upside down in the short term with caps/cash. (18 game seasons would most assuredly happen and I could almost see expansion on the table so the owners recovered a significant amount in entry fees) So, in that regards, that is how it could impact the signing of Love to a contract right now because their cash reserves might be significantly impacted and the future cap would really be thrown into question. Plus if you are asking a judge to reduce the appeal amount because of financial hardship, probably looks bad if one of your 'owners' gives out essentially 200M after the ruling. ("You claim you don't have the money, but post verdict a team dished out $200M in new contracts??")</p></blockquote><p></p>
[QUOTE="Firethorn1001, post: 1036683, member: 11511"] This is my high level notes on it. There are a bunch of articles out there explaining what is going on in much more detail and explain it better than I can. (I still can't wrap my head around how you can win a $14B lawsuit for something that is essentially a voluntary purchase.... truly 1st world problems but that's for another discussion) Short version. The fine is in relation to the Sunday Ticket Package and the NFL being sued for violating Anti-trust law for it. The award was some 4.7B, but then tripled under anti trust law to make it a little over $14B. Obviously the NFL is appealing that, but typically in order to appeal you need to front the money so it's put aside just in case an entity would go bankrupt fighting it. In that case, the NFL could be pushed to front $14B right away (some $440M per team). There is a judge reviewing right now. That judge could make a bunch of different rulings. Could agree with the NFL that the amount requested for appeal is a significant financial issue for them and reduce the amount required on bond, could force the NFL to post the amount for the appeal, could throw out the case entirely or reduce it to some other amount. I think the post verdict ruling is July 31st. Worst case the NFL loses the case in the end and had has to pay out $14B or even needs to put up the full amount towards an appeal bond. Many owners don't have $440M laying around just to pay fines or put in essentially escrow immediately so, it would be an issue for a segment of the league. For the Packers, they have close to $600M in reserves so they have the ability to do it, but how much would they need to dip into that money for this (they could take out loans) impacts what they have laying around for contract signing bonuses. If the fine is paid out it almost certainly will impact salary caps and drive those down (some are saying even remove the cap altogether) given the Sunday Ticket Package needs to be reworked and owners will account for that 14B of loss. It could really turn the NFL upside down in the short term with caps/cash. (18 game seasons would most assuredly happen and I could almost see expansion on the table so the owners recovered a significant amount in entry fees) So, in that regards, that is how it could impact the signing of Love to a contract right now because their cash reserves might be significantly impacted and the future cap would really be thrown into question. Plus if you are asking a judge to reduce the appeal amount because of financial hardship, probably looks bad if one of your 'owners' gives out essentially 200M after the ruling. ("You claim you don't have the money, but post verdict a team dished out $200M in new contracts??") [/QUOTE]
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