The Difficulties, Truth, and Realism of NFL Contract Negotiations

David Coll- 9/8/23, 11:05AM

 

The NFL, or National Football League, is a professional American football league with a highly competitive and complex system of player contracts. In this paper, we will explore the reasons why the NFL does not guarantee contracts, and examine the Le’Veon Bell, Lamar Jackson, and Odell Beckham Jr. situations as case studies to illustrate the impact of contract negotiations on players, teams, and the league as a whole. The NFL’s contract system is unique and often misunderstood, and it is important to understand the nuances and complexities of this system to fully appreciate the challenges and opportunities facing players and teams in the league.

There are multiple reasons why the NFL does not guarantee contracts. The first reason is simply the nature of the sport. Football is a physically demanding sport, and players are at risk of injury every time they step onto the field. The risk of injury means that a team may not want to guarantee a player’s contract for the long term. This can put the team very far back and hurt them for years. Football rosters are 53 people so the chances of injuries are very possible. Another aspect that the 53 person roster affects is the salary cap. The NFL has a salary cap, which limits how much money a team can spend on players’ salaries. Guaranteeing contracts could make it more difficult for a team to manage its finances and stay under the salary cap. Managing the salary for 53 people is probably extremely hard. This doesn’t include the practice squad you are paying. People will move up and down from the league and practice squad due to performance, which leads me to my next point. Guaranteeing contracts could remove incentives for players to perform well. If a player knows that they will get paid regardless of how well they play, they may not have the same motivation to work hard and improve. This could make players care less about the actual sport and just be in it for the money. All of these reasons show how flexible managers need to be and these are some reasons why they do not have guaranteed contracts.

Le’Veon Bell is a NFL running back that is currently unsigned. In 2017, Bell was given the franchise tag by the Pittsburgh Steelers, which meant he was set to earn a one-year contract worth approximately $12 million. However, Bell refused to sign the franchise tag and chose to sit out the entire 2018 NFL season, in hopes of securing a more lucrative long-term deal. Since they could not find a deal he thought that sitting out would be better than playing the sport you are paid to do. This was not a good idea as it shows what he thinks of the franchise tag system. He did eventually sign with the New York Jets in March 2019, agreeing to a four-year contract worth $52.5 million. He thought he got what he wanted but he was released by the team in October 2020 after just 17 games. He then signed with the Kansas City Chiefs on a one-year deal, but his performance was underwhelming, and he was released by the Chiefs in December 2020. He went from one of the best running backs in the league to a player tossed around the league. This shows how much sitting out one year can affect you, your play, and reputation throughout the league. Bell and the steelers could have communicated better and worked out something as they clearly did not want to split apart. The Steelers also have been a decent team since and are always just in or just out of the playoffs.

Lamar Jackson is a NFL quarterback for the Baltimore Ravens. Jackson won the NFL MVP (Most Valuable Player) award in 2019. He became the youngest quarterback in NFL history to win the award at the age of 22. Jackson had an outstanding season in 2019, throwing for 3,127 yards and 36 touchdowns while also rushing for 1,206 yards and 7 touchdowns. He led the Baltimore Ravens to a 14-2 record, the best in the league that year. You might wonder how he had a hard time getting the contract he wants, the main concern is injuries. He has not played a full season since 2020 where he only missed a game because they rested their starters after clinching the playoffs. That is two straight years with injuries, and his team made it to the playoffs in the 2022-23 without him. The Ravens and Jackson agreed to a deal worth $260 million, a source told ESPN, making $52 million per year. The contract he got offered, given his injury history, was one of the biggest deals in NFL history, and he got to stay with the team he wanted. Jackson and the Ravens had poor communication and built up a lot of drama around this. This falls more on Lamar as he does not have an agent and is not budging on what he wants for a contract. This shows poor negotiation skills on Jackson and resulted in no teams in the league seriously considering his offer. In negotiations you need to work with each other and he is only trying to get what he wants and not negotiating.

Odell Beckham Jr. (OBJ) is a NFL wide receiver who just signed a big contract with the Baltimore Ravens. OBJ played for the Los Angeles Rams in the 2021-22 NFL season, and tore his ACL in the Superbowl. The Rams went on to win the Superbowl, but things quickly changed as they were unsure if they were going to bring OBJ back. Towards the end of the 2022 season OBJ said that he was ready to play for a team, but wanted $20 million on a team that could contend in the Super Bowl that year. Teams that have a shot for the Super Bowl do not have that much money to just hand to a receiver that missed the whole year on a torn ACL injury from the last year’s Super Bowl. He wasn’t taking any less than what he wanted, and was not negotiating. He ended up signing nowhere and created a lot of drama for no reason. In the offseason he was looking for the same deal that he failed to get last year. Teams were wary about him because $20 million for a 30 year old coming off a year missed, and an ACL injury is not something teams like to do. He was still not listening to negotiations and showed poor behavioral skills. This is nothing new as OBJ has always been at the front of drama and childish situations. However, in this situation it worked out for him as he signed a 1 year, $18 million contract with the Ravens. We will get to see how this plays out and if he still got it. If he is underwhelming and continues his selfish non-negotiation ways, this may be the last time we see him play.

This situation is different as this is a proper negotiation and trust deal. Jalen Hurts is a quarterback for the Philadelphia Eagles. When he was drafted he was doubted by many, but he always ignored that and stayed true to the grind. It paid off big time after his performance last season. He had 3,701 passing yards with 22 touchdowns. That is only half of his game while he had 760 rushing yards with 13 touchdowns. This was a runner up MVP season for Hurts and solidified himself in the top tier of NFL quarterbacks. He was eligible for extension this offseason and scored a five year $255 million contract. This negotiation was smooth as both sides respected each other. Hurts is a team player and was willing to take a team friendly deal in order to win, but the Eagles thought he deserves to be paid. They came to an agreement on a contract that pays a lot, but as the years go on he gets paid more and more each year. This allows the Eagles to keep their Super Bowl window open while keeping their star QB happy. This is how negotiations should go, as they respected each other and came to an agreement that helps both sides.

In conclusion, the NFL’s system of player contracts is complex and multi-faceted, and there are many reasons why the league does not guarantee contracts. The risk of injury, managing team finances under the salary cap, and the need for players to maintain incentives to perform well are all factors that contribute to this system. However, this system can also lead to difficult negotiations between players and teams, as evidenced by the Le’Veon Bell, Lamar Jackson, and Odell Beckham Jr. situations. It is important for players and teams to communicate effectively and work towards mutually beneficial agreements that balance the needs of both parties. Understanding the nuances of the NFL’s contract system is essential for anyone involved in the league, whether as a player, team manager, or fan.