The Superstar Market: When Money Meets Opportunity

 

Any financial advisor can tell you that the financial market is forever changing. When it comes to the NFL, that is also the case. Star players come and go. At the same time, the star players they currently have want more opportunities to shine, and with that comes more money in their contracts. Let's look at that from a contractual viewpoint. Patrick Mahomes as of 2023 has a contract worth $5.5 million, a number that will decrease until 2027 when his contract will be worth $10 million. What is the cause of that financial decrease? The answer is the salary cap. In football, the salary cap is the amount of money a team can pay their players in a given season. This year, that amount is $224.8 million. 

The salary cap in my opinion is not only too low but also a detriment to the players. Players like Mahomes, Justin Jefferson, and Lamar Jackson are struggling to get the right contract because even though the organization believes in them, they are putting their money and resources into more of the behind-the-scenes aspect of the game. Instead, they should split it evenly, so the players can get paid fairly and the stadiums can be updated. Salary cap issues pop up a lot because if a team goes over the salary cap, then the organization can fine said team, as well as potentially cancel their draft picks and cut players from their roster. The NFL has a major financial problem in that it is not willing to put the money in the right place when it comes to players' contracts. Coaches oftentimes have to take money out of certain team necessities in order to make sure that the players feel secure on the team. 

What this means is that the NFL needs to change. Players are asking for bigger contracts because they feel betrayed by the organization they play for. The NFL is worth billions of dollars, they can afford to take money from team resources in order to increase player salaries. That is why trades are happening. Teams are not willing to hear players out and when they do not get the right salary, they jump ship and decide to sign elsewhere. Think about it this way. An increase in the salary cap means an increase in player worth. Teams are only as good as the players and the opportunities these players are getting not only need to increase but the amount of money they get in their contracts needs to increase too.