When it comes to challenging the NFL, no one does it. From the original XFL back in the early 2000’s, the failed AAF and even Arena Football, nothing ever seems to compete with the league, let alone even stick around. So this is why the resurrection of the XFL, now more than ever, is both interesting and dumbfounding. There are so many questions about how the new league will not only succeed, but also how they will attract quality players to produce a quality product. One way they seem to be failing early, is with the contract situation.
Most know what happened to the failed AAF. After what seemed to be a stellar start with high viewership numbers, the league ultimately collapsed in on itself like a falling star. The issue? Not being able to make payroll and simply ending the promising new feeder-league for the NFL. So in order to be able to make it, the XFL set fixed salaries. Not too unexpected for a starting league with no Players Union. The problem, however, is that the salary compensation structure is nothing like was promised by the XFL at their opening combine.
What contracts were promised?
Back in June, the XFL promised salaries in a tiered system. They had four levels of compensation that would be given to the forty-five (45) man rosters. The Level One, would operate sort of like a franchise tag. Only one player would be given this designation and they would receive upwards of $600,000. Level Two was designated for three players and had a salary range of $150,000 to $175,000. Level Three, which was expected to be the highest level with twenty-three (23) players, was expected to average around $70,000 to $100,000. The last tier, Tier Four, was for the remaining eighteen (18) players and was expected to pay out $50,000 to $70,000. All salaries were to be fixed for the year and were supposed to give players the opportunity to change leagues if they had the opportunity to do so. Now back in June, some things were still to be decided upon, such as: (1) Performance Bonuses (2) Team Salary Caps (3) Signing Bonus (4) Stipulations (5) Practice Squad.
What Contracts were Given?
Ultimately the XFL did not deliver the goods, and they really did not have to. With the AAF completely obliterating itself, the XFL had a great issue of supply and demand. The XFL is the only supply other than the NFL and there is plenty of demand. By demand, I mean plenty of practice squad players, collegiate athletes, or hell, even high school football stars who may want to play for money rather than “The Man” (NCAA). So, what did the XFL do? They came in astronomically low on their salaries.
For example, the average XFL salary that was spoken about in June was roughly $75,000. However, as of last month the contracts are expected to be in the average range of $55,000. But that is not the only issue that has come to light. Apparently, the contracts that have been delegated as recently as November 22, 2019, state that all contracts are “NON-NEGOTIABLE.” Now I know that we are not all attorneys, but that is pretty self-explanatory. There is no room for negotiating whatsoever. What you get is a “take it, or leave it” type of scenario. But… that is still not all. According to a release by Pro Football Talk, in addition to being “NON-NEGOTIABLE” the contracts call for increased salary for wins. Which is of course a nice incentive to win the game, but this is NOT basketball. One player cannot single-handedly take over a game. You will see players get rid of this for higher net average salaries if this league continues and we see a player’s union develop. Lastly, players will get NO royalties for merchandise, agree to an arbitration agreement in lieu of litigation (shocker) and a player will not be able to leave the league for another until AFTER the season is over, with the championship game to be played after the NFL draft.
Implications:
- Salary:
- The salary issue has already had negative implications for the XFL as one of their draftees to the L.A. Wildcats decided not to play in the league because of the low base salary.
- “NON-NEGOTIABLE”
- This will also lead to players leaving immediately. The Tier they are designated to, is “NON-NEGOTIABLE.” So, they can’t even sit down and discuss their own worth, that rubs me the wrong way, I am sure the same will go for the players.
- No Royalties:
- Simply a cost-saving strategy to increase revenue to the league while it develops its brand and attempt to maintain player costs at a flat level through the League’s first couple of years. I get the economics of it, but not sure players will.
- Arbitration:
- I would have been more surprised if this was NOT in the contracts.
- League Transfer Limitations:
- While I do see players having major issues with this, the ultimate idea is to keep your product on the field and not leaving in the blink of an eye. There is a scenario that would otherwise develop where a player has a breakout first-half of the season and a team in the NFL has injuries. That player may want to make the leap to the NFL for not only more money, but their “shot.” While this makes sense to the player, it does NOT make sense for the XFL to allow its “best” players to jump-ship before the championship game. I see it as what the NCAA wish it could make players do to play in bowl games.
- Timing of End of Season:
- One MAJOR impact this will have on players is that with the league transfer limitations and the championship game being played after the NFL draft, this means players may not be drafted. Now, of course the players could be drafted and then play the championship game, but NFL owners and general managers may think twice about drafting an XFL player if he still has a game to go. Don’t want to waste a pick and then see them get injured.
The Bottom Line:
Ultimately, as was alluded to above, the decrease in pay may not matter a whole lot. As crazy as it is to say, there are people who would be willing to play football for free just to do it. I mean, I still play basketball on Saturdays for free, and that is definitely a show. But, in all seriousness, the XFL has taken a calculated risk, and whether it was driven by supply-and-demand or a decrease in cash-flow it will have ramifications on the XFL’s ultimate success. Some players may be irritated by the low salaries and little wiggle-room in the contracts, while some others still see it as their chance to make it. Either way, this decision could go to the long-term success or demise of the League, and hopefully players will take the “Deal!”
Sources:
- https://profootballtalk.nbcsports.com/2019/11/22/xfl-distributes-non-negotiable-player-contracts/
- https://xflnewshub.com/xfl-players/xfl-player-salary-structure/
- https://profootballtalk.nbcsports.com/2019/10/24/xfl-player-decides-not-to-play-in-xfl-over-low-xfl-salary/
