SMS under new TV contract

Any ideas/thoughts on how much the SMS cap will increase? Teams should have an extra $2m or so from TSN, how much/little of it will go to players, or for an extra roster spot or two? IMO rosters will not increase and the cap is unlikely to increase more than a few hundred thousand. Hope I'm wrong, I'd like to see maybe 2 extra players and a cap significantly higher, somewhere around $6m. Actually I'd like to see a percentage of gross revenues go to the players instead of a preset figure and revenue sharing as well but those are pipedreams I suppose.

I would also like to see a higher cap. The roster does not need to be increased, just allow the teams to dress the entire 46 man-roster instead of only 43. Having the cap set as a percentage of revenue is a good idea.

I am not sure what you mean by revenue sharing. If it is between the owners/teams and players, I am in support. If it is between teams that are profitable and those that are struggling, forget it. Each team should be self supporting. I may sound bitter but through the lean years of the 80s and 90s, the Riders sent money to eastern team to keep them afloat when we did not have the money to do it. Then when we were in jeopardy of folding only a telethon and loan from the NFL kept the Riders alive. Now that the Riders have turned their fortunes around through good management, developing a winning product and a solid fan base, I believe the Riders should be putting their money into maintaining that and paying for a new stadium.

Sorry for the little rant but I guess I am still bitter to think of my money going to help Toronto pay top dollar for a player like Rocket Ishmael or Doug Flutie when we couldn't afford to pay those salaries here and so we got third rate football (no play-offs for 11 consecutive years) while the teams we were sending money to were getting Grey Cups.

Gate equalization was what the CFL called its revenue sharing in the 70s. Basically Toronto and one or two others paid into it and the struggling teams drew from it. The NHL and NFL have or had forms of revenue sharing. Maybe the teams that can afford to go over the cap could pay into a fund that the poorer teams could draw from. It's not something that I've thought a lot about, just an idea. But I take your point.

As for the cap itself, I'd like to see it at roughly 50% of average team gross revenues; including corporate sponsorships. merchandising, concessions and parking as well as gate receipts and TV revenue.

Can't do that.
For one 50% of player costs, not the SMS. there are non-SMS player costs like playoff bonuses, pension $$ and players on the 9 game.
Secondly gross revenues would mean all teams except maybe the Riders are losing millions per year... so unless you want the CFL to die not a good option.
Gross revenues doesn't include all the costs associated running a team, stadium. It doesn't factor in things like spoilage, food/beverage purchase costs or employee costs for concessions or merchandise or what teams pay for rent, stadium upkeep and so on.

The players should end up with 50% of the new TV $$, which would be about $1M per team split between pension, per diem, TC and SMS increases.
I expect the SMS to end up near $5M in '14,then get towards $5.5M in the years following during the same ~5 year CBA. Players will likely get increase to their non-SMS $$ too like pension and playoff $$ to go with it.

Hopefully for roster changes, game day rosters become min 22 NI's/max 22 I's. no more QB exclusion from the ratio, just make it so all Import QB's will be listed as DI's + teams must have 3 QB's(I or NI) on roster, and that teams have 6 DI's.
So that's 16 I starters + 1 QB(DI or NI) + 7 NI starters. The QB can be an NI or DI starter without changing the starting NI/I ratio, reason is simply teams gain another DI elsewhere if they have a NI QB as a back-up and can start the guy with no ratio concerns if the guy is injured.
So Game day roster of 44 + 4 Reserve, then expand the PR to 10, with a min requirement 5 NI's if all 10 spots are used.

I agree with you about the roster size of 46 and actually it is 42 that play, but it makes no sense all should play.
All should play and in fact, let's increase the size to 50 players and get rid of the practice squad.
The players are long overdue for an increase after taking the haircut for many years in order to save the league.
The cap should be increased by $1M and so should the playoff and GC money.

[quote=“barnes7”]
Can’t do that.
For one 50% of player costs, not the SMS. there are non-SMS player costs like playoff bonuses, pension $$ and players on the 9 game.
Secondly gross revenues would mean all teams except maybe the Riders are losing millions per year… so unless you want the CFL to die not a good option.
Gross revenues doesn’t include all the costs associated running a team, stadium. It doesn’t factor in things like spoilage, food/beverage purchase costs or employee costs for concessions or merchandise or what teams pay for rent, stadium upkeep and so on.
quote]

Most other leagues are in the 50% area when it comes to salary caps. And I don’t believe the CFL is as unprofitable as some make it out to be. If you’re selling 28,000 tickets a game at an average of $40 per ticket to 10 home games that’s $11.2m. TV rights are now going to be about $4m per team apparently. I’ve read in Sport Illustrated that teams generally take in anywhere from 25-40% of their gate receipts from concessions and parking. I’ll be conservative and take half of the lower figure, that’s $1.4M. I really don’t know what the various teams make in sponsorships but I remember reading some years ago that each team was expected to sell at least $2.5m so I’ll use that figure. So that’s $19.1m, without taking suite rental and merchandising into consideration. Most of the teams pay little stadium rental. Playoff bonuses come from the league not from individual teams. If teams can’t pay their players half of that amount and stay afloat on the other half spending is really out of control somewhere. The players are getting screwed and have been for a long time.

Does anyone have an actual link that suggests western teams were paying for the rocket or flutie to be in Toronto?

I believe Ismail was paid under a personal services contract to McNall et al. Flutie I'm not so sure about, but I think his salary was not included in any cap as he was a marquee player but I may be thinking of someone else. He was only in Toronto for a couple of years anyway, spending most of his CFL career in BC and Calgary. T think Murray Pezim was the owner that brought him to BC. Larry Ryckman owned the Stamps when he was there.

There was a marquee player rule exempting same from the salary system then, as there was no real cap.

The most important aspect the players need to focus on is getting a coaches and management salary cap... If those wages are not frozen, then all additional TV monies not givin to players will go to them.

I will be extremely surprised if SMS increased more than $500,000 in 2014. Here are my expectations/wishes:

SMS to increase between $400,000 and $500,000.

SMS to increase,starting in 2015, by $125,000 to $150,000 a year for 4 years.Max. cap to vary between $5.3 and $5.5 millions in 2018.

Rosters to increase to 47 players; dressed players increased from 42 to 44 all effective in 2014.

Per Diems to increase.

Playoffs monies to increase effective in 2014, particularly for teams finishing in first places and winners and losers of semi finals. Grey Cup monies to increase by $2,000 for winners-to $18,000- and by $1,000 for losers.-to $9,000- Effective in 2016.

I will not be surprised if CFL Teams want to reduce the Non-Imports starters from 7 to 6,effective in 2014. Personally, I have no problems with this demand. The number of Non-Imports will not be reduced,only the minimum starters. For instance, in 2013 there were a minimum of 56 starters for all 8 teams; in 2014 the minimum for the 9 teams would be 54.

With the decline of canadian dollar to US dollar, Import players will experience a 10% or so reduction when converting their pay in canadian dollar to US dollar. Some Imports will most probably want an increase,although they did not want to reduce their salaries when canadian dollar was worth more than US dollar.

I do hope that Management and Players will have positive negotiations. I understand that Players will want a major increase and I hope that compromise/understanding of each side will occur.

Richard

I am definitely on the players side as for years they have been taking a haircut, make that brush cut to do their part in saving the league.
No it's time for the league to pony up and right the wrong.
Initially I was of the opinion the increase has to be around $500k, but now how about 50% of the some $2M per team increase or $1M.
The league was also seriously looking into selling the naming rights a few years ago for the Grey Cup.
This should occur and let's say a windfall of $5M per season is garnered.
Increase the playoff money and give the winners $50k per player with the losers at $25k per.
Even though we love our league because we can all relate to the common man type salaries, it is time to come out of the dark ages with an increase and while we are at it let's improve the roster size to 50 man and everyone plays.

Absolutely Agree.

Changes I'd like to see.

Changes need to be made to take into account years of service as to CAP hit.
Player and football operation salaries should be listed.
Maximum Salary of 350k per player or so should be added.
Minimum Salary needs to Increase so does the Practice Roster "living allowance.
Coaching and football ops expenses need to be controlled.
Min of revenues needs to be guaranteed to players. Does not matter if this is done through revenue sharing, or through Grey Cup revenues or what but players should receive a minimum of 30 percent of average team revenues, ideally 35 percent. Owners are going to have to stop playing shell games and work things out among themselves.
NI players entering the draft should sign an agreement with the league that they will accept a standard 2 year CFL contract

[b]HfxTC wrote: Changes I'd like to see.

Changes need to be made to take into account years of service as to CAP hit.
Player and football operation salaries should be listed.
Maximum Salary of 350k per player or so should be added.
Minimum Salary needs to Increase so does the Practice Roster "living allowance.
Coaching and football ops expenses need to be controlled.
Min of revenues needs to be guaranteed to players. Does not matter if this is done through revenue sharing, or through Grey Cup revenues or what but players should receive a minimum of 30 percent of average team revenues, ideally 35 percent. Owners are going to have to stop playing shell games and work things out among themselves.
NI players entering the draft should sign an agreement with the league that they will accept a standard 2 year CFL contract[/b]


agree with the majority of your points HfxTC, although I believe a $350,000 max salary cap may deter future QB talent/stars from making the trek up north to play this game.
At $450,000 currently, (previously $500,000 with Esks) players such as Ricky Ray are worth every penny and then some.

I'd also like to add that the option be stricken from future agreements as this provision is basically worthless.
Make deals a 2 year mandatory minimum, or longer if both parties are in agreement, but without the option clause.

Any salary bonuses and/or guaranteed remuneration should remain as is, a mutual settlement.

and by implementing some form of revenue sharing program, all salaries across the board should measurably increase, especially the league minimum which has needed reform for quite some time.

I think 350k is the sweet spot but anything between 350k and 10 percent of the cap works.

With the majority of the teams making money and with the league maturing enough and now with the added TV revenue and greater sponsorship dollars, the return of the marquee player rule is required.
With a maximum of $500,000 for same and to be excluded from the cap.

Nothing should be excluded from the CAP, actually things need to be added. If you create this exception teams that don't have a marquee player end up at a 500k disadvantage.

The NFL's new deal is something like: 55% of national media, 45% of NFL ventures and 40% of local club $$, so players are suppose to get 47% at the end... and safe to think that when you're dealing with hundreds of Millions in revenue per club non-player costs are easier to pay.
Now if the CFL is getting $100M+ per team in TV revenue, then sure the players can get 47% of football related revenue.

How can you simply "not believe" the CFL profit margins are as thin as they are? lol
The Eskimos, Bombers and Riders release their finances annually. that's 1/3 of the league, and it's widely accepted that the Kitties and Argos lose $$ in a normal year... although the Kitties will be better off in Timmies, Bob Young has lost Millions on the Kitties, so he can't afford the cap to go up Millions so he breaks even at Tims, he needs to time to re-coup some loses.

So right there that's over 5/9th of the league, with Ottawa yet to play a season, so 5/8ths of the '13 CFL.
-The Riders who blow out the rest of the league in terms of revenue, make healthy profits in the $1M-6.5M per year range... and they'll need to pay like $25M towards their new stadium + the facility fee from the new digs goes to pay the stadium, Revenue from the '11-'12 seasons was 29-31M... yet they only made 1.1-1.6M in those years.
-The Bombers tend to range from a loss of $1M to profit of $2.3M('11, thanks largely to concerts and record attendanc), and their profitable years tend to be thanks to concert revenue, with Reve7nue in the 14.7-17.7M('11) range in '11/'12, yes they have a new stadium BUT they need to make annual payments of $4.5M to pay off that stadium so pretty unfair to think the players should get paid before the team is allowed to pay off the stadium IMO.
-The Eskies have been in the 100-1M profit per year range the past several years, Revenue from 15.2-18.8M between '09 and '12

So how are teams going to support a cap increase you are suggesting of over $5M, to a $9M+ Ceilling?
you want to know where they are spending, simply look up the annual reports of the Riders, Bombers and Eskimos.
There is more to football ops then just players, you need coaches, scouts, GM/front office, training staff, equipment staff, equipment, the Bombers and Eskies had football ops expenses in the 9-10M range in each of the last couple years, while the Riders were between 10.8-11.3M.
Then teams have marketing, game day, merchandise and concession expenses.

You want to see where the Riders are spending:

http://www.riderville.com/page/ridersagm

lol, yes the Players deserve a SMS increase, but 50% of total team revenue haha NO.
getting 50% of the new TV revenue(between the SMS, playoff and other player compensation) by the 2015 season, sure that's fair.

Indeed there should be no marquee player exception, it's bush league and shouldn't exist.

All it would do is take the starting QB out of the SMS, no reason at all to do it. Simply increase the Cap by $500-600K, for '14.
I hope the CFL never does something as foolish as bringing back a marquee player exception.