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SBD/January 30, 2014/Leagues and Governing Bodies
Drew Brees Calls NFL's $765M Concussion Settlement "Just A Drop In The Bucket"
Published January 30, 2014
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TIP OF THE CAP? The NATIONAL FOOTBALL POST's Jason Cole reported the NFLPA is debating whether to use a $2M per-team option to "help increase the salary cap" to more than $128M in '14. The move would "end a string of four consecutive years in which the cap has been below its high-water mark" in '09 under the previous CBA. The union also is "hoping to reverse two years of uncomfortable negotiations aimed at boosting the cap and avoiding player unrest." The salary cap is "preliminarily expected to increase" to $126.3M for the '14 season, which would "mark the fifth straight year that the cap was below" the '09 level. If the cap comes in at the current projection, the union could use the $2M option to "boost the cap" to at least $128.3M (NATIONALFOOTBALLPOST.com, 1/27).
TAX SEASON: ADWEEK's Katy Bachman noted two bills that are currently going through Congress "would take away" the NFL and NHL's non-profit, tax-exempt statuses. NFL and NHL franchises currently "are taxable, but the leagues themselves are not." Rep. Jason Chaffetz (R-Utah), who introduced the Properly Reducing Overexemptions Sports Act, said, "In reality, the NFL and the NHL are for-profit businesses, and they should be taxed as such. They are not charities nor are they traditional trade organizations like local chambers of commerce." Bachman noted Chaffetz' bill "is identical to the legislation introduced last fall" by Sen. Tom Coburn (R-Okla.) (ADWEEK.com, 1/29).