Rewind the Tape | Looking Back on the Top Nine Pro Sports Money Stories Heading into 2020

In November of 2019, I shared the top nine pro sports money stories to watch heading in to 2020.

Here's a look back on what actually happened.

Will the NFL and NFLPA reach a deal to avoid a work stoppage? What will be the biggest changes to NFL player compensation?

Yes they did…and then some.

In mid-March, the NFL and NFLPA reached an agreement on a new CBA that provides labor peace through the 2030 season. Majority ruled amongst players, if only by a very thin margin.

Here are the 7 biggest changes in the new CBA, according to SB Nation. 

Subsequent to the new agreement, the NFL and NFLPA worked together on a revised CBA for 2020 due to the financial and operational impacts of COVID-19.

It was certainly a productive year for the NFL and NFLPA, although perhaps not as productive for the NFC East.

Will MLB free agents (and there are a lot of really good ones) get paid top dollar and sign quickly or will we see restraint from owners as we did in the 2019 off season?

During the 2019 Winter Meetings, the top three MLB free agents signed massive, long-term contracts heading into the 2020 season, settling some angst for at least the top-end of the baseball market.

Gerrit Cole signed with the Yankees for 9 years, $324 million on December 11, 2019.

Anthony Rendon signed with the Angels for 7 years, $245 million on December 12, 2019.

Stephen Strasburg signed with the Nationals for 7 years, $245 million on December 9, 2019.

That early action was a good sign for players, but MLB certainly experienced the biggest economic impact from COVID during 2020 and the 2021 season is not yet clear of further damage.

The 2020 MLB free agency period (currently ongoing) will be more important to watch than last year. Keep an eye on Trevor Bauer, Masahiro Tanaka, George Springer, JT Realmuto and DJ Lemahieu as players to set the market.

“Patience” will be the new buzz word, according to St. Louis Cardinals' GM John Mozeliak. 

Will Players Associations give more guidance and protections around Income Purchase Agreements? This is a below the radar story that needs to be watched.

Continues to be a beneath the radar story that took a back seat to COVID economics in 2020. Let’s move on.

In the wake of California’s Fair Pay to Play Act which is scheduled to take effect in 2023, will the NCAA make meaningful advancements in allowing collegiate athletes to monetize their Name, Image and Likeness?

For those not directly involved with sports business, the developments in and around Name, Image and Likeness (NIL) legislation may have gone unnoticed this year. But take note, the pace of change in college sports in rapidly accelerating.

There is a great summary in The Athletic (behind a pay-wall but worth the price of admission) from this past weekend catching us up to speed on all of the current legislation working its way through the system. It’s been a busy year, as expected.

“By the end of summer 2021, college athletes will be allowed to make money. They’ll finally be permitted to be compensated for their own name, image or likeness (NIL). And despite what NCAA leaders have warned for decades, hell will not freeze over. College sports will continue onward.”

Wait, what? College athletes getting paid? You betcha!

“A Democrat-backed state law passed in California started the ball rolling, and a bipartisan state law in Florida that goes into effect July 1 forced the issue. Now the race is on to create a federal law that would have everyone playing by the same rules, and the devil is in the details.”

Will we see wholesale changes to escrow in hockey?

The thorn in the side of players since the implementation of the CBA that ended the 2012-13 lockout has been escrow, a revenue sharing balance tool which is explained clearly here: 

And while there were changes to escrow in 2020, I don’t think either side wanted to negotiate under the current financial and operational circumstances the league finds itself in now.

In July, the NHL and NHLPA agreed to a framework around the league’s return to play plans for the remainder of the 2019-20 season and a memorandum of understanding surrounding a six year extension of their Collective Bargaining Agreement.

“According to the memorandum of understanding, escrow percentages are now capped in decreasing amounts over the CBA’s remaining six years – starting at 20 percent for 2020-21. Players also agreed to forego their final paychecks last season, putting that $140 million total toward their 50/50 escrow debt to owners, and they agreed to defer 10 percent of their 2020-21 salaries and bonuses – to be paid back in equal amounts in 2024, 2025 and 2026."

We can file all of this under the ‘live to play another day’ mantra.

As it currently stands, the puck is set to be dropped for the 2020-21 NHL season on January 13th with 56 regular season games on the schedule. 

Who will be the big financial winners at the 2020 Olympics in Tokyo now that the controversial Rule 40 has been relaxed?

Well this certainly didn’t age as I expected.

Unfortunately, like many other sporting events originally on the calendar in 2020, the Olympics, which were scheduled to take place in Tokyo were delayed (for now) until the summer of 2021.

While we wait this one out, here are some wise words from one of the most decorated Olympians, Michael Phelps.

Will compensation in women's sports continue to increase? I hope so.

It seems like CBAs were all the rage in 2020. The WNBA is no exception to that rule.

In mid-January, the WNBA and WNBPA reached agreement on a new Collective Bargaining Agreement which included an 82% increase to the maximum veteran salary, among other new benefits. 

While the new CBA is certainly a step in the right direction, there is considerable work left to do.

Here’s an inside look at how the new CBA impacted the life of one WNBA veteran.

How much will Esport athlete compensation grow in 2020 and how will contracts be structured? Will earnings increase across the board or concentrate with the top influencers?

Esports continues to mature as an industry and while a virtual world certainly helped fuel organic growth and non-endemic interest in the space, the jury is still out on player compensation.

In the interim, here is an interesting read on the NCAA's stance on esports.

Will there be a material impact to basketball related income figures as a result of the NBA China situation this preseason? 

Remember this story from last Fall?

The Daily from The New York Times had a detailed podcast on the history of basketball in China which is worth a listen. Interestingly, China's love of basketball predates the NBA being there.

Importantly for league economics, the NBA returned to CCTV with Game 5 of the 2020 NBA Finals. My opinion is that the NBA and China will continue to find a way forward.

Thanks for following along and hope you enjoyed and/or learned something. Will work on organizing my top pro sports money for 2021 in the coming weeks. Share any feedback below or reach out with questions.