Report: Unsold PSL's Possible Cause of Jets Contract Issues

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Report: Unsold PSLs Possible Cause of Jets' Contract Issues

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6/05/2010 11:30 AM ET By Bruce Ciskie

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• Bruce Ciskie
  
• Blogger
  

After a great playoff run last winter, expectations are quite high for the New York Jets. As they move into the new Meadowlands Stadium, fans want to see them make another run at the Super Bowl, a place the Jets haven't been in over 40 years.

Before the season starts, it's become clear the Jets will have to deal with drama. Cornerback Darrelle Revis is upset about his contract. He is sitting out OTAs, and there are indications he will skip mandatory minicamp later in June.

He's not the only player dealing with contract issues. Offensive lineman Nick Mangold is unhappy with his deal, and other players could be due new deals soon. Despite that, the team continues to move slowly.

As odd as it may seem, there are indications the Jets could be dealing with financial constraints.

A story in Saturday's New York Post speculates that the team's inability to sell all the PSLs at their new stadium could be related to this sudden bout of financial conservatism.

According to an industry source, the Jets are not taking advantage of the lifting of the salary cap in the NFL this year, the last in the current labor agreement.

The source said the Jets -- despite a series of splashy moves and signings this offseason -- have just $110 million in salaries committed for the 2010 season. That is far below last year's salary cap of $128 million and even further below what the cap likely would have been this year (roughly $138 million).

... the $110 million figure in salary commitment follows The Post's exclusive confirmation last month that the Jets have more than 10,000 unsold personal seat licenses in their new $1.6 billion stadium in the Meadowlands, the cost of which was funded almost entirely by an equal partnership between Jets owner Woody Johnson and the families that co-own the Giants.

... "You really have to wonder just how bad it is there," an NFL executive told The Post yesterday.

It's an interesting hypothesis, to say the least. No one has unlimited money, but it's hard to imagine the Jets are suddenly this low on cash over 10,000 unsold PSLs. If they don't increase that $110 million in salary commitments, it's possible the Jets will be among the more frugal franchises in the NFL.

It's possible the impending return of a salary cap in 2011 might be an excuse, too. Of course, if that were a reason, the team would want to get as many new deals done now as possible. Front-loading those contracts would allow the Jets to take advantage of this uncapped season, while also making key players happy.

If they don't end up doing this, there will be a lot of disgruntled players on the roster, and the focus on off-field issues is bound to harm their on-field prospects, especially in a very competitive division.

[newjakecity]

I read the original article in the Post today by Bart Hubbich (who is fast replacing Cimini in terms of sensationalizing negativity regarding Jets beat writing). Its a very ill informed article and if those are real sources, I have a hard time believing they are doing anything more than baseless speculation. Consider:

1) The Jets didn't get one dime in revenue for concerts and other events in the old stadium. They now get revenue (along with the Giants) that automatically increases their earning power.

2) You can argue that the club sales are not going as well as planned and that in some cases there were price reductions, but consider that in those same seating locations, they were collecting at best $115 a ticket for the prime seats. They now are collecting anywhere between $195 and $700 for those that did make the club plunge. Even if they sell only half of those club seats that are available, that is still a net increase from what they made before.

3) For the non clubs that are sold (and let's say for the sake of argument that its 10,000 seats unsold), consider that every ticket has increased in price and in many cases have a seat license connected to them that wasn't there before. Considering that, 60,000 sold tickets at these price increases with PSL revenue (and I do agree that I hate PSLs as well even though I did make the plunge) still brings in more for the Jets than 70,000 at the lower prices from last year with no PSL.

4) I know the argument will be that they have to pay for the stadium and that takes away from the revenue points I made, but keep in mind that they were having to pay for it anyway over the last few years of the construction without bringing in any of the revenue. This did not prevent them from spending a lot of money to bring in talent via free agency. And if you argue that this was done to help PSL sales, then I counter-argue that being perceived as cheap and not keeping our most talented players will hurt PSL sales a lot more.

5) They also seem to be forgetting the 30% rule as well as the uncertainty of next year's salary cap (and what it may be after the CBA). I agree that they need to do whatever it takes to keep Revis (who because of salary won't be subjected to the 30% rule as much) and Mangold (who will be due to his relatively low salary last year), but both contracts will be complicated and they need to ensure that they fairly compensate both players and at the same time not have to have a complete fire sale next year.

There could be a multitude of reasons that the Jets haven't locked up these players but the PSL sales are not one of them.

[Larz]

wait, the jets aren't giving out $50 million bonuses to anyone who asks ?

they must be broke

duuuuuuuh

I think 2011 has a wittle more to do with it

and the other "league sources" are just green with envy

[bitonti]

talk is cheap... until the Jets sign a core player the speculation can and will run rampant

and the Jets deserve every last rumor... because at least 2 of these 4 deals should have been done already.

I dont believe they are broke... but they are "cash poor" and looking at 9 figures of capital debt.