February 29, 2024

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The NFL’s sharply elevated salary cap for 2024 is the talk of the combine in Indianapolis. … Electronic Arts continues to face choppy industry waters as it conducts another round of staff cuts. … Plus: More on the Trail Blazers, Jaguars, Timbers, and a Chiefs superfan.

— Eric Fisher [[link removed]]

NFL Combine Is Buzzing With Talk of Nearly $1B in Extra Salary Cap Space [[link removed]]

Kirby Lee-USA TODAY Sports

“I was smiling.”

That’s what Bills general manager Brandon Beane (above) said his reaction was when he saw the NFL’s salary cap number for the 2024 season. The cap’s record jump of $30.4 million up to $255.4 million [[link removed]] has dominated the talk so far this week in Indianapolis, where team executives are gathering for the annual NFL Scouting Combine. Teams had been anticipating a cap number of at least $5 million to $10 million lower, but the larger-than-expected increase came from more media revenue and deferred payments from the COVID-19 pandemic. “It saves you,” Beane added during an interview on PFT Live [[link removed]]. “Maybe it’s one less guy you’ve got to release or restructure.”

Since the NFL operates under a hard cap—every team has the same amount of money to spend—the dollars and cents of it all aren’t typically as interesting as they can be in sports like baseball and basketball, which allow for more flexibility through owners’ willingness to pay a luxury tax.

Deep-pocketed NFL owners can’t go all in as Steve Cohen did with the New York Mets last season, ultimately spending a record $374.7 million [[link removed]] on the 2023 roster (that missed the playoffs), including a $100.78 million luxury tax bill. But they also don’t have to worry about balancing player talent with their bottom line, like Golden State Warriors owner Joe Lacob said [[link removed]] is on tap this upcoming offseason.

So, that’s why the $972.8 million in combined extra 2024 NFL cap space is turning everybody into accountants. “Now maybe we can do more or plan more for the future,” Broncos GM George Paton said [[link removed].]. “So it just provides us and really all the teams with more flexibility moving forward.” Even official team websites are leaning into the spike: “How the increased salary cap affects Saquon Barkley,” an article’s headline on the Giants’ website reads [[link removed]'s%20number.].

The combine, which began on Thursday, will conclude on Sunday. The official league year begins March 13, but the negotiating period with soon-to-be free agents begins March 11, and teams have already been allowed to assign franchise tags. So, with the salary-cap-crunching season set to be slightly less harsh this spring, who will be “saved” and who will still be looking for their next payday?

Electronic Arts’ Layoffs Signal Ongoing Evolution, Struggles [[link removed]]

Electronic Arts

Electronic Arts is laying off 5% of its workforce, amounting to about 670 people, further showcasing just how difficult the once-thriving video game business has become.

The staff reduction is just one part of several moves by EA to trim costs, with the company also paring back on some real estate holdings and “moving away from development of future licensed IP that we do not believe will be successful in our changing industry,” CEO Andrew Wilson said in a memo [[link removed]] to staff.

The shifts are happening as EA continues a multiyear transition from simply a producer of physical video game discs to a live digital services business. To that end, Wilson also referenced “an accelerating industry transformation where player needs and motivations have changed significantly.”

The company has made some meaningful progress on this transition, and EA stock has risen by about 25% over the last year. But the road ahead remains choppy in what remains a highly saturated gaming market. The overall restructuring is projected to cost between $125 million and $165 million, according to a company filing with the U.S. Securities and Exchange Commission, including $40 million to $55 million in employee-related costs such as severance. The latest round of cuts follows a slightly larger batch of layoffs by EA in early 2023.

‘Doubling Down’ on Sports

Wilson identified sports as a key area where the more streamlined version of EA intends to “double down on our biggest opportunities.” But there, too, lie several trip-wires for the company.

After years of anticipation, EA intends to release [[link removed]] a revived version of its college football game franchise this summer. But the $600 per-player compensation offer to athletes has sparked accusations [[link removed]] of being below industry standards for the still-emerging name, image, and likeness era—perhaps limiting the level of intellectual property the game will ultimately feature.

The company’s flagship Madden NFL remains one of the industry’s leading sellers. But more than 30 years of annual releases has sparked complaints [[link removed]] of the game growing creatively stale. EA also made a bold move nearly two years ago to separate [[link removed]] from FIFA and produce its own soccer game, EA Sports FC. Reviews of that title were solid, and early consumer reception was strong [[link removed]], but the company is still attempting to build up that franchise in a video game business that remains in a post-pandemic slump [[link removed].].

To that end, EA’s ongoing issues are also thematically similar to a run of layoffs of other video game companies including Sony [[link removed]], Microsoft, and Tencent’s Riot Games.

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Breaking Down the State of MLB

Spring training is a time when many MLB players say they are in the best shape of their life, but how about the league itself? We explore the state of the game, and much more, with Jason Kelly of Bloomberg.

🎧 Listen and subscribe on Apple [[link removed]], Google [[link removed]], and Spotify [[link removed]].

STATUS REPORT Three Up, One Down

Soobum Im-USA TODAY Sports

Trail Blazers ⬆ The NBA team now has at least a five-year window to renegotiate a new lease [[link removed]] after the Portland City Council voted unanimously to allow it and the city to pursue a bridge agreement. The current 30-year agreement with the Moda Center is set to expire in 2025.

Jaguars ⬆ The NFL team is planning major renovations to EverBank Stadium with an estimated price of $1.4 billion, and half of that will come from taxpayers. The massive project received some good news when Jacksonville City Council filed a bill to earmark $10 million [[link removed]] toward the makeover.

Timbers ⬆ The MLS team is set to receive a new shipment of jerseys from Adidas without the DaBella logo after nixing its sponsorship deal with the home improvement service, according to Sports Business Journal [[link removed]]. A court filing revealed that at least three female employees said the company’s CEO, Donnie McMillan Jr., sexually harassed them and made unwanted sexual advances, first reported by The Oregonian [[link removed]]. The club is reportedly removing DaBella branding from Providence Park and is also allowing fans to exchange jerseys if they have purchased kits featuring the DaBella logo.

“ChiefsAholic” ⬇ The Chiefs’ superfan, whose real name is Xaviar Babudar, faces 50 years in prison [[link removed]] without parole after he pleaded guilty to 11 bank and credit union robberies as well as attempted robberies across several states from 2022 to ’23. As part of his plea agreement, the 29-year-old will pay $532,675 in restitution.

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The submission period for Best Venues is open through April 8 at 11:59 p.m. ET.

Learn more about the award and submit your venue [[link removed]].

Conversation Starters A little more than a year ago, Jimmy Butler surprised fans by appearing at the Heat’s media day as “Emo Jimmy.” Since then he’s taken steps [[link removed]] to trademark “Emo Jimbo” and, most recently, has starred in Fall Out Boy’s new music video as his alter ego. Speaking on Front Office Sports Today [[link removed]], Peter King expressed there is a significant global affection for the NFL and suggested the league should capitalize on this opportunity. Victor Wembanyama’s jersey sales were among the top five in the NBA season’s first half, despite the Spurs’ 11–48 record. His rookie trading card sales, however, are not performing [[link removed]] as strongly. Editors’ Picks RFK Stadium Bill Advances to Senate After Lopsided House Vote [[link removed]]by A.J. Perez [[link removed]]The bill’s passage in the House, with a vote margin of 348–55, indicates strong bipartisan consensus and support for D.C.’s plans. ‘I Don’t Got a Motherf***ing Boss’: Pat McAfee Goes Off on ‘All the Smoke’ Podcast [[link removed]]by Alex Schiffer [[link removed]]The ESPN radio host and commentator unloaded on ESPN exec Norby Williamson. Howard’s Figure Skating Team Part of Olympic Sport Growth at HBCUs [[link removed]]by Margaret Fleming [[link removed]]Olympic sports at HBCUs are growing, with gymnastics and swimming gaining momentum. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by David Rumsey [[link removed]], Eric Fisher [[link removed]] Edited by Matthew Tabeek [[link removed]], Catherine Chen [[link removed]]

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