The NFL said Wednesday that it will slash profit margins for all its 32 teams by up to 30 percent, an effort aimed at bringing down costs.
The NFLPA has demanded a 30 percent cut for all teams, and the league said it will give teams 30 days to propose proposals.
But the league didn’t specify what those proposals would be.
“It’s time for us to make real changes in our business model, to move away from the profit maximizer model that was the primary driver of the league’s success,” NFL Chief Operating Officer Troy Vincent said at a news conference.
The league will pay teams $15 million a year for a one-year extension that would run through the 2022 season.
The move will help teams make a profit, which they had struggled to do before.
It also could help the league reduce costs, especially as the NFL is in the midst of a massive restructuring.
But NFL owners say the reduction in profit margin will hurt them financially, as they will have to cut costs for other priorities.
The players’ union has long pushed for a 50 percent cut in profit margins.
Vincent said Wednesday the NFLPA is looking to negotiate on a new contract that will give players a chance to save $10 million a season, with the goal of cutting their salaries to $7 million.
The union is seeking a 25 percent cut.
The reduction in profits is a major blow for the NFL, which was the NFL’s second-largest source of revenue after cable TV, and it could have a significant impact on the league.
The 49ers, who won Super Bowl XLVIII, are the NFL champions.
But they have struggled to keep up with the league in terms of profits.
The franchise has lost $5 million per year for the past five years, a rate that the league has not been able to maintain.
Last year, the 49ers made $1.5 million on average, according to the NFL.
The owners want to keep the team in San Francisco.