Even a money-making enterprise like the NFL isn't immune to the economic realities worldwide.
The league has reduced staff at its New York headquarters, the NFL Network and NFL Films. Commissioner Roger Goodell will take a 20 percent to 25 percent cut in salary and bonuses, according to USA Today.
Meanwhile, as the free agency and trading period opens today at 9 p.m., teams scrambled to write huge checks to retain key players, and a league-high 14 teams designated "franchise" players, guaranteeing salaries that will pay the average of the top five players at their respective positions.
The Raiders made the biggest news by re-signing cornerback Nnamdi Asomugha, whose contract could pay him $45.3 million over three years, and punter Shane Lechler, who could receive $16 million over four years.
The top-paid cornerback on a per year basis last season was Philadelphia's Asante Samuel, at just over $9 million. Lechler's deal nearly doubled what any punter has ever made.
While his team has fallen into a six-year funk and ranks among the bottom in terms of revenue and franchise value, it didn't make Raiders managing general partner Al Davis a fiscal conservative.
"I don't know, maybe they have more money than us," New York Giants general manager Jerry Reese told reporters at the NFL scouting combine in Indianapolis. "I'm not sure how they're doing that, but that's their business, not our business."
Indications are that elite free agents have little to fear from the economic downturn and the NFL facing labor uncertainty in the form of an uncapped year in 2010 and a potential work stoppage in 2011.
The Carolina Panthers signed left tackle Jordan Gross to a six-year contract guaranteeing him $30.5 million, put the franchise tag on defensive end Julius Peppers for $16.7 million for a single season and confirmed they were laying off 20 employees.
In a talent-driven league, money will continue to be spent on talent even if pennies are pinched in other areas.
Baltimore Ravens executive vice president/general manager Ozzie Newsome said he has the green light from owner Steve Bisciotti to do what is necessary to upgrade the on-field product. Newsome said there has been no reduction in the scouting budget or in any area that would adversely effect the won-lost record.
"I guess you can say (the economy has impacted the Ravens) from a business standpoint, but from a football standpoint, it has not," Newsome said. "Steve allows me a budget to go out and acquire players and keep our players."
The biggest prize in this year's free-agent crop is Albert Haynesworth, the Tennessee defensive tackle who is the anchor of one of the NFL's top defenses. He will be a much sought-after commodity for any team looking for a disruptive force in the prime of his career. But he will cost some $25 million to $30 million in guaranteed money.
For those looking to get the last year or two out of a sure Pro Football Hall of Famer, Baltimore linebacker Ray Lewis will be open to the highest bidder. Dallas outside linebacker DeMarcus Ware said recently that Lewis is interested in joining the Cowboys.
Kurt Warner led Arizona on a surprise run to the Super Bowl and hits the open market with a year or two left in his career as one of the most accurate passers in NFL history.
Cincinnati wide receiver T.J. Houshmandzadeh is one of the league's most productive receivers over the past three seasons.
Free agency typically starts with a rush, setting the market, and then tails off. Those not snapped up in the opening days could face a long wait, according to Titans general manager Mike Reinfeldt.
"My own feeling is that at some point it hurts the second wave of free agency," Reinfeldt said. "I'm not sure it impacts the major players. I think the money is tighter and at some point they are going to be more frugal with their money."
Executives point out the hit-and-miss aspect of free agency, stressing the need for drafting and developing players while still hoping to land someone to put them over the top.
"To throw double-digit millions in guaranteed money and a high average per year into a player that is not part of your system and is coming from another situation, that really has me back on my heels a little bit," Atlanta GM Thomas Dimitroff said.
The Falcons were one of the NFL's success stories in 2008, going from 4-12 to 11-5 and a playoff berth.
Part of that success was the rapid development of No. 3 overall draft pick Matt Ryan, who stepped in at quarterback and played like a veteran.
Just as big was the success of free-agent running back Michael Turner, a backup to LaDainian Tomlinson in San Diego whom the Falcons signed for six years and $34.5 million, including a guarantee of $15 million. Turner was the NFL's second-leading rusher with 1,699 yards and scored 17 touchdowns.
On the other hand, the Raiders have already dumped 2008 free-agent signees Gibril Wilson, Kwame Harris, Kalimba Edwards and reportedly are considering cutting Javon Walker.
Davis conceded the class of '08 was a disaster.
"It was a tough year for me because we didn't do well in free agency," he said.
Said 49ers general manager Scot McCloughan: "You always overspend in free agency, so you have to be careful."
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